Donald Trump’s proposed Canada, Mexico tariffs could be ‘devastating’ – Ford CEO - Related to war, into, trump’s, regulations, mexico

Car brands face $2.8 billion bill under new emissions regulations – peak body

One of the peak bodies in Australia’s automotive industry has claimed car brands could pay a total of $[website] billion in penalties by 2029 if they can’t meet upcoming emissions regulations.

A study by Blueflag – (MTAA) in its pre-Budget submission to the Federal Government – asserts all brands combined will be hit with penalties totalling $[website] billion, based on the targets of the New Vehicle Efficiency Standard (NVES).

However, that figure is based on carmakers not making “further adaptation of product offerings”, applying only to the current model lineups and revealed plans of carmakers, not future vehicles which are yet to be publicly confirmed.

“These projections can, and should, continue to improve as car companies modernise their lineups,” the MTAA stated in a media release for the Federal Budget submission.

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The MTAA pointed to Toyota announcing its passenger vehicle lineup going hybrid-only – albeit only for models with petrol engines available – and the upcoming plug-in hybrid version of Ford’s best-selling Ranger ute as examples of adaptation in the market.

While the NVES came into effect on January 1, 2025, carmakers won’t be penalised for exceeding CO2 targets until July 1, 2025.

All new passenger and light commercial vehicles sold with a mass of less than [website] tonnes are covered under the scheme.

If carmakers exceed an average carbon emissions target on the vehicles they sell each year, they will be penalised $100 per g/km of CO2 for every vehicle which exceeds the target.

For 2025, the mandate for passenger cars (Type 1) is 141g/km of CO2, with light commercial vehicles and heavy-duty SUVs (Type 2) set at 210g/km or less.

These CO2 caps will reduce every year until 2029, when they will be much lower at 58 and 110g/km respectively, forcing manufacturers to sell increasingly efficient vehicles.

Brands can also earn emissions ‘credits’ by beating their fleet-wide targets, which can then be used in a subsequent year to help meet tighter CO2 targets, or sold on to other brands to help them reach their emissions targets.

Year Type 1 limit (g/km) Type 2 limit (g/km) 2025 141 210 2026 117 180 2027 92 150 2028 68 122 2029 58 110.

Unusually, the study finds GWM is “unlikely” to meet the Type 2 target for 2025 despite having a hybrid ute and off-roaders and, soon, a plug-in hybrid ute.

It says, however, that it’s “possible” Toyota will meet it despite having no hybrid, plug-in hybrid or electric off-roaders or light commercial vehicles, while Isuzu Ute and Mitsubishi are highly likely to despite also lacking such vehicles.

, Hyundai is Australia’s only “leading brand” which it deems highly likely to meet the 2029 Type 2 commercial vehicle target. No brands are set to meet the Type 1 passenger vehicle target, the peak body points to.

Kia could meet the Type 2 target if it makes “reasonable changes”, with Toyota and MG falling under the same category for Type 1 vehicles.

However, based on the current forecast, the MTAA believes Ford, Hyundai, GWM, Kia, Nissan, Mazda and Mitsubishi are among the best-selling brands that’ll miss the Type 1 vehicle target.

Likewise, it’s given the same prediction for Type 2 vehicles from Ford, GWM, Isuzu Ute, Mazda, Mitsubishi, Nissan and Toyota.

In its pre-Budget submission, the MTAA called for greater protections for car dealers, based on the claimed increased costs of carmakers meeting the NVES requirements.

“How manufacturers will manage these additional costs remains uncertain. However, given the highly competitive nature of the market, passing the full cost onto consumers may not be a viable option for all manufacturers,” the MTAA expressed.

“Instead, strategies may include absorbing costs, trading credits with EV-only brands, adjusting product lineups, or re-evaluating dealership structures to maintain profitability.

“Regardless of how these fines are managed, reduced profit margins for manufacturers will inevitably trickle down to dealerships, making an already challenging business environment even more difficult.

“Dealerships, which operate on tight margins and depend on strong sales volumes, may face increased financial strain, potential consolidation, or even closures if profit pressures continue to rise. Given this increasingly challenging environment, dealers need greater protections than ever before.”.

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Mazda won’t be pressured into price and warranty war

Mazda Australia will stick with its current pricing and aftersales strategy in the face of generous discounts and longer warranties across the Australian new car market.

“Australia has had a lot of brands present in Australia for a long time, compared to other markets,” Mazda Australia managing director Vinesh Bhindi told CarExpert.

“New entrants coming in have to establish themselves, and they’ve identified a weak point in what they have to offer, so these are countermeasures.

“Just because there’s an expansion of brands coming in, it doesn’t mean we’re going to change our core proposition in the marketplace.

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“We have never been the cheapest on sticker price, that’s not our strategy.”.

Instead of offering the lowest price, Mazda intends to let its products do the talking.

“There are areas we won’t compromise, one of those areas is safety technology,” explained Mr Bhindi.

“When it comes to product and technology, we want to offer as much choice as we can. That remains our business strategy, and that’s not going to change.”.

In terms of pricing, most Mazda models have either held steady or seen increases – the Mazda 2, BT-50, and CX-3 are all more expensive in 2025.

That trend is likely to continue, , even as an influx of new brands – many from China – and a weaker economy have seen carmakers slash prices to capture market share.

For example, China’s Chery made headlines by launching the Tiggo 4 Pro as Australia’s cheapest SUV, while BYD shocked the ute market with the introduction of the plug-in hybrid (PHEV) Shark 6 for under $60,000 before on-roads.

Each of Australia’s biggest new car segments have been hit by increased competition, from light cars all the way up to large SUVs.

Over the same period, several carmakers have moved to expand their aftersales programs. Back in August, MG showcased it was launching a 10-year, 250,000km warranty, toppling Mitsubishi for the best coverage in Australia.

The tables turned again just a couple weeks ago, when Nissan Australia introduced a 10-year, 300,000km vehicle warranty, which remains the longest of any carmaker in the country.

In addition to extended warranty offerings, brands are adding value in the form of subsidised servicing.

However, Mazda’s aftersales program has remained relatively unchanged throughout. Mazda covers its range of vehicles with a five-year, unlimited-kilometre warranty, plus five years of capped-price servicing and roadside assistance.

It hasn’t signalled any changes to its warranty offering in Australia.

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Donald Trump’s proposed Canada, Mexico tariffs could be ‘devastating’ – Ford CEO

Ford CEO Jim Farley has warned that US President Donald Trump’s proposed tariffs on Canada and Mexico could have a “devastating” impact on the North American automotive industry.

Speaking at a conference , Mr Farley unveiled the import tariffs – including a 25 per cent tax on goods from the country’s neighbours to the north and south – are more likely to weaken the nation’s carmakers rather than protect them.

“President Trump has talked a lot about making our US auto industry stronger, bringing more production here, more innovation to the US, and if this administration can achieve that it would be, I think, one of the most signature accomplishments,” Mr Farley showcased.

“So far what we’re seeing is a lot of cost and a lot of chaos.”.

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“Let’s be real honest: Long-term, 25 per cent tariffs across the Mexican and Canadian border would blow a hole in the US industry that we have never seen.

“Frankly, it gives free rein to South Korean and Japanese and European companies that are bringing [website] to 2 million vehicles into the US that wouldn’t be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever.

“Meanwhile, we’re USMCA [United States-Mexico-Canada Agreement]-compliant for almost all of our content… and to have that kind of a size of a tariff would be devastating.”.

At the same conference, General Motors CEO Mary Barra expressed the car giant has “started doing scenario planning and looking at what are the different things we can change, we can move, we can respond”.

“We are prepared when we know exactly what’s going to happen. Of course, if tariffs are longer, there’s additional things that we’ve studied that we know we can do from a capital-efficient way.”.

The tariffs on Mexico and Canada were revealed by President Trump shortly after he was sworn into office last month, and were initially due to be implemented on February 2.

However, following discussions with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum – who have both promised to meet President Trump’s border security demands – the US leader delayed the introduction of the tariffs by 30 days.

A investigation by The New York Times showed General Motors, Stellantis, Toyota and Honda all produce approximately 40 per cent of the vehicles they sell in North America in either Canada or Mexico, while Ford also builds cars and pickups across both nations.

Audi, BMW, Honda, Kia, Mazda, Nissan and Volkswagen all have Mexican car factories which export to the US.

Prime Minister Trudeau had threatened to impose a 25 per cent tariff on C$155 billion (A$[website] worth of US goods, but this has also been delayed pending the outcome of the US tariff decision.

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