Time for the federal government to do its bit encouraging alternative-energy vehicles

Australia has to turn away from its carefree attitude to the environment, and actively support measures that will reduce greenhouse gas emissions.

We’re rapidly falling behind other developed nations more concerned for the environment, says Nissan Australia’s General Manager for Corporate Communications, Peter Fadeyev.

In discussion with motoring.com.au this week, Fadeyev lamented the lack of vision or assistance from government for importers of zero-emission cars. It’s completely at odds with the situation overseas, where governments offer consumers incentives to buy EVs and other alternative-energy cars.

Buyer resistance in Australia to electric vehicles (EVs) has been well documented in the past. Even the relatively affordable and practical Nissan LEAF sold just 173 units last year.

Fadeyev has joined the chorus of voices from the automotive industry badgering the government to loosen the purse strings. But the Nissan spokesman wants the government not to focus solely on a hydrogen future – which industry minister Ian Macfarlane doesn’t appear to be doing anyway. Fadeyev wants the government to look beyond EVs as a ‘transitioning technology’ in Macfarlane’s own words.

In fact, with talk concerning hydrogen refuelling stations dotted along the Hume Highway, Fadeyev remarked that electric recharging stations – presumably for longer-range EVs like Tesla’s Model S – would be just as effective, and easier to establish.

“You could do the same thing with an electrical recharging station… for electric cars – in fact, it would be far simpler and cheaper,” he said. The Nissan exec acknowledges there’s little commitment from governments that fail to see any future beyond the three-year election cycle.

“It’s indicative of a lack of planning… no one thinks beyond two or three years,” he said.

“We do need infrastructure solutions for alternatively-fuelled cars, whether it’s electricity or hydrogen or whatever. And private enterprise can’t do it on its own – not in the timeframe that’s allowable.”

The tardy implementation of Euro 6 was a concession for local manufacturing, but with the end in sight for local vehicle assembly, it’s time for Australia to join other countries around the world much further advanced along the path of environmental sustainability.

“Catching up is going to require government help. It’s typically industry that leads these things, but it’s going to require government assistance – this is not going to happen quickly.”

“Do it via consumers. For us, obviously, EV’s a relevant thing with LEAF. All through Japan, the United States, Europe, recharging infrastructure… they’re joint ventures between private enterprise – typically car companies – some utility companies, and governments.

“Secondly, make it an incentive for customers to buy a low-emission vehicle. Give big rebates for EV/zero emissions, and slightly smaller ones for four litres [per 100km] and under, or whatever. Consumers will vote with their feet; they’ll go where it’s cheaper; industry will follow.”

Fadeyev cited Nissan’s LEAF as an example of a car that is caught between a rock and a hard place in this country. In the free-trade market economy of the USA, the LEAF is subsidised by government, ironically, and it’s achieving the appropriate sales volumes. But it has been a leap of faith on Nissan’s part, building such a car for a market segment that tends to be fixated with price and value.

“It’s a very expensive car to make, and it’s a very expensive car to market,” he explained. “EVs are comparatively expensive to develop and make. Consequently they have a much higher retail price.

“So if you want a lower-emission environment due to motoring, we all have to chip in.

“In terms of car companies, they put a lot of skin in the game. Nissan LEAF has taken more than USD $6 billion in development money.”

That is six times the amount Mercedes-Benz spent developing the current S-Class, described by Fadeyev – a former Mercedes-Benz Australia spokesman – as the most complex production car in the world.

By implication, it’s a difficult time for the global car industry. Mitsubishi, for the local launch of the i-MiEV electric car, predicted prices would fall as the prices of flat-screen TVs had, but to date the lower prices forecast are still not low enough to make EVs a genuine alternative to hybrids, or even plug-in hybrids, let alone diesels and other conventional passenger cars designed for optimal fuel efficiency.

“Help with infrastructure, help with consumer incentive would be plenty. That’s all we need. And Japan, Europe and America proved that,” Fadeyev observed.

“We’ve sold almost 160,000 Nissan LEAF globally since that launched three or four years ago, which is quite impressive. All you need are those two ingredients and it cooks itself – and the result is there to be seen.

“We just don’t seem to have an appetite in this country to do that.”