Auto industry scores government’s Fuel Efficiency Standard 7 out of 10

Matt Hobbs MTAA CEO

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The Motor Trades Association of Australia (MTAA) – the largest representative of the automotive sector in Australia – welcomes the Federal Government’s release of its Fuel Efficiency Standard impact assessment.

“The government has had to balance two extremes – the car companies and the single focused EV lobby. I cannot underestimate the difficulty in developing this standard. It has taken three governments and 12 years to reach this point. Nobody disagrees Australia needs to join the rest of the developed world with a standard to ensure we get our fair share of new technology and choice of electric vehicles,” said MTAA CEO Matt Hobbs.

“The whole industry knows putting in place a fuel efficiency standard is the right way to go. The argument is just about the fine details. We score the government a seven out of 10, so far. Some adjustments are needed in the early years, especially in the treatment of utes. I am confident we can work with the government to ensure they get a perfect mark.”

MTAA’s members are the largest providers of talent to the automotive industry. It’s vital, as the government implements a fuel efficiency standard, that it partners with industry to get the workforce in place to support the EV transition.

“As stakeholders resolve EV supply and range issues in Australia, the next challenge is to implement the required workforce. EVs are cutting-edge technology and as such need a highly trained Australian workforce. A good first step is to make more apprentices eligible for the New Energy Apprentices Program,” said Mr Hobbs

MTAA is concerned not all car companies will make the transition. The huge technology shift brings opportunities but also risks for Australian small businesses and automotive workers who can lose their investment and livelihoods at the whim of international car companies in offshore headquarters.

Australian automotive workers and small businesses need the Albanese government to have their back in this period of change with an Automotive Industry Code of Conduct to protect workers who are at the mercy of multinational companies.

“The future of the global auto industry is the industrial version of the Hunger Games – played in boardrooms far from Australia. It is imperative the government develops an Automotive Industry Code to give Australian workers and businesses a fair go,” said Mr Hobbs.

MTAA will shortly provide a detailed submission to the Federal Government on the impact of its preferred option.

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