FCAI welcomes CO2 strategy for 2020

The Federal Chamber of Automotive Industries (FCAI) has applauded the government for opening up discussion on greenhouse gas emissions targets for 2020.

Represented by Chief Executive Tony Weber, the FCAI was one of the key stakeholders attending a get-together hosted by the government earlier this week.

"To make a real and significant improvement in CO2 emissions from private transport, a whole-of-Government approach is needed," Weber was quoted saying in a press release issued by the FCAI subsequently.

"Environmental Policy for light vehicles must take into account a range of matters, including vehicle technology, alternative fuels and energy platforms, driver behaviour, infrastructure improvements to reduce congestion, CO2 taxation and the need to reduce the age of the in-service fleet.

"We look forward to continuing to work with the Government to facilitate a complete and considered discussion of this complex issue."

Mention of reducing "the age of the in-service fleet" is a clear indicator that the Chamber will not back down from its position on parallel imports.

The FCAI is using CO2 emissions targets as an argument for denying parallel importers freer access to the Australian market, an argument that might not hold much water with the current government. Loudly promoting the fact that light-vehicle emissions in Australia have dropped by 22 per cent over the past 10 years, the FCAI may find in future that the rate of decline is even faster once car companies stop building cars locally.

More efficient cars from abroad – either imported in parallel or through factory-appointed distributors – will likely offset our historically heavy dependence on large-capacity six-cylinder and V8 cars manufactured here.

Even if the government should set draconian targets for the period after 2020, without a manufacturing industry in the country, it becomes a relatively minor product-planning challenge for the local industry, rather than a costly, labour-intensive manufacturing program.

But if we're reliant on imports rather than locally-built cars to maintain the steady decline in automotive CO2 emissions after 2017, we're effectively shifting the burden of R&D for the future to companies based overseas. And some of those companies are beginning to object.

A report in Automotive News Europe has revealed that ACEA (European Automobile Manufacturers' Association) has commenced lobbying the European Union to delay the introduction of legislation that would require car manufacturers adhere to fuel economy testing parameters closer to those experienced in the real world.

Some of the loopholes the European Commission wants to close include taping up car doors and windows, or running a test cycle on an "unrealistically smooth surface". For its part, ACEA – the European equivalent of the FCAI – "cannot envisage vehicle testing beginning before 1 January 2020."

"When considering all the issues that have to be addressed in finalising the work, it becomes clear that unrealistic deadlines for implementing WLTP (real-world testing) simply cannot be rushed into," ACEA said in an emailed statement.

The ACEA's push for the implementation of this legislation to be delayed closely follows a similar instance, with German manufacturers mounting a convincing case to delay the imposition of a 95g/km CO2 limit from 2020.

Whatever the target the federal government sets for car companies from 2020 – if any – it's hard to believe it will be 95g/km... but stranger things have happened.