Overview
- The New Vehicle Efficiency Standard (NVES), set to take effect in July, mandates emissions ceilings for automakers with heavy penalties for non-compliance.
- Peter Dutton and the Coalition have pledged to abolish the penalty mechanism if elected, framing it as a financial burden on families and small businesses.
- The Coalition plans to retain the framework of the NVES to encourage cleaner vehicles but argues penalties will unnecessarily increase car prices.
- Industry forecasts suggest NVES penalties could total up to $2.7 billion by 2028, with some manufacturers potentially passing costs onto consumers or removing models from the market.
- Labor defends the penalties as vital for achieving emissions targets, while critics highlight global automotive uncertainty exacerbated by U.S. trade policies.