Well the FCAI are the body that represent local car manufacturers, so it's fairly obvious that they're gonna take that position.
The comment was a backhander aimed at 15 year imports which came in in plague proportions before they shut it down, but seriously that changed 5 years ago now....move on...the street racing comment is just a cheap attempt to cash in on the hoon hysteria that the media loves at the moment. Given he got a quote out of it, it obviously worked.
The irony is that, in terms of emissions at least, import cars are subjected to stricter treatment than local cars, because they are expected to meet the emissions regs applicable when they were first produced when they are imported - my wife drives a Ford Territory, and given that it has only done 90,000kms and is already chewing oil and getting smoky, I'd love to see how it would go passing a similar test....