“It is concerning:” Volkswagen may quit car lobby after Tesla and Polestar pull plug

The exodus from Australia’s beleaguered car lobby is gathering pace, with Volkswagen Group also reviewing its options after Sweden-based Polestar confirmed it has joined Tesla in making a spectacular resignation from the Federal Chamber of Automotive Industries (FCAI).

Tesla on Thursday cited “serious concerns about false and misleading public comments” it said the FCAI had made around the price impact of efficiency standards. The EV giant also referred the FCAI to Australia’s competition watchdog, asking it to consider whether the group deliberately sought to deceive consumers.

Polestar followed up on Friday saying that “it could not support” the FCAI position.

The Driven can confirm that Volkswagen is now also considering its options.

“If sales data, especially Tesla’s, is to be absent from monthly sales reporting, it is concerning.” a VW spokesperson told The Driven.

“Auto importers each pay the FCAI a considerable sum for the VFACTS report. Our brands are discussing the broader situation.”

“Suffice for now to reiterate that our brands – Volkswagen, Audi, Skoda and Cupra – speak on their own behalf. No other organisations represents VGA’s position.”

Rumours swirl that other automakers may follow Tesla and Polestar

Polestar head of communications Laurissa Mirabelli hinted at more departures in an interview on Friday morning on ABC Radio.

“I understand that there’s other industry players who are still assessing their own position because obviously not everybody is aligned to the FCAI’s current narrative,” Mirabelli said.

“It’s really just car companies doing their numbers, figuring out where they sit, where they can land.”

“I think when the FCAI is making comments on behalf of the entire industry there are lots of different opinions within that industry.”

The FCAI may be facing a broader exodus with remaining members deeply concerned about a possible referral to the competition watchdog.

Yesterday it was reported that Tesla will refer the lobby group to the Australian Competition and Consumer Commission (ACCC) for suspicion of being involved in price implementation strategies between competitive car brands.

In its letter to FCAI CEO, Tesla outlines its concerns.

“Tesla is uncomfortable with the FCAI indicating that carmakers will enact fixed price changes in response to emissions standards.” reads the letter.

“As an industry association, the FCAI should be careful to not facilitate coordination amongst competitor companies about how they change prices or supply in response to regulations.

“Any impacts of NVES on vehicle prices – both up and down – are subject to complex competition and trade between competitors in both the vehicle market and the regulatory credit market. Companies have several options in responding to the NVES including adjusting product mix, adjusting volume, carrying debits and credits over several years, and negotiating trade of regulatory credits.

“When the FCAI makes blanket claims about how its members will change product prices, it risks facilitating or creating the impression of anti-competitive behaviour. It is up to individual companies to set prices, and it is inappropriate for the FCAI to tell companies in private meetings or public commentary what any price changes will or should be, or to suggest that these price changes are fixed and uniform.”