Updated 12 March: Volkswagen Group Australia acts as well – see below
VOLVO-aligned luxury electric vehicle maker Polestar has joined EV market leader Tesla in pulling the plug on its membership of the Federal Chamber of Automotive Industries (FCAI) saying that the chamber is deliberately slowing the national adoption of vehicles with a lower CO2 output.
In a letter to the CEO of the FCAI Tony Weber, the head of Polestar Australia Samantha Johnson said that data being disseminated by the chamber in its battle to have the government modify the stringent rules proposed under the New Vehicle Efficiency Standards (NVES) was not in the best interests of the company.
“Such a campaign is not aligned with Polestar’s focus, and we cannot support it,” said Ms Johnson.
“Claims by the FCAI and its members of significant price hikes in response to the proposed standards are over-blown.
“The FCAI has not released the full modelling underpinning its assertion, to the general public or to its own members. Rather, it appears that the FCAI has cherry-picked what it thinks will progress the position of only some (of its) members.
“In contrast, the Grattan Institute’s modelling suggests prices may increase by an average of one per cent and that lower fuel and maintenance costs mean that consumers will quickly be better off than they otherwise would be – and will be far better off in the long term.
“To help better inform the current debate, and to potentially reframe the industry position, Polestar calls on the FCAI to publicly release the full modelling from S&P Global.
“As a nation solely reliant on imported light vehicles, Australia is a technology taker.
“All new cars are imported from overseas manufacturers. Those same manufacturers meet emissions standards in other markets where standards currently exist. They can do the same for Australia.
“Delaying the implementation of a NVES, or changing the emissions reduction impact, only makes other sectors of the economy wear an additional emissions reduction burden.
“Further, it will most likely ensure that Australia continues to be a dumping ground for old automotive technology.
“When the FCAI commits to representing all voices in the automotive industry fairly, Polestar will consider returning as a full member,” Ms Johnson concluded.
VW acts as well:
Meanwhile Reuters is reporting that Volkswagen Group Australia has withdrawn from its seat on the policy advisory committee of the FCAI. It will continue to provide VFACTS data to the FCAI but, according to reports, says it will now “speak for itself” on matters concerning the NVES; thus separating itself from FCAI statements which it regards as contrary to the position it wants to take with the government.
See full Polestar letter below:
Friday 8 March, 2024
Mr. Tony Weber
Chief Executive Officer
Federal Chamber of Automotive Industries
Level 1, 59 Wentworth Avenue
KINGSTON ACT 2604
Dear Tony,
Polestar is a brand committed to accelerating the shift to sustainable electric mobility.
With transport emissions forecast to be Australia’s largest source of emission by 2030, Australia has a clear role to play and must catch up with the rest of the developed world1.
The transport sector contributed 19% of Australia’s emissions in 2022; passenger cars and light commercial vehicles alone accounted for 60% of Australia’s transport emissions and over 10% of Australia’s total emissions.2
Establishing a robust new vehicle emission standards is a natural extension of Australia’s commitment to stronger action on climate change, particularly targets of 43% below 2005 levels by 2030 and net zero 2050 commitments.
Polestar is committed to working with the Australian Government in support of the long-term health, environmental, and cost benefits offered by a robust New Vehicle Efficiency Standard (NVES).
The FCAI’s commentary against the proposed ‘Option B’ framework of a NVES does not represent the position of Polestar and may have irrevocably damaged consumer perception and trust in the proposed policy.
The brand cannot in good faith continue to allow its membership fees to fund a campaign designed to deliberately slow the car industry’s contribution to Australia’s emissions reduction potential.
Such a campaign is not aligned with Polestar’s focus, and we cannot support it.
Claims by the FCAI and its members of significant price hikes in response to the proposed Standard are over-blown. The FCAI has not released the full modelling underpinning its assertion; to the general public or to its own members. Rather, it appears that the FCAI has cherry-picked what it thinks will progress the position of only some members.
In contrast, The Grattan Institute’s modelling suggests prices may increase by an average of 1%3, and that:
Lower fuel and maintenance costs mean that consumers will quickly be better off than they otherwise would be – and will be far better off in the long term.4
To help better inform the current debate, and to potentially reframe the industry position, Polestar calls on the FCAI to publicly release the full modelling from S&P Global.
As a nation solely reliant on imported light vehicles, Australia is a technology taker. All new cars are imported from overseas manufacturers. Those same manufacturers meet emissions standards in other markets where standards currently exist. They can do the same for Australia.
Delaying the implementation of a NVES, or changing the emissions reduction impact, only makes other sectors of the economy wear an additional emissions reduction burden. Further, it will most likely ensure that Australia continues to be a dumping ground for old automotive technology.
Consequently, Polestar Australia intends to cease its membership of the FCAI, with this letter being notice of its resignation as a member in accordance with clause 14.1(a) of the Constitution of the FCAI.
When the FCAI commits to representing all voices in the automotive industry, fairly, Polestar will consider returning as a full member.
Kind regards,
Samantha Johnson
Head of Polestar Australia
1 Australia’s emissions projections 2022 – DCCEEW
2 https://www.dcceew.gov.au/energy/transport
3 Cleaner cars? Just do it – Grattan Institute
4 Cleaner cars? Just do it – Grattan Institute
By John Mellor
Read More: Related articles
