Australia a "dumping ground" for old tech, says VW

Volkswagen has used disappointing Australian auto industry CO2 results to hammer the federal government on emissions standards and fuel quality.

Outspoken Volkswagen Group Australia chief Michael Bartsch said the results showed Australia was becoming an “automotive third world” and a “dumping ground for older and less efficient vehicles”.

Bartsch is deputy chair of the Federal Chamber of Automotive Industries (FCAI), which came up with the voluntary CO2 reduction plan in 2020 in the absence of federal government action.

Bartsch called for a mandatory CO2 target and for better unleaded petrol quality with lower sulphur content, both of which he says would encourage new drivetrain tech with lower or zero emissions to come to Australia.

“Australia's backwardness in terms of both CO2 and sulphur standards means our country is becoming a tip for technology that is no longer acceptable elsewhere,” he said.

“Unless a CO2 reduction target is set, manufacturers will continue to prioritise modern markets both for zero emission vehicles and the most efficient conventional engines.

“Markets where there are targets to meet and punitive fines if they don't are naturally first in line for zero emissions vehicles.”   

Figures issued by the FCAI breaking down 2020 emissions levels reveal about two-thirds of passenger vehicles brands missed their individual targets and more than half of commercial vehicle brands.

Overall, the passenger vehicle segment (which includes light-duty SUVs) undercut its 154g CO2/km target by four grams, while commercial vehicles (SUVs, utes and vans) averaged 217g/km versus a 197g/km target.

At 152.881g/km, Volkswagen passenger vehicles just undercut both the industry target and its own brand-specific 155.376g/km target for CO2 emissions.

But VGA’s commercials averaged a disappointing 214.056g/km – well over the industry target and its own 191.706g/km specific emissions target.

Bartsch said missing that target was a direct result of Australia’s lack of action on emissions standards and fuel quality.

“Because of the increased difficulties Volkswagen faces in obtaining the latest engines, our commercial vehicles arm is only now able to introduce its new four-cylinder ranges,” said Bartsch.

“Just as Volkswagen's passenger vehicles performed better than the designated target in the 2020 results, so too will its van and ute range from this year.”

Bartsch slammed the current Australian fuel standard, which allows 150 parts per million (ppm) in 91RON unleaded petrol and improved to only 50ppm in premium.

“Australian diesel has had a limit of 10 parts per million of sulphur since 2009. It is incredible that Euro 6 and 10ppm petrol will not be mandated in Australia until 2027,” he said.

“It is scandalous that motorists are forced to pay a premium for so-called 'premium' petrol of up 25 cents per litre over 91RON.

“Europe-sourced vehicles cannot reliably run on the latter, so effectively owners of the most efficient conventional vehicles on sale in this country are penalised for emitting less. This is on top of the outdated five per cent tariff to which European cars are subject.

“Because fuel policy appears to be dictated by the remaining oil refiners, Australians are stuck with fuel quality rated at 84th in the world for another six years. Meanwhile low sulphur 10ppm petrol is being refined and sold in New Zealand. It is the standard throughout much of our region, Europe and North America.”