Mitsubishi predicts ‘pain’ from new emissions standards

Mitsubishi says it will rise to the challenge of tough new-vehicle emissions standards to be introduced in Australia for the first time next year.

But the brand’s local chief has warned there will be pain ahead as car-makers work to significantly reduce their CO2 emissions and introduce more electrified models.

Speaking at the launch of the new Mitsubishi Triton ute – which continues with a diesel engine – Shaun Westcott acknowledged the challenges ahead but was adamant Mitsubishi Australia would meet them.

“There will be pain… but we will survive… we’re innovative,” he said, adding that “we will find a way and we will survive”.

The government’s preferred Option B within the proposed New Vehicle Efficiency Standard is expected to set the foundation for the biggest shake-up to new-vehicle standards in decades.

It calls for average CO2 emissions reductions of about 61 per cent across a brand’s fleet – something that will likely only be achieved with the extensive deployment of electrification (either hybrid or battery-electric technology).

While the Federal Chamber of Automotive Industries (FCAI) and brands including Toyota have responded cautiously to the NVES announcement, and the Motor Trades Association of Australia (MTAA) has stressed that customers must come first, Westcott indicated the proposed standards were far stricter than what the industry had anticipated.

“The options that are on the table – including B and C – weren’t on our radar initially,” he said of the tougher two of three proposed emissions standards.

Instead it was the more lenient Option A – which is not the government’s preferred option but remains part of the consultation process that ends in two weeks – that appeared to be favoured by some brands including Mitsubishi.

“That’s [Option A] what we modelled and that’s what we put forward as a proposal,” said Westcott.

“We knew that there would be more extreme versions, but without knowing what those were and what they looked like obviously we weren’t able to model them.”

Mitsubishi’s local chief said the company is busy crunching numbers “to understand what the impact is”. While some brands are well positioned, others may be forced to drop some models or buy regulatory credits to offset possible fines.

While he indicated that Mitsubishi would meet the standards, Westcott gave a blunt warning that some brands will find the standards tougher than others.

“A 60 per cent emissions reduction in five years is going to be challenging for some manufacturers,” he said.

Westcott acknowledged that some form of emissions standards was needed, Westcott reiterated a well-used industry line that Australia is very different to other car markets and has specific requirements.

“We do need a [new-vehicle emissions] standard that is reasonable, rational, logical and achievable in a way that still provides Australians with the product that they need – albeit with lower outputs from an emissions point of view.”

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