©Reuters. The logo of the new Volvo Polestar 2 is displayed at the 89th Geneva International Motor Show, in Geneva, Switzerland, March 5, 2019. REUTERS/Pierre Albouy/file photo
By Lewis Jackson and Stella Qiu
SYDNEY (Reuters) – Volkswagen (ETR:) Australia said on Friday it was concerned about the exit of electric vehicle makers Tesla (NASDAQ:) and Polestar (NASDAQ:) from Australia’s main automotive lobby in protest at Organization’s criticism of proposed vehicle emissions rules.
The German automaker said it supports the government’s proposed standards and wants stronger incentives for importers of clean cars, in stark contrast to the flagship lobby group, which is pushing to weaken the rules.
“Our company’s position is its own, not that of some lobby group or membership organization,” a spokesperson said in an email.
VW, which remains in the lobby group, was concerned about the exit of Tesla and Polestar and was discussing the situation, the spokesperson added, without providing details.
To get more electric vehicles on the road and reduce emissions, Australia has proposed vehicle efficiency standards that will penalize automakers for importing high-emissions models and reward those who bring in cleaner vehicles.
Polestar Australia, owned by China’s Geely Automobile, walked out of the Federal Chamber of Automotive Industries on Friday, a day after Tesla did the same, and said the lobby group’s comment against the proposed regulations had “irreparably damaged” the public trust in politics.
In a letter to the FCAI, Polestar said delaying or making standards less stringent would keep Australia a dumping ground for old technology vehicles and place the burden of emissions on other sectors of the economy.
“The brand cannot in good faith continue to allow its membership fees to fund a campaign designed to deliberately slow the automotive industry’s contribution to Australia’s emissions reduction potential,” Polestar boss Samantha Johnson said in the letter Australia.
Tesla quit the FCAI and resigned from its board of directors on Thursday, accusing it of making false claims about the proposed standards and their effect on car prices.
In response to questions about the exits, the FCAI said on Friday it could not support a standard that meets the needs of premium vehicle owners while leaving others with fewer choices and higher prices.
The FCAI said its members represent more than 50 brands. His chair and two vice presidents come from Mazda, Toyota (NYSE:) and Mitsubishi Motors (OTC:), respectively.
The centre-left Australian Labor government opened consultation on the standards in February and also published a “preferred template” for the new standards.
The aim is to introduce the new standard in 2025, which will become more stringent each year, with the aim of reaching an average vehicle emissions intensity similar to that of the United States by around 2028.
Russia and Australia are among the only developed countries without fuel efficiency standards.
(This story has been reposted to correct spelling of paragraph 9)
The FCAI said earlier this week that the government’s preferred option would be to increase prices and limit options, especially for pick-ups popular in the country.