The potential for Australia to resurrect its languishing manufacturing sector and secure homegrown jobs is being undermined by the federal government's failure to promote the plug-in hybrid electric vehicle (PHEV). The plug-in option is an enhancement that Toyota has announced they may release in their 2009 series Prius.

In 2006, 960,000 new vehicles were purchased in Australia, with only 20 per cent of these made in the country. The sale of locally made new cars had fallen 19 per cent from the previous year. Concerns about global warming and volatile petrol prices have forced consumers to overlook the Australian made six cylinder vehicles in favour of more efficient foreign products. Yet with innovative investment in the hybrid technology the Australian automotive industry can be given new life.

Of the near million new cars sold each year in Australia, 400,000 are either government purchases, fleet or salary sacrifice vehicles.

The Australian government should legislate that by 2010 all government, fleet and salary sacrifice vehicle purchases must be for vehicles using a hybrid drive system (with some exemptions for remote use and primary industry vehicles). This would provide a remarkable incentive to our car manufacturers to make long-term investment in the low emission plug-in hybrid technology, reducing carbon emissions from Australia's light vehicle fleet by up to 85 per cent.

"Sources in the Australian car industry have put the cost of converting our manufacturing base over to a hybrid drive at $300 million and 30,000 firm orders for each of the four established car manufacturers. This is a total commitment of $1.2 billion and 120,000 orders per year to tool up each of the car plants and start production," said Mr Wright.

"The government currently forgoes a billion dollars each year in tax revenue in the form of (fringe benefit) tax exemptions to individuals. If we can direct this subsidy to clean vehicles then we've created the market for hybrids, and with a one-off $1.2 billion all the automotive plants in Australia can be converted."

In particular we believe Toyota could tool up very quickly as they already have their hybrid technology ready to go and they've been testing the plug-in option, considering it as part of their 2009 series Prius," said Mr Wright. "The potential for Australia to get in on PHEV manufacturing is ripe for the taking, it's just a matter of will and when. If we drive down the hybrid road now, we'll be able to pick up export opportunities all over the world, where governments are choosing to convert their fleets to near zero emissions technologies."

PHEVs are defined by their capacity to be powered by a grid-charged battery, boosted by a combustion engine for trips over 50-80 km. With significant renewable capacity installed on the grid and integration with intelligent electricity metering, all new private automotive transport in Australia's urban centres can be near zero emissions in three years. Meanwhile the Australian government still applies a 50% discount on import duty for 4WDs, like the giant Hummer, charging twice as much for hybrids like the Prius and the Honda Civic.

"Kevin Rudd's $500 million 'Green Car Innovation Fund' is a welcome indication of the ALP's interest in saving our car industry and environment, but it doesn't go far enough, lacking the firm actions we are proposing," says Mr. Wright. "If the Australian government or opposition are serious about preventing climate change they should work with the car industry to develop Australian plug-in hybrids in a timely manner. Not only does it significantly reduce our carbon emissions, but it also secures Australian jobs."

Hybrids drive Toyota sales to record but US rivals are lagging or local cached copy

Bill Shorten (AMWU): Car industry needs a hybrid drive if it wants to thrive

GM planning to market two plug-in hybrids

Toyota to roll out new line of hybrids (from Japan)

Spy Image: Next Gen Toyota Prius

Green with envy

Call to drive local hybrid technology out of the museum

PG&E Unveils Next-Gen Electric Car Technology

Daimler Chrysler combines best European Diesel Tech with Plug-in Hybrid Drive

GM will get plug-in vehicle into production: executive

Diesel Hybrid School Buses Give California Legislators New Tool to Reduce Emissions

Wikipedia: Toyota Prius 2009

Wikipedia: 3rd generation hybrid synergy drive

Progress or Breakthroughs at California Symposium for Zero Emission Vehicles?

For comment ring: Matthew Wright 0421 616 733
http://www.beyondzeroemissions.org/

Beyond Zero Emissions is an independent Zero Emission Minus Climate Change campaign.