*Peter
Pudney is a Senior Research Fellow in the Institute for Sustainable Systems and
Technologies at the University of South Australia. Peter has been the race
strategist and solar array designer for the Aurora Vehicles solar racing team,
and has helped design and build solar and electric cars at UniSA. He is
currently working on a project investigating the impact that electric vehicles
might have on CO2 emissions and electricity generation and distribution in
Australia.
This
article is an edited version of a personal submission made to the 2008 Review of
Australia's Automotive Industry; the views expressed are not necessarily those
of the University of South Australia.
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Passenger cars built in Australia by GMH, Ford and
Toyota have CO2 emissions that are 1.4 to 2.4 times the industry’s fleet target
for the year 2010. This means that each car built in Australia by these
companies takes Australia and the world further from meeting critical CO2
emissions targets. These cars also have 1.4 to 2.4 times the emissions of the
most efficient large cars sold in Australia.
Furthermore, cars built in Australia are not
profitable without extensive support from Australian taxpayers, in the form of
tariffs, the Automotive Competitiveness and Investment Scheme (ACIS), tax
concessions, the Automotive CRC, Commercial Ready and other grants, and
purchasing incentives for businesses and government.
On the other hand, the automotive industry employs
60,000 people in Australia, represents significant engineering and manufacturing
expertise, and earns export income. If taxpayer support were to be withdrawn
from the automotive industry, we would need to find some other endeavour for our
engineering and manufacturing sector.
But surely we can find a worthwhile alternative to
cars that can make a greater contribution to the economy, to society, and to the
environment!
In this article I will argue that:
1. Australia should stop subsidising global
automotive companies to build large, inefficient cars in Australia. Business and
governments should not be given discounts on cars, fuels or emissions.
2. We should use Australia’s engineering and
manufacturing capability to build renewable energy generation systems instead.
Ultimately, these can be used to generate the clean electricity required for
general use and to power the next generation of plug-in hybrid, battery
electric, and hydrogen cars.
3. We should implement policies that encourage -
or perhaps even compel - global automotive companies to sell a mix of cars that
will help us stabilise CO2 emissions, and other pollutants, at a sustainable
level.
We should be supporting the solution, not the
problem.
Australia should stop subsidising inefficient and unprofitable cars
In the past, the Federal Chamber of Automotive
Industries (FCAI) has set voluntary fuel consumption targets for new cars sold
in Australia. The target for 1983 was 9.0 L/100 km. The target for 1987 was 8.5
L/100 km. Both these targets were missed. The actual fuel consumption for new
cars sold in Australia during 1987 was 9.5 L/100 km.
The FCAI has set a voluntary fuel consumption
target for 2010 of 6.8 L/100 km, which corresponds to about 150 g/km of CO2.
This target is high compared to European targets. Despite this, cars built in
Australia are not even close to meeting this target. In 2007, fuel consumption
and CO2 emissions from Australian-built vehicles were still well above the
voluntary fleet targets set for 1987, twenty years earlier, and were 1.4 to 2.4
times the targets for 2010. Each Australian-built vehicle sold takes us further
from the target.
The Australian Green Vehicle Guide (June 2007)
gave the following CO2 emission ranges for Australian-made vehicles:
Model |
CO2 g/km |
min |
max |
Ford Falcon |
243 |
356 |
Ford Fairlane |
248 |
316 |
Ford Fairmont |
243 |
316 |
Ford Utility |
244 |
363 |
Holden Calais |
280 |
344 |
Holden Caprice |
280 |
344 |
Holden Commodore |
259 |
348 |
Holden Statesman |
280 |
343 |
Holden Utility |
260 |
348 |
HSV (all models) |
334 |
359 |
Toyota Aurion |
233 |
233 |
Toyota Camry |
210 |
233 |
The Greenwheels web site (April 2007) lists
passenger vehicles available in Australia that are within 25% of the best in
class. None of these are Australian-built.
The best in each class are:
Class |
CO2 g/km |
Model |
2-seater |
112 |
smart fortwo 52kW Coupe |
small |
110 |
Fiat 500 Sedan |
medium |
106 |
Toyota Prius Hatch |
large |
150 |
Skoda Octavia Sedan |
offroad |
174 |
Suzuki Jimny with VVT Wagon |
ute or light truck |
166 |
Proton Jumbuck Utility |
6+ seats |
155 |
Citroen C4 Picasso Wagon |
van |
139 |
Renault Kangoo Van |
All of the large global automotive companies build
cars that can meet the 2010 emissions target, but they do not build them in
Australia. For Australian-built models to meet the 2010 target, the CO2
emissions would have to be decreased by 40-70%.
It is not necessary that every car sold in
Australia meet the target, but every car sold that is over the target makes
achieving the target more difficult. Australia will not meet the 2010 target of
150 g/km CO2, which is not as stringent as European targets, without either an
unprecedented decrease in the emissions of Australian-built cars, or a large
decrease in the use of Australian-built cars.
As well as being inefficient, Australian-built
cars are also unprofitable. The Australian automotive industry is currently
supported by tariffs, the Automotive Competitiveness and Investment Scheme
(ACIS), tax concessions, the Automotive CRC, Commercial Ready and other grants,
and government purchasing preferences.
Over 75% of Australian-made cars sold in Australia
are bought by business and government fleet purchasers. Some fleet purchasers
have policies that require them to buy Australian-made vehicles. All are given
incentives through the taxation system and other rebates that offset the true
costs of buying and operating inefficient cars.
Why are we supporting an industry that is building
cars that are unprofitable, cars for which there is decreasing market demand,
and cars that are hindering our progress towards achieving important CO2
emissions reductions?
The Australian Government should withdraw support
for the manufacturing of inefficient cars in Australia, including discounts on
cars, fuels and emissions for business and government. We should find something
beneficial to do instead.
Redeploying Australia’s expertise
Kevin Rudd has said that he does not want to be
Prime Minister of a country where we don’t make things anymore. Does he want to
be the Prime Minister of a country that makes some of the most inefficient cars
in the world?
Abandoning support for the building of inefficient
and unprofitable cars does not necessarily mean abandoning the Australian
automotive industry. If it is possible to manufacture cars with whole-of-life
emissions less than those of imported cars, this should be supported.
Alternatively, perhaps our focus should shift from complete vehicles to
innovative vehicle systems. In particular, reducing the mass of vehicles and
vehicle systems can have a significant impact on vehicle energy use.
Ultimately, however, Australia may be too small to
compete in the manufacture of efficient cars or vehicle systems. We need to find
something else to be good at - something that has greater benefits for the
economy, for society, and for the environment.
An obvious candidate is renewable energy.
It is almost certain that future, cleaner vehicles
will have electric drive systems. Plug-in hybrid cars and battery electric cars
will be recharged from the electricity grid. To achieve significant reductions
in transport emissions, the extra electricity required to recharge these cars
will have to be generated from new renewable energy sources, such as wind,
photovoltaic and geothermal energy. Should hydrogen ever become a viable
automotive fuel, clean energy sources will be required to generate the
hydrogen.
If we are to stabilise CO2 emissions at an
acceptable level, the world will require a lot of renewable energy. Germany has
already established a thriving renewable energy sector. Australia could also be
a major contributor to a global renewable energy industry.
Meeting transport emissions targets
Ideally, Australia’s transport emissions target
should be expressed as an overall emissions rate, in tonnes per year. The
emission rate for each new vehicle is only one factor that effects overall
emissions. The other important factor is the total number of vehicle-kilometres
driven each year. Reducing the emissions rate for each new vehicle will be
particularly important if the total number of vehicle-kilometres travelled in
Australia continues to increase each year. Of course, reducing the overall
distance travelled by cars will also help reduce overall emissions.
Past voluntary fuel consumption targets set by the
Federal Chamber of Automotive Industries (FCAI) have not been met. To have any
hope of meeting future vehicle emissions targets, we need to make drastic
reductions to the number of inefficient cars being used in Australia. Removing
subsidies and other incentives that externalise the true costs of buying and
operating inefficient cars will help us meet critical emissions targets.
Removing subsidies and other incentives that
encourage the use of inefficient cars may not be enough. We should also
implement policies that encourage or perhaps even compel global automotive
companies to sell a mix of cars that will help us stabilise emissions at a
sustainable level. Requiring vehicles sold in Australia to have emissions
within, for example, 25% of the ‘best in class’ could result in significant
improvements to fleet emissions and significant pressure on manufacturers to
reduce the emissions of the vehicles they build. The Greenwheels web site lists
such ‘low emission vehicles’.
Other issues
The interim Discussion Paper of the Review of
Australia’s Automotive Industry 2008 says:
Will the steady consumer drift towards smaller
vehicles, evident over recent years, continue or even accelerate?
Oil is a finite resource. It is becoming harder to
find and more expensive to extract. World demand for oil is also increasing. It
is almost certain that oil prices will continue to increase, and at an
increasing rate, which will increase the demand for more efficient vehicles.
Until now, we have not paid for our CO2 emissions.
This is going to change, further increasing the demand for more efficient
vehicles. Current alternative fuels are not much cheaper or cleaner than petrol.
Vehicles are going to have to become lighter and more efficient.
The interim Discussion Paper of the Review of
Australia’s Automotive Industry 2008 says:
. . . increasing concern over CO2 emissions and
fuel economy have shaped consumer tastes and led to increasing demand for
alternative fuel or hybrid vehicles, and a drop-off in demand for what are
perceived as ‘petrol-guzzling’ larger cars.
The problem is not one of perception. Large
cars - particularly the locally-built large cars - really do use significantly
more fuel than small cars and cars with advanced drive technologies.
The interim Discussion Paper of the Review of
Australia’s Automotive Industry 2008 says:
Australia has become a centre of excellence for
the design and engineering of some global platforms, such as rear wheel drive
architecture.
Who cares? Rear wheel drive has some advantages
for towing, racing and for ‘drifting’, but whether a car is front wheel drive or
rear wheel drive is irrelevant for most driving. Front wheel drive is safer for
drivers of average ability, and performs better on slippery roads.
The Green Car Innovation Fund will be wasted if it
produces vehicles that are cleaner than current Australian-built vehicles but
still well behind best practice.
The interim Discussion Paper of the Review of
Australia’s Automotive Industry 2008 says:
Do Australia’s fuel standards and the
Australian Design Rules inhibit imports of fuel efficient vehicles?
Brazil has been running cars on ethanol for 30
years, and has over four million cars running on 100% anhydrous ethanol. In
Australia, the proportion of ethanol allowed in fuels is limited to 10%.
Australia did not allow the pictured Reva electric
car to be imported. In much of the world, vehicles like the Reva electric car
are classed as ‘heavy quadricycles’, and not subjected to the more stringent
standards applied to full-size, high-speed passenger vehicles.
Australian road-worthiness requirements prohibit
the import of small efficient vehicles such as the Reva, Twike, CityEL and Open
Street, all of which are used in Europe. Many small electric scooters are
prohibited, and the standards for electric-assist bicycles are not compatible
with those in other parts of the world (USA, Europe, Japan). However, slow
mopeds and cyclists over the age of twelve are expected to mix with other
traffic.
Safety features can lead to weight increases,
which increase energy use. However, heavier vehicles also contribute more energy
in a crash - you are more likely to be killed or injured if you are hit by a
heavy car than if you are hit by a light car.
Many small European cars have higher safety
ratings than the larger locally built cars.
In general, larger vehicles are safer in a crash
because they allow deceleration to occur at a lower rate over a greater
distance. But there several studies that have shown that smaller, lighter cars
are less likely to be involved in crashes, and contribute less to the overall
road fatality:
-
Sparrow (1985) shows that the small Japanese ‘Kei’
cars had a slightly lower accident rate and caused fewer accidents;
-
Wasielewski (1983) found that drivers of small
cars take fewer risks;
-
Tay (2002) concluded that non-agressiveness is
more important than crashworthiness in determining the overall road
fatality.
References
Most
of the information used in this article is from the interim Discussion Paper and
Background Paper from the Review of Australia’s Automotive Industry 2008:
http://www.innovation.gov.au/automotivereview/Pages/ReviewofAustralia’sAutomotiveIndustry.aspx
Information
on the emissions of vehicles sold in Australia is from the Australian Green
Vehicle Guide and the Greenwheels web sites:
http://www.greenvehicleguide.gov.au
http://greenwheels.com.au
Information
on the German renewable energy sector can be found here:
http://www.german-renewable-energy.com/
http://en.wikipedia.org/wiki/Renewable_energy_in_Germany
References
on the merits of front wheel drive can be found on Wikipedia:
http://en.wikipedia.org/wiki/Rear
wheel drive
Sparrow,
F. T. 1985, ‘Accident involvement and injury rates for small cars in Japan’,
Accident Analysis and Prevention, vol. 17, no. 5, pp. 409–418.
Tay, R. 2002,
‘Tin cans or assault vehicles’, Journal of the International Association of
Traffic Safety Sciences, vol. 26, no. 2, pp. 92–97.
Wasielewski,
P. 1983, Do drivers of small cars take less risk in everyday driving?, General
Motors Research Laboratories.
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