The Federal Chamber of Automotive Industries (FCAI) says the Federal Government should learn from the United States Environmental Protection Agency (EPA) announcement, which amended its emissions reduction targets and timeline because the impact on consumers and manufacturers was too severe.
(FCAI) chief executive Tony Weber said that the United States had joined the UK and New Zealand in reviewing the pace of introducing strict fuel efficiency standards, allowing more time for consumers and car makers to switch to more efficient vehicles.
“A vehicle efficiency standard is a significant step for Australia, and we should take the time to ensure that car companies have sufficient time to increase the supply of zero and low-emission vehicles into the local market.
“Like in the US, Australian consumers should have time to embrace the shift and ensure they can access the types of vehicles they want and need at affordable prices.
Weber says there was no value in introducing a scheme where the ambition outweighed the reality of market supply and demand, only to rewind it later.
“In addition to timing, the Government should consider other elements of the US standards, including vehicle multiplier credits, off-cycle credits such as air-conditioning credits, penalty structure, timing, and vehicle classification. The US Government also provides large financial incentives for vehicle manufacturing and subsidies of up to USD$7,500 for consumers to buy EVs.
“The Australian Government has consistently said it uses the US scheme as a guide. Rushing to introduce a scheme, in just nine months, without learning from the US experience is a recipe for disaster in Australia,” said Weber.
