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Kia reiterates industry call for local emissions standards, road tax reform

One of Australia’s largest car manufacturers is pushing the Federal Government to formalize emissions standards for new cars and rethink how roads are delivered as the world transitions to electric cars. .

Kia Australia chief executive Damien Meredith said the brand believes “the government should have a CO2 management policy”.

Mr. Meredith also said “we need [charging] infrastructure if this will work”, but “consumer confidence is growing in electric vehicles”.

Mr Meredith said: “We believe that is happening and we want to be an important part of the electrification process in Australia.

Kia boss also follows in the footsteps of FCAI boss Tony Weber by pushing the new government to consider reform how roads are funded in Australia.

Kia has been hit hard by Australia’s lack of emissions standards. Our Supplies of the New EV6 still extremely short (500 cars by 2022), and Niro will flood into Australia at a rate of just 75 vehicles per month, in part due to strong demand in markets with emission limits.

Mr Meredith is not alone in calling for European-style emissions regulations in Australia, as well as promoting toll collection.

The highest-level body for car manufacturers in Australia, the Federal Chamber of Automotive Industry (FCAI), has called for binding Federal Emission Reduction Program on the back of the recent election.

Such a scheme would force automakers to pull their average vehicle emissions below an agreed limit, backed by fines if that target is not met. The limit will get tighter and tighter as the years go by.

Australia is falling short of hybrid, plug-in hybrid (PHEV) and electric vehicle (EV) options relative to demand, as long as it waits for new cars across most brands.

The FCAI says the formal regulations will give car companies the tools they need to lobby their headquarters to offer more low-emissions (or zero-emissions) vehicles.

Currently, automakers send the majority of their electric vehicles to markets like Europe, where penalties for failing to meet emissions targets can lead to hefty fines. Australia risks becoming a ‘dumping ground’ for older, dirtier engines and technology, says former Volkswagen Group Australia boss Michael Bartsch.

His replacement, Paul Sansomtold CarExpert the introduction of emissions standards “completely changed the game, it really did”. Like Kia, the Volkswagen Group has also been stymied in its efforts to bring electric cars to Australia.

In response to the lack of federally mandated targeting, the Australian auto industry establish a voluntary CO2 reduction plan by 2020. This has no real teeth, but serves two purposes: public relations and becomes the policy template for any receptive government.

What about road construction costs? FCAI has repeatedly lobbied for road usage fees – essentially a scheme where motorists pay tolls by the mile to fund roads instead of traditional subscriptions and fuel consumption – as the world shifts to electrical energy.

“[A road user charge should be] technology-neutral, nationwide, and eliminate large amounts of taxes on both motor vehicles and drivers,” said FCAI CEO Tony Weber.

“That includes the luxury car tax, the tariffs to the extent they remain, the stamp duty, the registration fee, the license renewal fee – there’s only one tax, and let’s sit down with the government and design it. so it can be done in a way that it doesn’t recede and doesn’t burden people living in regional and regional areas of Australia. “

Several states have announced that they are implementing road user tolls, though only for electric and hybrid vehicles.

For example, Victoria introduced a controversial road use fee to make up for missing fuel sales as more and more drivers switch to internal combustion vehicles.

The South Australian government has also introduced such a tax before, but the newly elected Labor government led by Peter Malinauskas move to repeal state mileage fees.

THAN: Victoria’s ‘worst electric car policy in the world’ is stamped out
THAN: Increasing tax threshold for luxury cars, FCAI pays “poor tax”
THAN: Q&A with Tony Weber, CEO of the pinnacle car industry organization FCAI
THAN: Why the car lobby wants more CO2 regulation from the new government

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