Green car rating to be axed

At a time when fuel economy is a key focus for car buyers, the Federal Government plans to axe a crucial star rating guide that simplifies information about a vehicle’s environmental impact.

The Green Vehicle Guide website was established in 2004 to help motorists choose a more environmentally-friendly vehicle. It lists the fuel consumption and air pollution data for most new models and then summarises the results into a user-friendly star rating, similar to those on whitegoods.

The system has been adopted as a benchmark by business and government fleets across Australia – and one in five new-car buyers (about 20,000 people) visit the site each month. But the ratings which have helped almost 2 million motorists over the past eight years may vanish from the website on January 1.

The Federal Government has issued a discussion paper proposing all three parts of the Green Vehicle Guide star rating system – greenhouse, air pollution and overall ratings – be abolished because “consumers are much more knowledgeable about the environmental impacts of vehicles than they were when the GVG was launched in 2004”.

The Ford Motor Company and Australia’s peak automotive body have led the lobbying to scrap the rating system on all new vehicles. Ford’s latest “eco” models, developed with $42 million taxpayer dollars, don’t meet environmental criteria for some government fleets.

Ford says the entire car industry supports the move to drop the consumer-friendly ratings, but several leading brands are so angered by the issue they have broken ranks. A poll by News Limited has found Toyota, Volkswagen, Hyundai, Mazda and Suzuki, to name a few, are in favour of retaining the Green Vehicle Guide star ratings.

The Australian Automobile Association (which represents 7 million motorists) and the Australasian Fleet Management Association (which represents 600 fleet operators that manage more than 800,000 vehicles) are also in favour of keeping the star rating. In its submission to Federal authorities, Transport NSW said it has “concern regarding the proposal to abolish the GVG star ratings system and would encourage the Department of Infrastructure and Transport to reconsider its proposal”. 

Toyota, the largest seller and manufacturer of vehicles in Australia, and which has five cars in the top 10 list of environmentally friendly vehicles, wants the star ratings to stay and has asked the Federal Government to reconsider its proposal.

“Toyota Australia has indicated it would like more time to consider the possible alternatives for change from the current [rating system],” said spokesman Mike Breen. “A balance needs to be found between the complexity of rating the environmental impacts of vehicles and providing consumers with easy-to-understand information. We have data that suggests thousands of potential customers are accessing the [Green Vehicle Guide].”

Holden, the second largest manufacturer of vehicles in Australia, did not make a submission to government but supports Ford’s push to drop the star ratings. Holden’s director of environment and technology, Richard Marshall, said: “The star rating system is no longer relevant … and creates artificial boundaries at which a vehicle may be substantially penalized for a 1g CO2 increase, which is misleading to consumers.”

However, a survey by the AAA of 1600 motorists found that 68 per cent of respondents wanted the star rating retained. Sophie Mirabella, the shadow minister for Industry, Innovation and Science, said the proposal to drop the rating system was another example of the government’s “disastrous ad-hoc approach to green policy and cars”.

“The current scheme was started by our government, and [as with] a lot of policies [the Federal Government] just want to get rid of it for the sake of it,” Mirabella told News Limited. “The government is considering the feedback received from the community in response to the Discussion Paper,” said a spokeswoman for the federal minister for Infrastructure and Transport,Anthony Albanese.

What the car makers said

Ford spokeswoman Sinead Phipps: “Consumers are already aware of fuel economy and emissions labels on their vehicles and in advertising ... and we don’t believe an additional star rating is required.” 

Suzuki Australia boss Tony Devers: “Suzuki is in favour of the Green Vehicle Guide rating system as it is a clear benchmark for consumers. Removing it would only benefit companies that have something to hide.”

Volkswagen spokesman Karl Gehling said his company would prefer the star ratings remained, but “the criteria was modified to enable super-efficient diesel cars to be eligible for a five-star rating.” (At present, diesel cars are not able to achieve five stars despite their low fuel consumption because the toxic emissions are typically higher than they are for unleaded petrol vehicles.)

Steve Maciver, a spokesman for Mazda Australia, which sells more cars to private buyers than any other brand, said: “We have no issues with the star rating remaining.”

A spokesman for Hyundai, Bill Thomas, said: “It will be disappointing to see the removal of the GVG star rating system.”