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Toyota tells dealers: We are okay
GoAuto News, Sandringham  by John Mellor
21 Feb 2024
General News - Page 33 - 862 words - ID 2039288428 - Photo: Yes - Type: Car Review - Size: 537.00cm2

Market leader assembles dealers and reassures them they have a future under NVES

TOYOTA has become the first car-maker to address its dealers on how the company will fare under the Albanese government's New Vehicle Efficiency Standard (NVES) saying that it will be able to supply dealers with the right mix of vehicles to meet the NVES emissions targets.

Dealers have passed on to GoAutoNews Premium that Toyota got its dealers together and the conversation went along the lines of: Toyota dealers have nothing to worry about.

One person familiar with the meeting said: "We were told: 'Everyone relax. Your future is secure. There is no problem for Toyota dealers. It is business as usual'.

Toyota assured dealers that it has the right mix of vehicles coming and that under the NVES rules there were a number of years to get the balance right in terms of balancing low-emission vehicles with larger ICE vehicles.

It was reported that Toyota said: "What we're going to do is we'll provide you with lowemission stock that will then allow you to sell the ICE vehicles as you see fit." The person did say, however, that Toyota said that its analysis indicated that if they were some other brands, "they would be very worried".

The person said they suspected Toyota would be in a position to supply its dealers with LEVs at a loss until such a stage that the market demand for EVs truly does catch up and that electric vehicles are the consumer vehicle of choice.

As an indicator of how determined Toyota can be in establishing new technology, the company some years ago said that it made a loss of more than $1 billion on the Prius before it was accepted in major markets and became profitable.

Meanwhile the various motor dealer and trades associations have been busy assembling data and views to build their response to the NVES rules.

The MTAA organised a hookup with OEMs representing 20 brands to brief them on how it was developing responses to the government and that it was said to be making "good progress".

In Victoria more than 100 members of the Victorian Automobile Dealers Association met with VACC CEO Geoff Gwilym in an extraordinary meeting where a sub-committee of the leading dealers from Victoria and Tasmania was appointed to help advise the MTAA submission.

One directive of that meeting was to call for an urgent polling of members regarding their ZLEV stock.

Michael McKenna, industry policy advisor of the VACC, told GoAutoNews Premium that the poll was especially interested in current stock levels of ZLEVs, their ongoing holding costs and the reasons the dealers believe for EV demand to have fallen off.

"We really want to know why they think they are not selling their EVs. We think we know but we really want to know what is going on in the showrooms because the key takeaway from after they came out of the recent subcommittee meeting is that people when they come into the dealership, are not even really looking at the EVs on the showroom floor.

"They're not even opening the doors on them anymore to sit in and get a feel for what they are like inside." In another development, Hyundai Motor Company Australia (HMCA) said it welcomes the federal government's impact analysis for the NVES.

HMCA said it is committed to working with government and industry to ensure Australian consumers get access to the widest range of affordable low- and zeroemission vehicles.

Hyundai Australia CEO John Kett said: "We see this as an intriguing challenge and we look forward to responding to the government's call for feedback. 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," Mr Kett said .

"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." Volkswagen Group Australia said in a statement: "Globally Volkswagen Group is committed to complying with the Paris Climate agreements with the goal of becoming a carbonneutral company by 2050." VGA's managing director Karsten Seifert said that Volkswagen is "driving toward majority all-electric vehicle sales in Europe by 2030. In the US and China, the company has set itself ambitious BEV targets in the same period".

"Volkswagen Group Australia has long been among the voices calling for the introduction of binding auto industry standards that benefit Australia.

"At this time, 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.

"This outcome should be of the most benefit to the Australian consumer."

Caption Text:
Geoff Gwilym

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