Volkswagen Australia takes a step back from peak lobby group – report

One of Australia's biggest automotive companies will no longer be a participant on the policymaking committee of the car industry's peak lobby group.

According to a report from news outlet Reuters, Volkswagen Australia has vacated its seat on the Policy Advisory Committee within the Federal Chamber of Automotive Industries (FCAI) – the organisation made up of car companies.

The FCAI has been accused of publishing "deceiving" information and making "false" statements on the Australian Government's New Vehicle Efficiency Standard (NVES), in an attempt to undermine the proposal.

The NVES put forward three options to reduce the emissions from new cars from 2025 to 2030 – a mild option, a moderate option, and an aggressive option. Despite some support for the moderate approach, the FCAI warned the price of utes and SUVs could increase by as much as $13,250.

Last week, electric car brands Tesla and Polestar both renounced their memberships in the FCAI, claiming the organisation was only working to represent the interests of some of its members to slow the implementation of emissions standards.

While Volkswagen hasn't left the FCAI, its withdrawal from the policymaking council signals a line in the sand for the German auto giant.

MORE: Polestar quits peak Australian motoring body in alliance with Tesla

"Volkswagen Group Australia (VGA) withdraws from the FCAI's Policy Advisory Committee," the letter is understood to have read.

"VGA (Volkswagen, Audi, Skoda, and Cupra) speaks for itself on public and policy matters, including the New Vehicle Efficiency Standard.

"A strong NVES is in the best interest of this country."

It's understood the Policy Advisory Committee shapes the FCAI's position on subjects, before lobbying the government to push for its desired outcome.

The letter concludes by confirming Volkswagen Australia will continue to provide its sales figures for the FCAI's monthly VFACTS report.