Toyota boss discusses FES submissions

TOYOTA Australia has offered its viewpoint on the more than 1200 submissions made to the federal government’s consultation process for the introduction of a new Fuel Efficiency Standard (FES).

Speaking to media gathered at the Toyota Showcase event in Melbourne this week, Toyota Australia vice president of sales, marketing and franchise operations, Sean Hanley, said the Japanese importer would continue to strive for a multipronged approach to achieving an emissions reduction.

“There is a lot of work to do, and I know the government is working on that (FES) diligently. Obviously, we support a fair and reasonable fuel efficiency standard that is technology agnostic and that understands the requirements of the Australian market,” he explained.

“We are conscious of the FES; we must be. But are we concerned (about the impact it may have on the brand)? Well, not really. Being a global company, we have the repertoire of product so that if we need to move, we can move (into other technologies).

“But we simply don’t want to leave anyone behind on this journey. It’s not that we’re opposed to (a FES), we’re certainly not. We just want to get to a position where it’s fair for the Australian motoring public for what they do with their cars.”

Mr Hanley said he believed it would take more than a switch to battery electric vehicles to solve the issue of CO2 emissions, stressing that, in Australia particularly, a mix of technologies is an important factor in getting to the targeted end point.

“I think that we’re making in-roads … but I have no idea why our submission wasn’t included in the 1200-odd published publicly. We made an FES submission, and it certainly wasn’t withheld at our request,” he emphasised.

“The timeframe, of course, is totally out of our control, but we are ready. We’re ready for whenever that day comes, and we’ve been talking with our dealer partners and within our organisation about the need for an FES for a long time.

“We don’t debate the need to get to carbon neutrality. We just debate how and when to get there. We have been invested in it for many years … But it must be a target that is affordable, practical, and that doesn’t leave people behind. That’s all we ask. That’s all we’ve submitted.”

Mr Hanley went on to explain that while Toyota does have the ability to ramp-up driveline technologies to suit requirements, unexpected and dramatic changes brought about by the FES, or by changes to BEV subsidy plans, may catch the importer unaware.

“We may have to move quicker on some things, depending on the FES outcome. But when you have a look at our portfolio … our technologically agnostic approach, our diversified powertrain approach, and our determination to take everyone along on the journey, I don’t think there would be a big impact on our sales,” he added.

“(That said), it is a real risk. We see in other parts of the world (that) when incentives are taken off BEVs, sales drop off quickly. We also must be careful because that can have a big impact on resale values and confidence in the market.

“People (OEMs) are moving abruptly on pricing at the moment as more volume is becoming available. There are cars sitting in yards that people must dispose of, so resale value suddenly becomes deeply important to customers who realise there are now thousands of cars on the market (and that can affect the resale value of their own car).

“I’ve always believed that while I understand incentives and carbon credits – which we do support, by the way – will accelerate acceptance and the take-up of EVs, we are a car company that understands over the coming years, we must stand on our own two feet.

“We must be sustainable in what we produce, how we bring it to market, and, based on what the customer demand is, we must be able to be sustainable in that world. We would never rely wholly and solely on government subsidies for our future because we all know that subsidies come and go.

“That’s exactly why a multipronged approach is right for Toyota. It’s right for this industry. And more and more other OEMs are now starting to recognise that it is right for the industry.”