Are diesel tow vehicles doomed?

Owners of big caravans and other large trailers requiring heavy-duty tow vehicles can relax... for now!

Toyota has made it clear its popular diesel models such as the top-selling HiLux and LandCruiser are safe no matter what tough new emissions levels are eventually introduced here.

But in a rare display of public lobbying clearly designed to protect its lucrative domination of the Australian SUV and utility market, the conservative automotive giant has made it clear it wants Australia to move away from EU emissions standards and adopt North American regulations that allow higher consumption and emissions for larger vehicles.

Speaking at this week’s new-generation Corolla launch, Toyota Australia sales and marketing chief, Sean Hanley, moved to debunk “recent commentary” that suggested tougher emissions targets would kill off the diesel vehicles Toyota sell.

“Let me assure you that will not happen,” he said.

“Our plans as far out as we can see include continued strong demand and sales of vehicles such as HiLux and LandCruiser.”

Hanley made it clear Toyota wants to avoid a blanket 105g/km CO2 emission limit, which was mooted for introduction in 2025 by the federal government’s ministerial forum on vehicle emissions.

Australia currently enforces Europe’s Euro 5 emissions regulations and the forum is considering whether to go with Euro 6 or take another approach.

And that’s exactly what Toyota wants. It endorses the staggered approach of the GHG (emissions) and CAFE (fuel economy) standards in North America that gives light trucks (SUVs) more leeway in terms of consumption and therefore emissions.

“Toyota’s view is Australia must harmonise its standards for emissions with leading overseas markets,” Hanley said.

“Any CO2 targets should distinguish between passenger cars and light commercial vehicles, with off-road passenger SUVs included with light commercials.

“That’s how they do it in the USA and Canada.

“We just believe from a consumer perspective it’s a fairer way… and our market largely is as close as you can get to the US in terms of the vehicle mix.”

While a blanket emissions edict wouldn’t stop a brand such as Toyota selling individual models that emit more than 105g/km CO2, its model line-up as whole would have to meet that target.

And doing that would affect the heavy-end of Toyota’s model line-up – and that of any manufacturer which offers heavy-duty heavy consumption 4x4s and commercials.

Inextricably intermingled with whichever tougher emissions standard we get is better fuel for cleaner more sophisticated engines that are now being developed.

Dirty fuel doesn't help

The problem is that Australia has dirty fuel. The local petroleum lobby has effectively resisted change for years, but with new-generation engines being mandated for tougher international standards, the need is becoming urgent for cleaner petrol and diesel. For example, regular unleaded is currently 150 parts per million (ppm) sulphur and premium 50ppm, but 10ppm sulphur is needed.

“Put simply we can’t achieve first world emissions without first-world quality fuel,” Hanley said.

But Hanley also made it clear Toyota’s stance wasn’t an attempt to avoid environmental responsibilities.

“I can assure you all that Toyota is not waiting for emissions laws to be enacted. We recognise all car makers must reduce emissions and the overall environmental impact of their vehicles.

“This is clearly an area where the mass market adoption of hybrid technology is vital to achieving the desired outcomes and no-one knows hybrid better than Toyota.”

Pressed further on Toyota’s stance Hanley threw up the shutters, explaining that Toyota is lobbying the federal government on the new standards via the Federal Chamber of Automotive Industries (FCAI).

Whatever the decision, it is not expected that legislation will be passed through parliament until after the next federal election, which may not happen until May 2019.

FAQ: Is diesel about to be banned?