BMW calls for government CO2 action – again

BMW has once again called on the Australian government for low-emission vehicle incentives and tighter vehicle emissions regulations such as those in Europe and the US.

Speaking at this week’s launch of the 530e – the brand’s seventh electrified model – BMW Group Australia CEO Marc Werner described the emissions levels of Australia’s new-vehicle fleet as “shocking”.

“We have the customers and the products, now all we need is legislation -- legislation that will assist with the purchase of low-emission vehicles is critical,” he said.

“Legislation like tariff and duty reductions, and financial and non-financial incentives. Incentives that will put these low-emissions vehicles within the reach of more Australians.”

Werner’s comments echo those he made in February, when he also called on the federal government to axe luxury car tax.

“We’ve talked about this before and not in isolation. There have been strong comments from a number of brands in the auto industry. These comments –embraced by the rest of the industrialised world – fall on deaf ears in Australia.

“The reason is clear. Our government is so far behind the times in terms of climate change that they probably think we are still getting around in horses and carts.

“For a developed country, Australia has shocking emissions levels -- worse than 34 other countries in the world and worse than what we would call non-industrialised or third-world countries.

“And the government continues with a policy of avoidance, rhetoric and inaction.”

BMW’s Australian boss said electrification of the country’s new-vehicle fleet would bring economic, strategic, reputational, environmental and human health benefits due to improved air quality, lower greenhouse gases and less reliance on oil imports.

“This is the technology that all major manufacturers have subscribed to, that the majority have invested in, planned for, committed to and embraced -- except Australia,” he said.

“Our government has stuck their collective heads in the sand. They’re hoping it will all go away. It’s crazy.”
Local CO2 reduction slowing
The local BMW chief’s statements follow the release of figures showing the reduction in fuel consumption of new passenger, SUV and light commercial vehicles sold in Australia last year slowed to its lowest rate in more than a decade.

According to the latest Carbon Emissions Intensity for New Australian Light Vehicles report from the federal government’s own National Transport Commission (NTC), last year Australia’s new light vehicle fleet emitted 182g/km of C)2.

This was 1.1 per cent down on the 2015 level and the lowest reduction since 2003.

Last year Australia’s average emissions for passenger vehicles was 175g/km -- 46 per cent higher than that of the average for European countries (120g/km).

The European Union has an average new light-vehicle CO2 target of 95g/km by 2021, and even the US is targeting about 105g/km by 2025.

Australia has no vehicle CO2 target, but will enforce the Euro 6 emissions standard (introduced in Europe in September 2015) for new models released from July 1 this year, and for all new vehicles sold from July 1, 2018.

Consumer preference the key
The NTC made it clear that consumer preference is one of the most important factors in affecting the national average of carbon dioxide emissions intensity for new vehicles.

“If all Australians who purchased new vehicles in 2016 had purchased vehicles with best-in-class emissions, the national average carbon dioxide emissions intensity would have been reduced to 75g/km, a 59 per cent reduction,” said the report.

The NTC said about 90 per cent of all new vehicle sales in 2016 were from 15 makes, of which Audi had the lowest corporate average emissions intensity (144g/km – just ahead of BMW with 148g/km) and Holden had the highest (222g/km).

Private Australian buyers purchased vehicles with the lowest average emissions intensity (176g/km), followed by business buyers (187g/km) and government buyers (201g/km).

The average emissions intensity for all Australian-made vehicles was 213g/km in 2016 -- up 2.3 per cent on 2015 in part because of V8 demand from Commodore buyers, which has soared to 50 per cent of production in the lead-up to the end of Holden manufacturing this October.

In the same year, the number of ‘green’ vehicles (those emitting less than 120g/km) reduced from 72 in 2015 to just 51, representing only 2.5 per cent of the market.

Last year just 65 electric cars were privately purchased in Australia (down almost 70 per cent on 2015), with 101 EVs bought by fleets – down more than 30 per cent.

To date, BMW has sold more than 100,000 electric vehicles (EVs) and plug-in hybrid vehicles (PHEVs) globally – of which just 124 were sold in Australia – and it plans to sell the same number this year alone, with plug-in vehicles forecast to account for 15 to 25 per cent of its sales by 2025.
No silver bullet
The NTC cited many reasons for Australia’s light vehicle emissions intensity being higher than in Europe, including fewer government incentives for lower emissions vehicles, relatively lower fuel prices, a lower proportion of diesel-powered engines and a preference for heavier vehicles with larger and more powerful engines.

Last year, the UK’s five best-selling vehicles were small cars, while Toyota’s HiLux ute was Australia’s top-selling model bar none, followed by the Ford Ranger in fourth.

Werner said BMW would continue to expand its plug-in vehicle range in Australia -- despite the lack of government incentives and legislation – but would not reveal what the next model will be.

Globally, BMW has committed to releasing the MINI Countryman PHEV this year, followed by the i8 Roadster PHEV in 2018, a MINI EV in 2019, the X3 EV in 2020 and the ‘iNEXT’ in 2021, all of which are under consideration for Australia.

So far BMW Australia’s plug-in range includes three i-cars -- the i3 EV and PHEV and the i8 -- and four iPerformance PHEV models: the 330e, 530e, 740e and X5 40e.

“In the face of government inertia, BMW has elected to go ahead and bring these vehicles to the Australian market -- and not just one or two, but a whole range of battery-electric, range-extender and plug-in hybrid vehicles,” said Werner/

“While the Australian government has been sleeping, the innovation of this technology has marched on and we’ve seen some remarkable developments.”

Werner said BMW’s next move in Australia would be to partner with a renewable power supplier in an attempt to silence critics of EVs in a nation powered mostly by coal-fired electricity stations.

“The topic of EVs goes hand in hand with green energy and many people have a skeptical view of EVs in a country that generates such a large amount of its energy through brown coal,” he said.

“Well we’ve heard you and while I cannot reveal details at the moment, I can tell you BMW is currently in discussions with an energy supplier that is committed to extending the reach of renewable power within the Australian grid.”