NVES hits Ford Everest and Isuzu MU-X

The cleanest and cheapest versions of Australia’s top-selling large SUV, the Ford Everest, will be withdrawn from sale within months because of the new national CO2 reduction standard.

And the newly updated Isuzu MU-X, which was the second-best-selling large SUV in 2024, is expected to soon go through the same cull, as the New Vehicle Efficiency Standard (NVES) begins to bite and brands realise some models are unsustainable.

At both Ford and Isuzu the cull applies to 4x2 versions of the ladder-frame turbo-diesel wagons that are classified as ‘MA’-category passenger vehicles under Australian Designs Rules because they don’t have 4x4 transmissions.

That means they are classified by NVES as Type 1 that imposes lower CO2 targets than Type 2, which is where ‘MC’ 4x4 off-road vehicles are allocated.

The other logical ladder-frame 4x2 victim of the NVES is the LDV D90, which is just moving to a new petrol-only generation. But importer Ateco Automotive says it has no plans to adjust or withdraw its line-up, which offers two 4x2 models.

Other ladder-frame vehicles such as the Toyota Fortuner and Prado are only sold as 4x4s, while the Mitsubishi Pajero Sport 4x2 was culled from the range in 2024.

Ford has confirmed it is axing the entire line-up of rear-wheel-drive Ambiente and Sport Everests from the end of May production.

“Being classified as a Type 1 vehicle means that 4x2 variants of Everest will be subject to more stringent restrictions, and therefore higher penalties, from July 1,” Ford Australia spokesperson Ben Nightingale confirmed to carsales in an emailed response to questions.

“There are a number of factors that go into making these decisions. One of those are penalties. Based on all of these considerations, 4x2 variants will be phased out of the line-up.

“It’s unfortunate for our customers that we’ve made the call to remove 4x2 variants from the Everest line-up, but we’re a business and we have to make commercial decisions.

“What it will do is allow us to focus on our four-wheel-drive line-up, which has been extremely popular with customers, demonstrated by Everest being number one in its segment in 2024.”

It’s understood Isuzu has communicated to dealers that 4x2 versions of the MU-X will be culled, with perhaps one 1.9-litre model left in the line-up. Four 4x2s are currently offered.

Asked for an official statement, Isuzu Ute Australia responded:

“At this point in time, we are unable to comment on specifics relating to future model plans, but we do appreciate that the CO2 targets will be challenging for IUA and the majority of the industry.

“However, we equally recognise the importance in continuing to provide Australians with a choice of 4x2 and 4x4 SUVs to suit their needs that is fit for purpose and meets all regulatory requirements.”

The NVES was introduced on January 1 and officially starts measuring vehicles’ CO2 emissions on July 1. Brands that exceed their total CO2 limit will have fines levied at a minimum rate of $50 per gram per vehicle from 2028.

The automotive data analysis experts Blue Flag estimated the auto industry could accrue $2.8 billion in fines in 2028.

The NVES is designed to gradually strangle internal combustion engines by lowering CO2 emissions limits and therefore encouraging brands to bring in more low- and zero-emissions vehicles.

Ford will introduce the Ranger PHEV, E-Transit Custom and Transit Custom PHEV in 2025. However, it has also reversed a decision to bring the fully electric Puma Gen-E to Australia.

Isuzu has mild hybrid, plug-in hybrid and EV powertrain options under consideration.

Take a look at our full NVES explainer for more information.

Ironically, the 4x2 versions of these ladder-frame SUVs consume marginally less fuel and therefore emit marginally less CO2 than their 4x4 relations, but they command only a small percentage of overall sales (4x4s account for around 90 per cent).

They would accrue fines for Ford and Isuzu because they won’t meet the tougher Type 1 emissions levels and don’t have the sales volume to balance out the economic ledger.

All this means the structure of the NVES has resulted in the most efficient and affordable ladder-frame diesel utes leaving the market, while more expensive and higher-emitting 4x4s continue on.

The base model Everest Ambiente 4x2 with a 2.0-litre biturbo diesel engine costs $54,240 plus on-road costs (ORCs) and emits 187g CO2/km. The 4x4 version costs $59,240 plus ORCs and emits 190g CO2/km.

The base-model Isuzu MU-X LS-M 3.0-litre 4x2 costs $50,400 plus ORCs and emits 206 grams of CO2 per km according to the official Australian Design Rule rating the NVES uses as a guide for credits and penalties. The equivalent 4x4 costs $56,400 plus ORCs and emits 220g CO2/km.

Officially the 1.9-litre LS-M emits the same 196g CO2/km in both 4x2 and 4x4 drivetrains, but the former is worse off because of the tougher emissions targets it must attempt to meet.

The auto industry lobbied government to have 4x2 ladder-frame SUVs join their 4x4 siblings in Type 2, but that has so far been rebuffed.

A change of government at the next federal election would likely result in this campaign being renewed.

“Ford made, and continues to make, representations to government on a variety of topics,” said Nightingale.

“We recognize the importance of an emissions scheme for the country, and we’re continuing to engage with industry and the government to make sure our voice is heard when it comes to creating a supportive ecosystem.”

As reported by carsales last week, the Blue Flag study published by the Motor Trades Association of Australia nominate Ford and Isuzu among the brands that will struggle to meet lowering NVES CO2 targets.

MTAA CEO Matthew Hobbs told carsales the withdrawal of the Everest and MU-X models was to be expected.

“Car companies are moving swiftly to adjust to the NVES,” he said. “Frankly that is the point of putting the policy in place – to force change.

“Already we are seeing companies make changes to their line-ups in Australia so they can compete.

“The issue with body-on-frame 4x4s which have a 4x2 is that the different treatment of basically the same car puts the 4x2 in the cross hairs for deletion.

“The unfortunate reality is there are variants that will likely cease to exist going forward.”

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au