Volkswagen Group Australia backs new federal emissions standard

Volkswagen Group Australia (VGA) has become the latest auto brand to voice its support for the country’s first National Vehicle Efficiency Standard (NVES), but like Hyundai it has called for elements of Option A to be integrated into the federal government’s preferred Option B.

In a press release issued this morning, VGA managing director Karsten Seifert said: “VGA would suggest the possibility of an NVES modelled on Option B with elements of Option A super credits for full battery-electric vehicles and plug-in hybrid electric vehicles” because “this outcome should be of the most benefit to the Australian consumer”.

As key auto industry stakeholders thrash out details in Canberra today, the government continues to take submissions on which of its three proposed options – A, B or C – should be implemented on January 1, 2025.

Each new-vehicle CO2 emissions legislation option is more aggressive in its timing and severe in its breach repercussions.

Option B has been nominated as the government’s early favourite, while the industry remains split between it and Option A, because the latter allows for a longer timeframe for car-makers to adjust to the new regulations, imposes more lenient fines for vehicles that exceed CO2 limits and proposes ‘super credits’ that would allow EVs and PHEVs to offset petrol and diesel vehicles several times over.

To summarise the key elements of Option B, car-makers would be issued with an increasingly stringent – year-by-year – fleet-average CO2 emissions target to meet across their new-vehicle range between 2025 and 2029, and heavily fined if they exceed those targets.

In contrast, auto brands that meet and/or comfortably beat their targets will receive credits that can be used to offset potential fines or traded with another manufacturers for capital, potentially reducing the price of EVs from electric-only brands like Tesla and Polestar.

The first of these targets are earmarked to be implemented on January 1, 2025 and will be pegged at 141 grams of CO2 per kilometre (g/km) for passenger cars and SUVs, and 199g/km for light commercials (including all utes), before dropping by 12.2 and 12.4 per cent per annum down to 58g/km and 81g/km respectively.

The implementation of Option A’s super credits would mean manufacturers aren’t as fined as severely while model lines and powertrains are adapted to meet the new standard, meaning current models, configurations and drive systems can live on.

Opponents of Option B, as it stands, including the Federal Chamber of Automotive Industries (FCAI), claim it would increase the prices of many of Australia’s most popular new vehicles, including large diesel SUVs and utes, thereby penalising a large number of consumers.

Although its Volkswagen brand is yet to introduce an EV in Australia, VGA has been a vocal advocate for the introduction of a local emissions standards for several years now, but that doesn’t mean the German car-maker is calling time on its best-sellers any time soon.

“This year our brands will introduce up to 10 BEV variants, including the first in this market for Volkswagen and Skoda,” Seifert said.

“Meanwhile, conventional utes, SUVs, cars and vans will remain pillars of our business for years to come.

“VGA is offering such a broad range of personal mobility choices to have the right option for each customer.”

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