Tesla, Australia auto lobby split widens as Volkswagen backs government emissions rules

investing.com:

By Lewis Jackson and Stella Qiu

SYDNEY (Reuters) — Volkswagen (ETR:VOWG_p) Australia said on Friday it was concerned about the exit of electric vehicle makers Tesla (NASDAQ:TSLA) and Polestar (NASDAQ:PSNY) from Australia's major automotive lobby in protest over the organisation's criticism of proposed vehicle emissions rules.

The German automaker said it supported the government's proposed standards and wanted stronger incentives for clean car importers, in stark contrast to the peak lobby group, which is pushing to water down the rules.

“Our company’s position is its own — not that of any lobby group or membership organisation," a spokesperson said in an email.

VW, which remains in the lobby group, was concerned about the exit of Tesla and Polestar and was discussing the situation, the spokesperson added, without giving specifics.

To get more electric vehicles on the road and cut emissions, Australia has proposed vehicle efficiency standards that will penalise car makers who import emissions intensive models and reward those who bring in cleaner vehicles.

Polestar Australia, part-owned by China's Geely Automobile quit the Federal Chamber of Automotive Industries on Friday, a day after Tesla did the same, and said the lobby group's commentary against the proposed regulations had «irrevocably damaged» public trust in the policy.

In a letter to the FCAI, Polestar said delaying or making the standards less stringent would keep Australia a dumping ground for old technology vehicles and force the emissions burden elsewhere in the economy.

«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