Polestar Follows Tesla to Withdraw from Australia’s Car Lobby Group

Polestar said the chamber’s view on the new vehicle efficiency standard was not aligned with the company’s focus, prompting its exit from the peak body.
Polestar Follows Tesla to Withdraw from Australia’s Car Lobby Group
The Polestar 2 BST edition 270 electric vehicle on display at the 2022 Los Angeles Auto Show in Los Angeles, California, on Nov. 17, 2022. (Frederic J. Brown/AFP via Getty Images)
Alfred Bui
3/7/2024
Updated:
3/7/2024
0:00

Another EV (electric vehicle) manufacturer has followed Tesla to renounce its membership in Australia’s main automotive industry lobby group.

On March 8, Polestar Australia managing director Samantha Johnson sent a letter to the Federal Chamber of Automotive Industries (FCAI) to withdraw her company from the peak body as she believed FCAI’s view on the New Vehicle Efficiency Standard (NVES) contradicted Polestar’s.

The NVES is an initiative by the Labor government to “incentivise” car manufacturers to supply the Australian market with more fuel-efficient vehicles and EVs as it pushes for more carbon emissions reduction in the transport sector.

Under the proposal, the government will limit the carbon emissions (measured in grams per kilometre or CO2 g/km) produced each year by the fleet of vehicles that dealers can import into Australia.

Suppliers who exceed the limit will need to buy credits from other suppliers or pay penalties, with the proposed fine flagged at $100 (US$65) for every gram of CO2 over the target.

Polestar’s surprise move comes just hours after its head of communications, Laurissa Mirabelli, told ABC Radio that her company was considering following Telsa in pulling out of the peak industry body.

The Withdrawal Letter

According to Ms. Johnson’s letter, Polestar disagreed with FCAI’s recent comments that some options under the proposed NVES would increase the prices of many vehicles and cause some car models to exit the Australian market.

“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 letter read.

“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.”

Ms. Johnson also noted that FCAI’s suggestions about delaying the implementation of the NVES or changing its emissions reduction rules would add more burden on other economic sectors to lower their carbon emissions.

“Further, it will most likely ensure that Australia continues to be a dumping ground for old automotive technology,” she wrote.

“Consequently, Polestar Australia intends to cease its membership of the FCAI, with this letter being notice of its resignation as a member.

Lastly, the managing director stated that Polestar would consider rejoining the peak industry body when it committed to “representing all voices in the automotive industry fairly.”

A Polestar 1 car is seen during the 19th Shanghai International Automobile Industry Exhibition in Shanghai, China, on April 20, 2021. (Hector Retamal/AFP via Getty Images)
A Polestar 1 car is seen during the 19th Shanghai International Automobile Industry Exhibition in Shanghai, China, on April 20, 2021. (Hector Retamal/AFP via Getty Images)

Telsa Withdrawing From FCAI

Ms. Johnson’s letter comes one day after EV giant Tesla announced its withdrawal from FCAI.

In a letter to the FCAI, the company accused the peak body of “misleading” and “deceiving” Australian consumers with its statements.

Tesla argued that it was “inappropriate” for the lobby group to “foreshadow or coordinate whether and how competitor brands implement price changes” in light of environmental regulations such as the NVES.

The company also accused the FCAI of running a “concerted public campaign” against the new car emissions legislation and of representing companies that did not take action on climate issues.

Tesla’s view was completely opposite that of Australia’s most popular car brand, Toyota, which agreed with the FCAI that an NVES would force carmakers to raise the price of vehicles with low fuel efficiency, including off-road SUVs and light commercial vehicles.

Toyota Australia’s vice president of sales and marketing, Sean Hanley, recently said that the timing of the transition proposed by the government was “too quick” for car manufacturers to adapt.

The Epoch Times has reached out to the FCAI for comment but has yet to receive a reply in time for publication.
Nina Nguyen contributed to this article.
Alfred Bui is an Australian reporter based in Melbourne and focuses on local and business news. He is a former small business owner and has two master’s degrees in business and business law. Contact him at [email protected].
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