German car giant Volkswagen has become the second major global car maker to break ranks from Australia’s main car lobby to announce that it welcomes the federal governments New Vehicle Efficiency Standard (NVES) proposed two weeks ago.
Volkswagen – which represents the VW, Audi, Skoda and Cupra brands – joins South Korean car giant Hyundai in supporting the government’s preferred Option B, albeit with some caveats.
The endorsement from two of the biggest car makers comes after the Federal Chamber of Automotive Industries (FCAI) CEO claimed the NVES would cost Australians $38 billion and threatened to launch an anti-mining tax style fear campaign against the government’s proposal.
“Globally Volkswagen Group is committed to complying with the Paris Climate agreements with the goal of becoming a carbon-neutral company by 2050,” said Volkswagen Australia’s managing director Karsten Seifert.
“Volkswagen is driving toward majority all-electric vehicle sales in Europe by 2030. In the US and China, the company has set itself ambitious BEV targets in the same period.”
“Volkswagen Group Australia has long been among the voices calling for the introduction of binding auto industry standards that benefit Australia.” said Seifert.
Volkswagen calls for inclusion of super credits, but only for plug-in vehicles
Like Hyundai, Volkswagen has announced its support for Option B but with some elements of Option A, the preferred option of the car lobby. While Hyundai didn’t provide details on what those caveats would be, Volkswagen has said it wants to see super credits, but only for BEVs and plug-in hybrids.
“At this time, VGA would suggest the possibility of an NVES modelled on Option B with elements of Option A super credits for full Battery Electric Vehicles and Plug-in Hybrid Electric Vehicles.” said Seifert.
“This outcome should be of the most benefit to the Australian consumer.”
“This year our brands will introduce up to 10 BEV variants, including the first in this market for Volkswagen and Skoda,” Seifert said.
“Meanwhile, conventional utes, SUVs, cars and vans will remain pillars of our business for years to come. VGA is offering such a broad range of personal mobility choices to have the right option for each customer.”

Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.