Tesla Cuts Ties with Australian Auto Lobby Amidst Emission Standards Controversy

SYDNEY, March 7 – In a bold move, Tesla has officially severed its ties with Australia’s Federal Chamber of Automotive Industries (FCAI), accusing the major auto lobby of disseminating misleading information about the government’s proposed fuel efficiency standards and their potential impact on car prices.

In a letter addressed to the FCAI, Tesla asserted that the industry body had repeatedly made statements that were “demonstrably false.” The electric vehicle market leader expressed concerns about the FCAI’s role in influencing competitor brands on implementing price changes in response to environmental regulations, deeming it inappropriate.

Tesla is taking its concerns a step further by calling on Australia’s competition regulator to investigate the FCAI’s comments, signaling a desire to ensure fair and accurate information in the automotive sector.

The FCAI, which represents key leaders of major car brands, has not yet responded to Tesla’s allegations. The electric car manufacturer has declared its intention to terminate its membership in the FCAI come June.

This development comes at a crucial juncture for Australia’s auto industry as the country, until recently, was one of the few developed nations without established or developing fuel efficiency standards. The current government, under the center-left Labor party, is set to introduce a fuel efficiency model aiming to limit the average carbon emissions of new vehicles sold starting from next year.

The FCAI, in a statement on Wednesday, criticized the government’s decision to impose what it described as “extremely aggressive targets and severe penalties” effective from January 1, 2025. The industry body raised concerns about the potential disruption this could cause, leading to fewer choices and higher prices for consumers.

Tesla’s decision to part ways with the FCAI follows disputes over claims made by the industry body in its submission to the Australian government regarding the proposed New Vehicle Emissions Standard (NVES). The NVES aims to bring about a gradual reduction in tailpipe pollution starting in 2025.

In its submission, the FCAI argued that the NVES would significantly raise the prices of popular utility vehicles (utes) and SUVs. Tesla, in its own submission, criticized the FCAI for representing only those members seeking to delay the implementation of the NVES. The electric car manufacturer emphasized the need for transparency and accurate information for Australian consumers.

As the Australian government aims to finalize its preferred model and introduce legislation later this year, Tesla’s departure from the FCAI underscores the challenges and disagreements within the automotive industry regarding emission standards and their implications for both manufacturers and consumers.