“Intriguing challenge:” Hyundai breaks ranks to support vehicle efficiency standard

Hyundai Motor Company Australia has broken ranks with other major legacy car makers and announced its support for the federal government’s New Vehicle Efficiency Standard (NVES), but with some caveats.

“We see this as an intriguing challenge, and we look forward to responding to the Government’s call for feedback” said Hyundai Australia Chief Operating Officer, John Kett in a statement released on Friday.

“We think we will soon have a world-class Efficiency Standard in Australia and we’re excited by that.

“With the Standard in place, Hyundai dealers will still have great vehicles to sell, customers will have great vehicles to drive, and we will be doing our bit to reduce emissions in line with Australia’s commitment to decarbonise.” said Kett.

Hyundai supports Option B but with caveats

Hyundai says while it supports the government’s “preferred” Option B of the NVES proposed two weeks ago, the automaker indicated it would push for changes to some “minor aspects” which sources say will be outlined in Hyundai’s submission to the government’s Impact Analysis which is due on March 4.

“We only have five years to catch up to other advanced markets which have had efficiency standards in place for decades, and that’s a challenge. We see merit in the Government’s preferred Option B, and with some minor aspects of Option A introduced to it, we can hit the proposed target and bring accessible, affordable and efficient vehicles to the market.” said Kett.

FCAI boss under fire for anti-NVES statement

Hyundai’s general support for the NVES is in contrast with the Federal Chamber of Automotive Industries (FCAI) CEO who recently came out against the NVES, saying the new standard would would cost $38 billion and told journalists the industry lobby group was considering running an anti-mining tax style fear campaign against the new pollution standard.

The figures quoted by FCAI boss Tony Weber were broadly rejected by industry experts and even contradicted the FCAI’s own submission to the policy last year.

“It’s up to FCAI to explain the clear contradiction in their two positions,” minister for climate change and energy Chris Bowen said at the time.

It seems the the fear campaign around NVES has already started with Nationals Senator Matt Canavan writing an opinion piece for the Courier Mail today suggesting that the NVES will “add $9,000 to the cost of the most popular cars bought in Australia”.