FCAI has ACCC and pollies in sights

The incoming boss of the Australian auto industry has taken a swipe at the ACCC during his first day on the job.

Sub-standard fuel, safety and the regulatory framework for electric and autonomous cars are also a focus for Horst von Sanden, who has just been elected as the president of the Federal Chamber of Automotive Industries (FCAI).

Von Sanden is the first FCAI president who is not from a background in local manufacturing, after generations of leadership by Ford, Holden and Toyota. After so much time with a working-class focus, it’s ironic that von Sanden is the Australian chief executive of one of the world’s most elite brands, Mercedes-Benz.

Now a naturlaised Australian, von Sanden describes himself as an optimist and sees a strong future for cars and motoring, even as he acknowledges that the FCAI needs to do a better job on its interaction with bureaucrats in Canberra and politicians at all levels.

“Cars remain an integral component of the Australian identity. Our vehicles are central to our everyday life,” he says.

von Sanden is quick to identify the challenges facing the motor industry, including the Australian Competition and Consumer Commission (ACCC).

“We increasingly face an activist competition regulator, who seeks to increase regulatory compliance requirements,” von Sanden says.

He also talks openly about the need to improve the quality of unleaded petrol in Australia as Europe leads the way into tighter emissions standards with more engine efficiency.

“We cannot achieve lower emission outcomes purely on engine management technology. We need fuel of first world quality to get a first world emissions outcome,” the new FCAI boss says.

He also sees the need for action and investment by Canberra in the future of motoring.

“An exciting future requires a regulatory framework that allows for the adaptation of state-of-the-art technologies. In particular, a world-class connected and automated fleet requires investment in vehicle-to-vehicle infrastructure technology across our road network. It won’t happen without it.”

Von Sanden is already showing a much broader, and more open, approach to the work of the FCAI and the potential threats to the motor industry.

“It is a challenging time for big business in Australia. From the financial services Royal Commission to the debate around extending company tax cuts, multi-national corporations are under intense scrutiny,” he says.

“Robust scrutiny is the centrepiece of good corporate governance. The auto sector is not immune as we are presently witnessing through the Takata airbag recall and the recent ACCC report into the new-car retailing industry.”

Horst von Sanden’s exclusive and comprehensive first interview will be published at www.carsales.com.au on Wednesday (May 30).