Super-sized utes and SUVs exempt from US fuel efficiency standards
Labor’s proposed fuel efficiency standard imposes higher weight limits than the US scheme, which provides exemptions for popular Ford, RAM, Chevrolet and GMC pick-up trucks, SUVs and vans.
Anthony Albanese’s proposed fuel efficiency standard imposes higher weight limits than the US scheme, which provides exemptions for popular Ford, RAM, Chevrolet and GMC pick-up trucks, SUVs and vans.
As the Prime Minister and Energy Minister Chris Bowen argue Australia is matching US rules, top-ranking car brands in the US are selling larger models not captured by fuel efficiency standards.
US rules allow exemptions for vehicles above 3.86 tonnes. The Albanese government’s preferred model, capturing light commercial vehicles up to 4.5 tonnes, slaps fines on carmakers unless they lower carbon intensity across Australian fleets by more than 60 per cent by the end of the decade.
Labor’s plan, which includes a credit-trading system where suppliers who beat targets can trade credits with those falling short, is subject to a one-month consultation period with legislation expected in the first half of the year.
Motoring industry sources and the Coalition believe the scheme, starting on January 1 next year, could restrict choice for Australian motorists, drive-up costs and force drivers into smaller cars.
Analysis of publicly available data reveals that in 2021, 45 per cent of Ford F-Series pick-up trucks were excluded from US fuel standards. Across RAM vehicles, 33 per cent were exempt and 15 per cent of Silverado and Sierra vehicles were not captured. The top three selling US vehicle brands last year were Ford F-Series, Chevy Silverado and RAM.
As Peter Dutton on Friday ramped up attacks on Labor’s “new ute and family car tax” at a Frankston car dealership ahead of the March 2 Dunkley by-election, Mr Bowen said Australians shouldn’t be concerned about buying utes.
“Look at the United States. They’ve had these standards since the 1970s – for about as long as I’ve been alive. And you can get a pick-up truck … they call their utes pick-up trucks … in the United States pretty easily. The idea that if you have emissions standards and somehow you won’t have utes is just a fantasy,” he said.
The Australian this week revealed Mr Bowen had oversold multiple claims the Mazda CX30 model available in Britain was “25 per cent more fuel efficient”. On Thursday, he said it was “around 20 per cent”.
The New Vehicle Efficiency Standard, which catches up to the US model in 2028, has an identical target to the US for passenger vehicles of 68g/km and a higher target for light commercial vehicles of 94g/km.
A spokeswoman for Mr Bowen and Transport Minister Catherine King said the NVES could be “designed to suit Australia’s circumstances”.
“It reflects Australians’ desire for greater choice of cheaper, cleaner vehicles, including utes and SUVs. The car companies’ own commitments and forecasts show the claim that they aren’t preparing for a lower emissions future is a fallacy,” the spokeswoman said.
In September 2022, after test-driving a Ford Lightning electric ute, Mr Bowen said it was “hugely popular in America”.
According to Ford data, sales of the F-150 Lightning hit 24,165 last year, well below 750,789 F-Series model vehicles sold. Ford recently announced it had slashed production due to lack of demand.
Speaking alongside Liberal Dunkley candidate Nathan Conroy and Australian Automotive Dealer Association executive director Brian Savage, Mr Dutton attacked Labor’s plan.
“If you’re a tradie and you’re buying a BT-50 or you’re buying a D-Max or a HiLux or a Ranger, the government’s ute tax is going to drive up the cost of purchasing that vehicle,” he said. “In New Zealand, the tax drove up the cost of a car by about $NZ7000. Chris Bowen, talks about the Mazda CX-30. It’s not as fuel efficient as he made out. It’s also $19,000 dearer than what it is in Australia.”
Opposition transport spokeswoman Bridget McKenzie said: “Labor has been trying to sell this policy using the US as an example but they are comparing apples and oranges. As we head toward a low-emission future, we need a vehicle efficiency standard that is homegrown for Australian conditions that ensures Australian motorists can still afford to buy the cars they love to drive.
“Many large US style pick-ups are exempt from their scheme, which enjoys massive taxpayer-funded subsidies and emissions supercredits not available under the Albanese government’s planned carbon emissions scheme.”
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