Saturday 7 November 2026 Industry news by email, Tuesday and Thursday: sign up
Advertisement
News / Industry News Industry News

VGA withdraws from FCAI committee over NVES stance

Robert Barry · 0 comments
The new state of the art facility incorporates all business divisions under one roof housing Volkswagen Passenger Vehicles, Volkswagen Commercial Vehicles, ŠKODA Australia, Bentley and Volkswagen Financial Services.

Volkswagen Group Australia (VGA) has withdrawn itself from the Federal Chamber of Automotive Industries (FCAI) policy advisory committee over the lobby group’s stance on the Federal Government’s New Vehicle Efficiency Standard (NVES).

But Tesla and Polestar have resigned as paid-up members of the lobby group.

According to Reuters, all three brands oppose the stance the FCAI is taking in response to the NVES.

Advertisement

The FCAI wants a watered-down version of the current scheme, which penalises high-emitting Utes and SUVs which are popular sellers in Australia, but that conflicts with the viewpoint of VGA, Tesla, and Polestar Australia. 

Reuters reports that Toyota Australia has backed the FCAI’s position, but it has called on the Federal Government to review the stringency of the plan and its phase-in penalties.

A VGA spokesperson told Reuters: “Volkswagen Group Australia speaks for itself on public and policy matters, including the New Vehicle Efficiency Standard. A strong NVES is in the best interests of this country.”

According to Reuters, Polestar Australia sent a letter to the FCAI arguing that delaying or making the standards less stringent would allow Australia to become a dumping ground for old technology and force the emissions burden elsewhere.

In the letter, Head of Polestar Australia Samantha Johnston 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.

Tesla was the first automotive brand to resign from the FCAI board, as it disagreed with claims the board made about the proposed standards and the effect on new vehicle prices. 

Robert Barry

Robert Barry has been reporting on the Australasian automotive and transport sector since June 2003. A member of the New Zealand Motoring Writers Guild since 2005, Robert has also previously held the positions of secretary, vice-president and president. His work has appeared in newspapers, magazines, and on the web. He holds a Class 2 and a Class 4 heavy transport licence and knows his way around a manual transmission.

All articles

Join the conversation