Motor industry supports commonsense decision on fuel economy standard

The chief executives of both the new and used vehicle industry associations are quoted as agreeing “the government’s decision to not proceed with the development of a regulated vehicle fuel economy standard is a victory for common sense and pragmatism”.

“Vehicle owners make rational decisions and the easiest and most effective way to influence motorists is at the pump” say the Motor Industry Association’s Perry Kerr and Imported Motor Vehicle Industry Association’s David Vinsen. “We have seen when fuel prices increase that people drive less and they also consider fuel consumption when choosing a new/second hand vehicle as evidenced by the fact that light and small new car sales now represent 50% of all registrations (up from 35% in 2004)” said Mr Kerr.

“The government has acknowledged that the price of fuel is important and has proposed that all transport fuel will bear the full environmental cost under the Emissions Trading legislation” noted Mr Vinsen.

Furthermore car companies are being driven by the governments in Europe, America and Japan to produce fuel efficient vehicles. They are responding to this pressure as evidenced by their strong commitment to develop more hybrid models, electric vehicles, and smaller fuel efficient diesel vehicles which the members of both Associations will bring to New Zealand as soon as they are released onto the global stage.

“In conclusion the new and used vehicle trades support the government’s decision to not proceed with this proposal”, say Vinsen and Kerr.

ENDS

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