1 00:00:00,040 --> 00:00:02,240 Speaker 1: All right, the government's having another go at the clean 2 00:00:02,279 --> 00:00:06,760 Speaker 1: car standard, saying importers just cannot hit the current targets. 3 00:00:07,000 --> 00:00:10,480 Speaker 1: It's moving to slash emission charges, cutting the twenty twenty 4 00:00:10,520 --> 00:00:13,280 Speaker 1: three Clean Vehicle Standard by nearly eighty percent, and the 5 00:00:13,400 --> 00:00:15,840 Speaker 1: change is expected to save around two hundred and sixty 6 00:00:15,840 --> 00:00:18,640 Speaker 1: four million dollars in costs of consumers and we'll keep 7 00:00:18,680 --> 00:00:22,240 Speaker 1: our imported cars cheaper. So let's talk to Greg Epps, 8 00:00:22,320 --> 00:00:26,800 Speaker 1: who is the Imported Vehicle Association CEO. Good morning to you, Greg, morning, 9 00:00:26,920 --> 00:00:28,680 Speaker 1: How are you good? Matte? Is this good news for you? 10 00:00:29,840 --> 00:00:33,559 Speaker 2: It is? It's really welcome relief. The industry has been 11 00:00:34,320 --> 00:00:38,560 Speaker 2: struggling for least the last year and a half under 12 00:00:38,600 --> 00:00:42,880 Speaker 2: these targets. I mean, people might call this backsliding, but 13 00:00:42,920 --> 00:00:46,600 Speaker 2: when you've set a target so hard that we can't 14 00:00:46,640 --> 00:00:50,000 Speaker 2: even get to it, you know it's not backsliding. It's 15 00:00:50,040 --> 00:00:53,400 Speaker 2: being realistic and coming back to what can we actually 16 00:00:53,479 --> 00:00:56,000 Speaker 2: do to be bringing cleaner cars into the country. 17 00:00:56,080 --> 00:00:58,840 Speaker 1: Government says consumers will save two hundred and sixty four million. 18 00:00:59,480 --> 00:01:02,000 Speaker 1: So what is that mean for the prices of used cars? 19 00:01:03,000 --> 00:01:06,400 Speaker 2: Well, what we've been seeing is that there's a certain 20 00:01:07,600 --> 00:01:11,560 Speaker 2: segment of cars. Especially it's the family sized vehicles, those 21 00:01:11,920 --> 00:01:15,040 Speaker 2: sort of six and seven seaters that have just been 22 00:01:15,160 --> 00:01:18,520 Speaker 2: pushed out of the price range of the family, the 23 00:01:18,600 --> 00:01:22,720 Speaker 2: normal key we family. You know, they've been suffering from 24 00:01:22,840 --> 00:01:26,600 Speaker 2: penalties of nearly three thousand dollars on top of the 25 00:01:26,640 --> 00:01:29,479 Speaker 2: price of the vehicle. And when you're looking at things 26 00:01:29,520 --> 00:01:32,800 Speaker 2: like a hybrid people Move, which is a really good 27 00:01:32,800 --> 00:01:35,640 Speaker 2: car that you want people to get into, you put 28 00:01:35,680 --> 00:01:37,960 Speaker 2: another three thousand dollars on top of the price and 29 00:01:38,600 --> 00:01:39,960 Speaker 2: it just gets out of reach. 30 00:01:40,200 --> 00:01:43,160 Speaker 1: What I found interesting is exactly that the hybrids, which 31 00:01:43,200 --> 00:01:48,120 Speaker 1: have less emissions than your older cars, we're also getting penalized. 32 00:01:49,160 --> 00:01:51,880 Speaker 2: Yeah, and from next year. And the thing is, it's 33 00:01:51,960 --> 00:01:55,919 Speaker 2: the penalties that have been cut, the target is still 34 00:01:55,960 --> 00:01:59,960 Speaker 2: going to be harder to reach. Next year, it's still 35 00:02:00,120 --> 00:02:03,280 Speaker 2: it's still going to go down. So next year or 36 00:02:03,400 --> 00:02:07,720 Speaker 2: almost all all hybrids, whether they're new, used, we're going 37 00:02:07,760 --> 00:02:10,240 Speaker 2: to be penalized. So we were going to be pushing 38 00:02:10,280 --> 00:02:12,120 Speaker 2: this technology out of reach. 39 00:02:12,520 --> 00:02:14,200 Speaker 1: And evs were they penalized too. 40 00:02:15,240 --> 00:02:18,440 Speaker 2: No evs, if it's a pure EV it would still 41 00:02:18,840 --> 00:02:21,760 Speaker 2: have got a credit. But the problem for us is 42 00:02:21,800 --> 00:02:26,040 Speaker 2: that in the used sector, Japan hasn't been making evs, 43 00:02:26,280 --> 00:02:29,440 Speaker 2: and so there aren't used evs for us to bring 44 00:02:29,440 --> 00:02:33,760 Speaker 2: into the country, and so we weren't able to generate credits. 45 00:02:33,800 --> 00:02:37,040 Speaker 2: The policy expected you to be able to generate credits 46 00:02:37,040 --> 00:02:41,160 Speaker 2: to offset your penalties. But as the as the government 47 00:02:41,760 --> 00:02:46,360 Speaker 2: noted yesterday, well over eighty percent of people of importers 48 00:02:46,360 --> 00:02:49,920 Speaker 2: bringing cars and we're just being penalized and being penalized 49 00:02:49,960 --> 00:02:51,839 Speaker 2: over one thousand dollars a car. 50 00:02:52,320 --> 00:02:54,880 Speaker 1: Does this mean that evs are a bus in that 51 00:02:54,960 --> 00:02:59,600 Speaker 1: Japan is not making them, however, China is making thousands. 52 00:02:59,200 --> 00:03:01,679 Speaker 2: That's that's that's the thing I mean. I think what 53 00:03:01,760 --> 00:03:04,520 Speaker 2: we've pointed out to the government is that there are 54 00:03:04,520 --> 00:03:07,280 Speaker 2: really two markets here. There are new cars, and the 55 00:03:07,320 --> 00:03:09,880 Speaker 2: new car manufacturers have got a lot of opportunity to 56 00:03:09,880 --> 00:03:13,880 Speaker 2: get out there and find these to say, the Chinese vehicles, 57 00:03:13,919 --> 00:03:19,239 Speaker 2: and to push the Japanese manufacturers to head towards evs 58 00:03:19,280 --> 00:03:22,600 Speaker 2: as well. But in the used car market, we haven't 59 00:03:22,639 --> 00:03:26,239 Speaker 2: had that opportunity. And so you know, we bring affordable 60 00:03:26,320 --> 00:03:30,639 Speaker 2: vehicles for Kiwi families and the average Kiwi. We can 61 00:03:30,680 --> 00:03:33,840 Speaker 2: bring in class that are cleaner than what we've got here, 62 00:03:34,320 --> 00:03:37,520 Speaker 2: and that's how we progress and refresh the fleet and 63 00:03:37,600 --> 00:03:40,360 Speaker 2: move it forward, and we can, you know, let's get 64 00:03:40,400 --> 00:03:43,280 Speaker 2: as many evs as we can, but we've got to 65 00:03:43,280 --> 00:03:46,320 Speaker 2: be realistic about about what the average KEI we can afford. 66 00:03:46,400 --> 00:03:48,080 Speaker 1: And what do you say to the people who say, oh, great, 67 00:03:48,080 --> 00:03:50,160 Speaker 1: we're going to have cheap cars, but we're also going 68 00:03:50,160 --> 00:03:51,560 Speaker 1: to have dirty cars. 69 00:03:53,960 --> 00:03:58,360 Speaker 2: Every used import that comes in at the moment is 70 00:03:58,960 --> 00:04:02,120 Speaker 2: better in terms of two than the average vehicle in 71 00:04:02,160 --> 00:04:05,840 Speaker 2: the sleep. We're talking about replacing twenty year old vehicles 72 00:04:06,240 --> 00:04:09,040 Speaker 2: with a ten year old vehicle that is that is cleaner. 73 00:04:09,160 --> 00:04:13,400 Speaker 2: So we're not bringing dirtier cars, and we're not bringing 74 00:04:13,440 --> 00:04:18,039 Speaker 2: dirty cars, and we're actually trying to shift four million 75 00:04:18,160 --> 00:04:21,960 Speaker 2: cars and change the composition of that fleet. So no, 76 00:04:22,000 --> 00:04:27,000 Speaker 2: we're working to bring that carbon level down, but it 77 00:04:27,040 --> 00:04:27,839 Speaker 2: does take time. 78 00:04:28,200 --> 00:04:29,880 Speaker 1: Greg, thank you so much for your time this morning. 79 00:04:29,920 --> 00:04:33,720 Speaker 1: Greg is the CEO of the Important Motor Vehicles Association. 80 00:04:34,720 --> 00:04:37,680 Speaker 2: For more from Early Edition with Ryan Bridge, listen live 81 00:04:37,839 --> 00:04:40,839 Speaker 2: to news Talks it Be from five am weekdays, or 82 00:04:40,880 --> 00:04:42,800 Speaker 2: follow the podcast on iHeartRadio.