1. Company Cars/Cash Allowances - Current Trends

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The bar chart below shows the vehicle policies in use amongst Austrian participating companies in the Watson Wyatt Company Car Survey since 1996. (1) The provision of company cars remains widespread market practice in Austria and is the predominant benefit offered to Top, Middle Management, Sales and Field forces, both in local companies and in subsidiaries of international corporations, as shown in the graphical display below. (2) Company cars are typically financed through finance lease arrangements and contract hire arrangements (including maintenance). Company cars are usually kept for 3 to 4 years or once a mileage of 120 000 km is achieved. Regarding the actual choice of the car makes and models, Austrian companies/employees have a clear preference for German car manufacturers. There are only a few examples of cash allowances since these are taxable like any other type of cash income, whereas the provision of a vehicle is tax-effective to both employee and employer. -
| 02/03/2004 |

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