Second electric vehicle brand slams automotive body

A second electric car maker has resigned in protest from Australia's automotive industry group, saying it may have "irrevocably damaged consumer perception and trust" in fuel-efficiency standards with its misleading statements. 

Polestar revealed its decision to withdraw from the Federal Chamber of Automotive Industries (FCAI) on Friday, just one day after Tesla slammed the organisation for making "false and misleading" comments about the impact of the government's proposed New Vehicle Efficiency Standard. 

Together, the companies represent more than half of the electric vehicles sold in Australia in February. 

The news comes as the government negotiates with the automotive industry over new rules that would cap vehicle emissions, expected to be introduced in January 2025.

In a letter to FCAI chief executive Tony Weber, Polestar Australia managing director Samantha Johnson said the automaker supported efforts to produce more efficient cars and reduce vehicle pollution in Australia, and the FCAI's claims about price hikes may have misled consumers. 

"The FCAI's commentary against the proposed 'option b' framework of a (New Vehicle Efficiency Standard) does not represent the position of Polestar and may have irrevocably damaged consumer perception and trust in the proposed policy," she said. 

"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."

Ms Johnson said the chamber had received detailed financial modelling from S&P Global into the potential impact of the government policy but had yet to release it to FCAI members or the public.

"It appears that the FCAI has cherry-picked what it thinks will progress the position of only some members," she said.

"Claims by the FCAI and its members of significant price hikes in response to the standard are overblown."

Analysis by the Grattan Institute this week showed a fuel-efficiency standard could raise the average price of vehicles in Australia by one per cent but drivers would ultimately be better off due to lower fuel and maintenance costs. 

Figures from the federal government estimated drivers would save $1000 per year on fuel by 2028 under the proposed standard. 

Polestar's withdrawal from the FCAI comes just one day after Tesla resigned from the group, saying it had "serious concerns about false and misleading public comments" and that it had referred some claims to the Australian Competition and Consumer Commission. 

In a statement, the FCAI said it had to represent the needs of more than 50 other vehicle brands and could not support a fuel-efficiency standard that may lead to "less choice and higher prices" in Australia.

Greenpeace Australia Pacific campaigner Joe Rafalowicz said the FCAI protest would be welcome to consumers looking for more efficient vehicles, and urged more companies who disagreed with its stance to suspend their membership. 

“The FCAI is so far out of step with the demands of Australian consumers who we know want to see cleaner, more affordable electric cars on our roads sooner," he said.

“Car makers that are serious about climate action stand to gain nothing by associating with this increasingly irrelevant lobby group.”

Public consultation into the New Vehicle Efficiency Standard closed on Monday, and Energy Minister Chris Bowen said he and Transport Minister Catherine King would work through the submissions. 

"If there's good faith, sensible suggestions, we'll take them on board," he said. 

"But it's well beyond time that Australians had access to better, cheaper-to-run choices for their cars."

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store