Controversy Over 'Carbon Emissions' in Australia... Tesla and Volkswagen Withdraw from Car Association

60% Reduction Target for Vehicle Carbon Emissions Within 5 Years
Popular Australian Pickup Truck Toyota Opposes
Electric Vehicle Companies Support for 'Reflected Benefits'

Following Tesla, Volkswagen has also withdrawn from the Australian Federal Chamber of Automotive Industries (FCAI). As the association opposed the Australian government's carbon emission regulation policy, electric vehicle companies benefiting from the policy expressed their protest.

Major foreign media reported on the 11th (local time) that the German automaker Volkswagen withdrew from the FCAI in protest against Australia's new carbon emission reduction campaign. Last week, electric vehicle companies Tesla and Polestar also announced their intention to withdraw.

[Image source=Reuters Yonhap News]

The reason electric vehicle companies are leaving the Australian automotive association is that the association strongly opposes the government's exhaust gas regulations. Last month, the Australian government announced a regulation (New Vehicle Efficiency Standard) that provides incentives or penalties to manufacturers based on the exhaust emissions of imported vehicles to expand the adoption of electric vehicles and reduce exhaust emissions. It also instructed automakers to devise self-help measures aiming to reduce vehicle carbon emissions by 60% within five years.

In response, the FCAI has voiced opposition, stating that the government's excessive targets could raise car prices by millions of won. They particularly demanded revisions to the government's policy, arguing that it would increase the prices of popular pickup trucks in Australia and limit consumer options. Toyota, which launched pickup truck models in Australia, also supported the association's position last week and urged the government to reconsider the plan.

On the other hand, related companies that consider these government regulations favorable for the growth of the electric vehicle market have criticized the association opposing the government policy and are showing a collective withdrawal movement. Tesla announced its intention to withdraw from the association on the 7th, criticizing, "The FCAI is distorting the impact of government regulations on car prices and inciting consumers." Polestar Australia's CEO Samantha Johnson drew a line, saying, "We cannot continue to pay membership fees and support a campaign that delays Australia's emission reductions." Volkswagen also aligned with the withdrawing companies, stating, "The Australian government's carbon emission regulations are in line with national interests."

Meanwhile, Australian Energy Minister Chris Bowen said the day before, "The Australian government is open to compromise with the association, and wise ideas to resolve conflicts are always welcome."