Australia Could Delay Tougher Emissions Standards

The Australian government reportedly is preparing to delay tougher emissions regulations for new vehicles after manufacturers warn local fuel standards are not high enough to support the new targets.

The government wanted to begin phasing in Euro 5 emissions standards from 2012 and tougher Euro 6 standards beginning 2016.

But The Australian newspaper says auto makers are concerned about the massive investments that would be required to meet the new rules and say the timetable could mean some cars imported from Asia would have to be pulled from the market.

The newspaper says the industry also is warning the early adoption of the emissions standards would jeopardize the future of domestic operations such as Ford Motor Co. of Australia Ltd.’s engine plant in Geelong, Victoria.

“Significant investments would be required to upgrade local manufacturing to enable locally produced vehicles to meet Euro 5/6,” the Federal Chamber of Automotive Industries says in a government filing. “The alternative is closure of local manufacturing with accompanying loss of jobs.”

Now, Transport Minister Anthony Albanese has indicated the introduction could be delayed.

Albanese tells attendees at an annual FCAI dinner the government is committed to improving health through tougher vehicle emissions regulations.

“We want to see Euro 5/6 standards introduced in Australia as soon as practicable,” he is quoted as saying in a government transcript of the speech, adding he recognizes the industry has reservations about timing.

“The government is willing to discuss adjustments to the timeframe with the FCAI, which could help to minimize compliance costs while maintaining air-quality benefits,” he says. “But the government expects industry to show leadership and embrace the purpose and intent of the change and not substitute prevarication for action.”

Ford Australia’s Victoria plant produces engine blocks for Territory.