A clause in just-introduced CO2 rules for new cars that hits 4x2 versions of large off-road SUVs with much bigger fines than 4x4 models will claim some of Ford and Isuzu’s cheapest cars.
Inbound CO2 emissions regulations for new vehicles in Australia will contribute to the axing of more affordable versions of some popular family SUVs.
Ford will drop two-wheel-drive (4x2) variants of the Everest SUV as their lack of 4x4 will categorise them as passenger rather than light-commercial vehicles under the rules, forcing them to hit more stringent standards – and attracting bigger fines if they are not met.
It is despite 4x2 versions being lighter, cheaper, more fuel-efficient and pushing less CO2 into the environment – the purpose of the standards – yet not being much less capable on loose surfaces.
They would be the first vehicles to be openly culled as a result of the penalties coming under the New Vehicle Efficiency Standard (NVES), which was introduced on January 1, 2025, but will not begin tracking vehicle imports to clock up fines until July 1.
The regulations mandate two sets of CO2 targets – one for passenger cars and SUVs, classified as ‘Type 1’ vehicles, and another for light-commercial vehicles such as utes and vans, known as ‘Type 2’ vehicles.
Large off-road SUVs can fall under the less stringent light-commercial vehicle targets if they use body-on-frame construction, can tow at least three tonnes braked and, importantly, have four-wheel drive.
It means a two-wheel-drive Everest that emits a rated 187 grams per kilometre of CO2 will face a target of 187g/km based on its weight – rather than between 215g/km and 218g/km if it was the same mass but four-wheel drive.
It equates to a fine billed to Ford equivalent to $1400 for each example imported in late 2025 – though it can be cancelled out by selling other cars that meet the targets – rather than a credit that could offset a fine of $2900 on another vehicle.
By 2029, as the targets become more stringent, Ford could be forced to pay close to $10,000 on each 4x2 Everest sold.
Four-wheel-drive Everests with the 4x2 model’s bi-turbo 2.0-litre engine will initially be in a ‘credit position’ – meaning they meet the target – as they are slightly less frugal and a fraction heavier, but can meet the light-commercial vehicle target.
In contrast, a 4x2 Isuzu MU-X with the 3.0-litre engine would face a fine equivalent to $4000 from Day One – emitting 206g/km against a circa-166g/km target – compared to about $900 on 4x4 versions.
Two-wheel-drive versions of equivalent Ford Ranger and Isuzu D-Max utes are safe, as their body styles ensure they can only fall under the light-commercial vehicle targets.
“Everest 4x2 variants (Ambiente and Sport) will depart the Ford Australia line-up from the end of May production,” a Ford Australia spokesperson told Drive.
“Being classified as a Type 1 vehicle means that 4x2 variants of Everest will be subject to more stringent restrictions, and therefore higher penalties, from July 1.
“There are a number of factors that go into making these decisions. One of those are penalties. Based on all of these considerations, 4x2 variants will be phased out of the line-up.
“It’s unfortunate for our customers that we’ve made the call to remove 4x2 variants from the Everest line-up, but we’re a business and we have to make commercial decisions.”
Isuzu Ute Australia has not confirmed the demise or trimming of the two-wheel-drive MU-X range, which is about to undergo a mid-life facelift as part of a Model Year 2025 (MY25) range announced last week and due on sale from March 1.
However, Drive understands some 4x2 variants – though not necessarily all – are destined for the chopping block, due to a combination of the NVES fines, and the popularity of 4x4 models.
“At this point in time, we are unable to comment on specifics relating to future model plans, but we do appreciate that the CO2 targets will be challenging for IUA and the majority of the industry,” an Isuzu Ute Australia (IUA) spokesperson said.
“However, we equally recognise the importance in continuing to provide Australians with a choice of 4x2 and 4x4 SUVs to suit their needs that is fit for purpose and meets all regulatory requirements.”
An LDV spokesperson said there are no current plans to drop 4x2 versions of the brand’s rival D90 off-road SUV, which use a 2.0-litre turbo-petrol engine.
It's understood about 10 per cent of Ford Everests sold are 4x2s, which are about $5000 cheaper than equivalent bi-turbo 4x4 grades.
Alex Misoyannis has been writing about cars since 2017, when he started his own website, Redline. He contributed for Drive in 2018, before joining CarAdvice in 2019, becoming a regular contributing journalist within the news team in 2020. Cars have played a central role throughout Alex’s life, from flicking through car magazines at a young age, to growing up around performance vehicles in a car-loving family. Highly Commended - Young Writer of the Year 2024 (Under 30) Rising Star Journalist, 2024 Winner Scoop of The Year - 2024 Winner
