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Ford forced to axe cars due to government emissions regulations: 2025 Ford Everest 2WD ditched in Australia as NVES bite, with the Isuzu MU-X in danger too


The federal government’s new emissions regulations have claimed their first victims.

Ford has confirmed it will discontinue the two-wheel-drive Everest Ambiente and Everest Sport variants, which are the two most affordable versions.

Now Ford Australia has admitted the New Vehicle Efficiency Standard (NVES), which came into effect on January 1 this year, has caused the demise of the two-wheel-drive Everest variants.

The NVES fines carmakers $100 for every gram of CO2 over a certain limit per vehicle sold. The threshold gets lower every year until 2030.

It is split into two categories: passenger cars such as SUVs, hatchbacks and sedans, and then ladder-frame-based four-wheel-drives and utes. The latter have a much higher CO2 threshold to hit.

Two-wheel-drive Everests are classed as passenger cars, while the four-wheel-drive versions fall into the second category. 

This year a 4WD or ute needs to produce less than 210 grams of CO2 every kilometre to avoid fines. By comparison, a passenger car needs to emit less than 141 grams.

A 2WD Everest emits 187 grams of CO2 every km, and a 4WD version emits between 190g and 224g depending on engine choice.

Ford Everest RWD Ambiente Ford Everest RWD Ambiente

This means Ford could be slugged as high as $4600 in fines for every 2WD Everest sold this year, which would jump to $7000 next year.

A Ford Australia spokesperson said: “Yes, Everest 4x2 variants (Ambiente and Sport) will depart the Ford Australia line-up from the end of May production.

“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.

Ford Everest RWD Ambiente Ford Everest RWD Ambiente

“What it will do is allow us to focus on our four-wheel-drive line-up, which has been extremely popular with customers, demonstrated by Everest being number one in its segment in 2024.”

It is believed 4WD Everests make up the bulk of its sales and the brand is expanding its line-up with new variants.

A plug-in hybrid version could be a possibility as the Ranger ute, which the Everest shares its mechanical underpinnings with, gains petrol-electric power later this year. Ford has not confirmed a plug-in hybrid Everest yet.

Isuzu is in a similar situation with its MU-X and its local boss, Junta Matsui, said a variety of engine choices are “under study” for here.

An Isuzu spokesman said everything is up for consideration as the company looks to avoid potentially costly fines under NVES.

Ford Everest RWD Ambiente Ford Everest RWD Ambiente

“ [The 2.2-litre engine is] under study. We've got a few [other] powertrains under study as well,” the representative explained. 

“So what we have in place, the plan, is a strategy behind all of this with making these NVES targets. One of those is obviously looking at the existing powertrains that we have coming globally from Isuzu, one of which is that 2.2. But also investigating the probability or suitability for mild-hybrid and battery-electric vehicles as well. So Norway is getting their BEV in 2025, this year, it’s coming out very soon and we’ll see if that's suitable for here.”

The reality is 2WD MU-Xs produce between 196 and 206 grams of CO2, which means they could be hit with fines as high as between $5500 and $6500 per vehicle sold this year, with that figure jumping to $7900 and $8900 next year. 

Those kind of fines make it unrealistic to sell them here, with the brand likely to just push buyers to 4WD versions.

New Vehicle Efficiency Standard CO2 limits

YearPassenger cars (Type 1)4WDs/Utes (Type 2)
2025141g210g
2026117g180g
202792g150g
202868g122g
202958g110g