TOYOTA Australia has contacted GoAutoNews Premium asking that we set the record straight following our recent report Toyota tells dealers: We are okay. The report followed dealer meetings in which Toyota brought retailers up to date with its business plans.
At the most recent of these meetings, discussion emerged where retailers sought clarification on their futures under the planned CO2 emission rules contained in the New Vehicle Efficiency Standards (NVES).
People familiar with the meetings reported to GoAutoNews Premium that the message was positive but Toyota says that the article did not provide the total picture.
In an email to GoAutoNews Premium a company spokesman said: “While we understand the conclusions you have drawn are based on the comments provided to you, our view is that some of the comments lack context and therefore paint an incomplete and misleading picture. See earlier article
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“We would appreciate the opportunity to clarify our position.”
Sean Hanley, vice president sales, marketing & franchise operations said in a statement to GoAutoNews Premium: “Toyota Australia recently held a series of dealer meetings where we took the opportunity to reassure our dealers about their future in a rapidly changing world.
“In doing so, we again made it clear that we welcome the introduction of an ambitious mandatory fuel-efficiency standard. This will have a direct effect on the vehicles that consumers choose to purchase and drive, encouraging access to vehicles with lower and zero CO2 tailpipe emissions technologies.
“However, regarding the Government’s current preferred NVES option (Option B), the suggestion that we told dealers they have “nothing to worry about” or that it is “business as usual” is an unfortunate misinterpretation or misunderstanding of our position.
Mr Hanley said that Toyota understood that the government was trying to do the best it could under challenging circumstances. But he said the current NVES proposal was extremely ambitious and needed to be more calibrated to the requirements of the Australian market. He said, as it stands, it carried the unintended risks of leaving large numbers of Australians behind in outdated vehicles.
“We told our dealers, we have several passenger vehicles in our current fleet and in our product-planning pipeline that can meet the strict regime proposed in Option B.
“Equally, we know there are huge challenges, especially with commercial vehicles and larger SUVs that cannot achieve the set targets in the timeline communicated.
“These and similar vehicles from other manufacturers face substantial financial penalties from as soon as January next year, potentially leading to price rises or companies rationalising their product offerings.
“This would have a huge impact on the people who rely on such vehicles for their livelihoods and their lifestyles – not just tradies, but also farmers, families, remote-area workers, and many more.
A perverse consequence of this scenario would be that customers simply hold onto their existing vehicles for much longer than normal, therefore defeating the purpose of the proposed standard.
Sean Hanley
“Last year, the three best-selling vehicles in Australia were diesel-powered utes. They remain popular because they meet the work and lifestyle needs of a broad cross-section of Australians while being practical, capable and affordable. These are also the requirements for people seeking to reduce their carbon footprint.
While BEV technology is improving rapidly, it is not yet practical, capable or affordable for mass-market commercial applications anywhere in the world.
There are some vehicles available, but required attributes such as driving range are greatly diminished when towing or carrying loads for example.
“This is the market reality and truth. It’s an issue for the industry as a whole – and it matters greatly because efficient vehicles are effective only if they are sold in large numbers and achieve widespread use.
“This has been our experience with delivering more than 20 million hybrid-electric vehicles to global customers, including 400,000 in Australia.
“Our role as a market leader and an industry leader is to help change consumer behaviour and reduce carbon emissions. Our long history of selling hybrids in Australia since 2001, indicates that there is an education piece needed around the adoption of new technologies.
“This confirms the value of Toyota’s multi-pathway approach that’s designed to help motorists as they understand and engage with BEVs.
“We are continuing to invest tens of billions of dollars into vehicles with low and zero tailpipe CO2 emissions.
“We reiterate our support for a NVES that is ambitious, calibrated to the Australian market and leaves no-one behind.
“We are continuing to model the impacts of the proposed NVES and will provide more details in our response to the government, which is due by March 4,” Mr Hanley said.
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By John Mellor
