Green Car Innovation Fund

[bobthebilda]

I have just been reading through the Federal Governments "Green Car Innovation Fund". They seem to putting up alot of money, with what seem to be, very broad ranging criterias. Thus to prevent all your tax money going to foreign owned companies, I need someone to provide me with a fuel saving method that can be applied to a current car.

According to the GCIF, it doesnt look like the idea has to be effective or needs to prevent horrific side effects, it just needs to fool a public servant. If I manage to get millions from the government, I will do the right thing, and give the owner of the best idea a 10% kickback.

Thus all I have come up with is.
1) seal the boot - and fill it, and the tyres with with helium (less weight increases fuel efficiency)
2) Have larger wheels on the back than on the front. That way car is always rolling downhill on flat roads.
3) Only allow petrol stations to operate at night. Lower average temperature will ensure more petro for customer
4) Remove unused items from certain models. Remove indicator stalk from commodores and volvos. Remove rear veiw and side mirrors from BMW four wheel drives.

[Gaz]

A professor in Perth made the comment that the GCIF is neither Green nor innovative.

I agree.

[PimpMyHubcap]

Why dont you troll the Anger Management courses or actually hire someone to provide a free "Car Dimpling Service". Wasnt this proven to save fuel?

Supply them a golf club and tell them to go for it. You could give discounts to car yards and auction sites. Manufacturers would soon catch on and change their tooling so you need to get in NOW. :

Cheers
Mick

[cob115]

green jobs = no jobs ,this sounds like another one of Kruds im (looking to be doing some thing but in fact doing bugger all).If the morons cant insulate homes build class rooms,with out every dodgy shonk ripping of us the mug tax payer ,how can we expect this program to be well thought out & not more of the same????

[bobthebilda]

Originally Posted by PimpMyHubcap

Why dont you troll the Anger Management courses or actually hire someone to provide a free "Car Dimpling Service". Wasnt this proven to save fuel?
Cheers
Mick

Yep, I saw this on mythbusters the other week. Even tho they added quite afew hundred kilo's to the car weight ( a clay skin to put the dimples into it), they were able to acheive a 11 percent fuel saving.

I guess it might add to mosquito / ross river / malaria problems in tropical areas. (rain pooling in the dimples would be a perfect breeding ground). But this shouldnt be an issue, as it would just be a consequence of a stupid government policy. All they need to see is the idea, not the consequence.

And like Reuss's idea of manufacturing cruze in australia, I would have the money before they wised up to the stupidity of my idea.

[dannyhilton]

Originally Posted by bobthebilda

Remove unused items from certain models. Remove indicator stalk from Commodores and Volvos. Remove rear veiw and side mirrors from BMW four wheel drives.

ABSOLUTELY LOVE IT!

[TheInterceptor]

Formulate a "Special" clear coat paint that makes the car travel through the air smoother and more streamlined.

[bobthebilda]

Originally Posted by TheInterceptor

Formulate a "Special" clear coat paint that makes the car travel through the air smoother and more streamlined.

Could be a good idea. It only has to pass thru a public servant check. So I am gonna try a special formula of H2O. Just in case they wise up to it, i'll make it H4O2

[GS608]

Introduce a car that is effectively a 1t paper weight therefore forcing people to walk, saving fuel and carbon emissions

[uranium_death]

Originally Posted by XR-CHIEF

Introduce a car that is effectively a 1t paper weight therefore forcing people to walk, saving fuel and carbon emissions

We've had many in the past.
Camira anybody?

[PimpMyHubcap]

Sigma??

[vztrt]

Green cars in poll test

http://www.goauto.com.au/mellor/mell...257766002140D1

Federal and state election battle lines drawn around government green-car funding

20 July 2010

By MARTON PETTENDY

LUCRATIVE government funding for ‘green’ vehicle technologies has emerged as a key battleground in the lead up to both the Australian federal election on August 21 and the Victorian state election on November 27.

The shadow minister for innovation, industry, science and research, Sophie Mirabella, this week confirmed to GoAuto that if elected in 32 days, a federal coalition government would slash $278 million from the Labor government’s Green Car Innovation Fund (GCIF).

Australia’s peak automotive industry body, the Federal Chamber of Automotive Industries (FCAI), declined to comment this week, but the Federal of Automotive Parts Manufacturers (FAPM) warned that any funding cuts would have a negative impact on Australian component suppliers.

The green-car funding cut was originally announced by shadow treasurer Joe Hockey in May, as part of a range of cost-cutting measures revealed in the opposition’s response to that month’s federal budget.

It will follow the federal government’s own $200 million cut in forward estimates for the 10-year GCIF, which was a centrepiece of the Rudd government’s 2007 election campaign.

As part of the May budget, the federal Labor party said it would reduce GCIF spending by $200 million over three years from 2011 to 2014 – reducing it from $1.3 billion over the full 10 years from 2009 to 2019, to about $1.1 billion – after fewer than expected applications for green funding.

Documents released by the shadow treasurer and shadow finance minister on behalf of the Coalition in May show an Abbott government would axe a further $278 million from the green fund over the next four years, reducing the total GCIF spend to about $822 million.

A spokesman for the shadow industry minister today confirmed that figure would remain unchanged if a Coalition government was elected next month, although changes would be made to the cost reductions announced for each financial year, which originally included $52 million in 2010-11, $87 million in 2011-12, $78 million in 2012-13 and $61 million in 2013-14.

Confirming that debt and deficit would be the key issues of the election campaign, opposition leader Tony Abbott this morning announced that – in addition to the $46.7 billion in savings it has already promised – a coalition government would make a further $1.183 billion in budget spending cuts.

No further cuts have been announced for either the GCIF or the $3.4 billion Automotive Transformation Scheme (ATS), which forms part of the federal government’s $6.2 billion automotive industry assistance plan for the next decade, and the opposition has committed to honouring all GCIF contracts already awarded by the federal government.

The latest breakdown of GCIF spending cuts shows just $22 million will be cut from the current financial year, with $76 million to be cut in 2011-12, $99 million to be cut in 2012-13 and $81 million in 2013-14.

At the time, incumbent industry minister Kim Carr said the GCIF cuts originally proposed by the opposition in May would create a $10 million shortfall in meeting the government’s existing contractual obligations in this financial year.

“They would have to break contracts and they could offer no other grants ... this just proves their hostility to a modern industry,” Senator Carr told Fairfax in late May.

Speaking at Ford’s Geelong facility earlier this month, Senator Carr said Mr Abbott’s proposed budget cuts would slash the fund that helped keep the region afloat during the economic downturn.

“The Liberals will slash funding for the Green Car Innovation Fund by 50 per cent each year for the next four years,” he said.

“If you hurt Ford, you hurt Geelong. This is one of the most reckless cuts you could make to the Geelong economy. The EcoBoost (engine) is very much about securing the long term future of Ford in Geelong. Geelong is an automotive powerhouse and we will work hard to keep it that way.”

The FCAI has sought clarification on the opposition’s proposed GCIF cuts from Ms Mirabella but declined to comment on today’s official confirmation of the total $278 million cut in green-car funding.

“We are concerned the sorts of cuts outlined by the opposition will have an impact on contracts with companies that have already been entered into,” FCAI chief executive Andrew McKellar told Fairfax at the time the cuts were proposed.

“If that is the case, it would send a very adverse signal to international investors, so we need to clarify their intention. We want to understand what they are trying to achieve with these savings.”

Some analysts say the industry should think itself lucky the cuts from both sides of government have targeted the GCIF – applications for which remain open following an extensive media campaign, with each grant starting at $100,000 and being capped at $300,000 – rather than the broader and more lucrative ATS pool.

But FAPM chief Richard Reilly told GoAuto that any cut in green-car funding would have a negative impact on component suppliers in the Australian motor industry.

“Any sort of reduction in the Green Car Innovation Fund, which was obviously established to encourage R&D and the establishment of innovative projects, will affect the supply chain as one of the key beneficiaries of the fund – there is no doubt about that,” he said.

GoAuto understands that while more GCIF applications have been received, less than six have been approved since the fund opened for applications in April – including two from parts suppliers and three from car-makers including Toyota, GM Holden and Ford.

So far none of the local manufacturers have applied for the maximum grant of $300,000 under the GCIF rules, but if they did so under a Coalition government one of them would miss out on the full amount given the opposition total proposed GCIF spend would be significantly less than $900,000.

Mr Reilly said he did not believe any green-car funding contracts were in danger, but points out that any reduction in the GCIF pool will reduce opportunities for parts suppliers.

“There have been some issues with the program in terms of the uptake of it not being as well subscribed as anticipated at its launch, but I think that if further monies are proposed to be taken out of it then that certainly will affect the supply chain and the applications for funding because obviously the pool of money will be less.

“I’m not aware of any contracts being in danger. If the contract is written between the company and the commonwealth then I would have thought they will be honoured.

“(But) there will be less opportunity for manufacturers within the supply chain. Certainly any sort of reduction in the Green Car Innovation Fund will have an effect on the supply chain.

“The moneys that are in the GCIF are money that the supply chain knows about. There have been a number of applications awarded and quite a number of further applications are currently in the pipeline being looked at, so any future reduction in GCIF will have an impact in R&D and innovation in the automotive sector,” he said.

Holden is understood to have applied for about $149 million in green-car funding – almost half of its theoretical entitlement – mainly for development of the local Cruze that will be launched with an efficient 1.4-litre turbocharged engine and made at Holden’s Elizabeth plant in South Australia.

Ford has been the second biggest applicant, with about $100 million in grants, mainly to engineer the imported 2.0-litre turbocharged EcoBoost four-cylinder engine into the rear-drive Falcon for launch in 2011, along with a turbo-diesel Territory and a liquid-injected LPG six-cylinder engine for Falcon.

Toyota was the first company to take advantage of the GCIF when it received about $35 million for the Camry Hybrid that went into local production at Altona in Victoria late last year before a local launch in mid-February.

Victoria’s Labor government has now attempted to drive a wedge between business and the Liberal party, which has labelled the Camry Hybrid as a flop, in the lead-up to November’s state election.

Treasurer John Lenders has written to Toyota to reassure it of the Brumby government’s continued financial support of the company’s plan to produce 10,000 hybrid Camrys a year at its Altona plant, which falls within the federal electorate of prime minister Julia Gillard.

The hybrid Camry has attracted less than 3000 customers in Australia after five months on sale, including just 657 private buyers – well down on the Japanese brand’s original forecast of a 40 per cent private buyer take-up.

As of April, just 1686 Camry Hybrids had been sold but specific sales figures for the petrol-electric Camry (as distinct from the mainstream petrol version) have been removed from the FCAI’s official VFACTS sales report since then.

“Unfortunately, I have been forced to write this letter after the state opposition criticised our investment support for the production of the hybrid,” Mr Lenders told Toyota Australia president Max Yasuda on Friday.

“'We are proud of the fact that we have a strong working relationship with Toyota and that this has protected Victorian jobs. I hope this new stance from the opposition does not impact upon any further investment decisions by Toyota,” he said.

Mr Lenders’ letter was prompted by an attack from opposition manufacturing spokesman Ryan Smith on premier John Brumby's decision to back the Camry project with a financial assistance package believed be worth up to $35 million.

Mr Smith accused Labor of “blowing” public money on the Camry Hybrid “experiment”, which he said had fallen well short of Toyota’s sales targets despite substantial federal and state government support and '”a climate of booming car sales”.

“'It is clear that John Brumby failed to do the work required to make sure this project stacked up before he spent $35 million to ensure a series of self-promoting photo opportunities,” said Mr Smith.

“'Toyota is only committed to the hybrid Camry for as long as they are selling, and with dismal sales figures, John Brumby’s claims about supporting local jobs with this project are looking more and more shaky.

“'Victorians understand, accept and support comprehensive and well-monitored grants programs to help business, but they also expect government to be accountable on whether their money is being spent properly or wasted.”

The federal shadow industry minister echoed Mr Smith’s comments, saying a combined $70 million from both the federal and state Labor governments for the Camry Hybrid represented a flagrant waste of tax-payers’ money.

“Amid a string of overblown claims, industry minister Kim Carr originally claimed there had ‘never been a plan more important to car making’ than the one his government devised,” said Ms Mirabella, Mr Carr’s opposite number in the federal Coalition.

“He also said that schemes like the Green Car Innovation Fund were ‘the future of Australian motoring’.

“But the future is clearly looking bleak if the best Labor can do is come up with a scheme that has so far cost taxpayers a whopping $53,272 (and Victorians double that at $106,544) for each private purchase of the Hybrid Camry.

“Labor all but acknowledged the serious flaws in the program with a cut in this year’s budget, but needs to join with the Coalition in committing to further reductions.

“The Australian automotive industry has received bipartisan support from governments over many decades – but the seemingly open-ended and poorly targeted spending that is currently at the heart of this program is unacceptable.

“Mr Carr has regrettably spent much of his time as a minister scaremongering and spreading misinformation about the Coalition’s past and present policies, particularly on manufacturing.

“It’s unfortunate for Australian taxpayers that he hasn’t devoted nearly the same amount of energy to evaluating his own policies.

“Otherwise, he would have taken action to stop yet another poorly designed Labor program that continues this Government’s reckless spending.”

[fte50]

GCIF - Just a big **** by name.

Hell, GM utilised GCF $$ funding their new cruise. If this is 'Green" simply coz its a 4 cyl. it surely proves crap.
My 86 Navara would have been more green whilst new, and it had a tray to carry its own green house gasses, instead of displacing them in our environment ...

[Brazen]

I am still staggered how much it has cost Ford to add two exisiting engines and use Orbital's LPG tech. Are these Green Car fund apps audited?

[vztrt]

Originally Posted by Brazen

I am still staggered how much it has cost Ford to add two exisiting engines and use Orbital's LPG tech. Are these Green Car fund apps audited?

Ford will have to put money 1 to 1 (normally 2 to 1). These are not handouts, they are grants for R&D.

Also Ford is making the ecoboost motor RWD, which is a Ford first. This aint cheap.

[Brazen]

Originally Posted by vztrt

Ford will have to put money 1 to 1 (normally 2 to 1). These are not handouts, they are grants for R&D.

Certainly Ford has to put their money where their mouth is, Im just curious how its all audited (perhaps I dont want to know!).

Whilst its not a handout, I wouldnt even care if it is. I think a viable automotive industry is such an important asset for this country. I also think the taxpayer gets good value for money for the money put into the manufacturers.

[Gaz]

If it's like other Government funding I've been a part of, yes it is audited.

[mik]

the truth be known its probably more of a disguised tax break to keep the car companies interested in building cars here, if it was seen a tax refund/incentive everyone else in manufactureing would be holding their hands out, tax is pretty nasty in this country, and why would you stay here if you can`t make a buk.

[bobthebilda]

Originally Posted by mik

the truth be known its probably more of a disguised tax break to keep the car companies interested in building cars here, if it was seen a tax refund/incentive everyone else in manufactureing would be holding their hands out, tax is pretty nasty in this country, and why would you stay here if you can`t make a buk.

The last thing the car companies in australia would ask the federal government for would be a tax break. In order to pay a tax, you have to earn an income first, something they dont tend to do too much here.

But your nearly right. Its just another way for the federal government to find someway to put money into the manufacturers pockets.

Its so an American company like GM or a Japanese company like Toyota, can import parts from overseas, to be assembled here using (taxpayer) subsidized wages, so they can then sell them at less than cost to the middle east, thus adding $1 billion to our export revenue.

But this is not a bad thing, for it allows the middle easterns to repatriate some of the $20 billion we pay for their oil at market rates each year.

Basically its just an ego trip for the federal minister at any given time, who doesnt want to allow the australian car industry to go belly up under his watch.

[SB076]

Originally Posted by bobthebilda

The last thing the car companies in australia would ask the federal government for would be a tax break. In order to pay a tax, you have to earn an income first, something they dont tend to do too much here.

But your nearly right. Its just another way for the federal government to find someway to put money into the manufacturers pockets.

Its so an American company like GM or a Japanese company like Toyota, can import parts from overseas, to be assembled here using (taxpayer) subsidized wages, so they can then sell them at less than cost to the middle east, thus adding $1 billion to our export revenue.

But this is not a bad thing, for it allows the middle easterns to repatriate some of the $20 billion we pay for their oil at market rates each year.

Basically its just an ego trip for the federal minister at any given time, who doesnt want to allow the australian car industry to go belly up under his watch.

Actually there are over 100 different taxes in Australia levied on business - you dont have to make a profit to get taxed (some are relevant to certain industries and some are not relevant) However the government gets is share of money from having an Automotive industry.

How are Australian workers wages subsidised?

[aussie muscle]

Originally Posted by mik

the truth be known its probably more of a disguised tax break to keep the car companies interested in building cars here, if it was seen a tax refund/incentive everyone else in manufactureing would be holding their hands out, tax is pretty nasty in this country, and why would you stay here if you can`t make a buk.

that's what i was thinking, but if there was truth in advertising, it'd be called the subsidy that it is.

[JPFS1]

Thought this might be of interest. Had to use google translate... not perfect but ok.

Australia: The offer of cooperation and funding in the automotive industry for the new Czech companies

Agent of the Australian Government, Steve Bracks presented the Prague government program to encourage the Australian automotive industry. Its aim is to establish cooperation with Czech companies in production and development of cars and offer them participation in funding from Australian sources. The ambition of the government subsidized the program is to not only revive the Australian manufacturing sector as well as attracting advanced technologies and green.

The Czech manufacturer offers participation in a program to help finance research and production cooperation with Australian partners and subsequent use in global supply chains. Program entitled "A Plan for New Car and Greener Future", which will be presented in Prague on 16 July 2010 representatives of the Czech automotive industry, is focused on making environmentally friendly cars and components in Australia. This program is called the Green Car Innovation Fund (GCIF) GCIF has € 1.1 billion AUD (about CZK 20 billion) for 10 years, and is designed for the production, development and commercialization of technologies to reduce fuel consumption and pollutant emissions into the atmosphere.

The fund can gain the support of 25% of the total cost for the application of these technologies. International organizations may apply for allowance if they establish a company in Australia, or collaborate with an Australian entity and works associated with the contribution will be undertaken in Australia.

In the past, the fund benefited from the example of Toyota Australia for the production of hybrid car, GM Holden to produce a small car platform, Delta, Ford Australia to produce EcoBoost engine, for example, or the Australian Automotive SMR to produce innovative mirrors with reduced weight.

Another part of the program "A New Car Plan for a Greener Future", in which the Australian government will contribute a total of 6 billion AUD (about CZK 108 billion) during the 13th years, is to promote research and development, competitiveness and productivity. Furthermore, the consolidation of the Australian automotive industry.

The scheme was in 2009 appointed Steve Bracks (until 2007 Prime Minister of Victoria - Centre automotive industry in Australia) and John Conomos (former chairman of Toyota Australia). In the Czech Republic, the program will be presented to the Automotive Industry Association with the support of Austrade offices in Prague
(the Australian equivalent of CzechTrade). Opportunity for Czech companies in this context, there is not only manufacturers of these technologies but also for research and development organization.

Czech automotive industry in Australia is experiencing a period of renaissance. Representation in the country re-opened in 2007, Škoda Auto - and enjoys increasing popularity. A longer time in Western Australia represented by Tatra, which sells its trucks primarily in the mining industry, but an extended range modification is applied gradually to the east coast of the continent. In 2009, also set up distribution of its cars and AVIA, which is currently exporting its first cars. Australia also exported from the Czech Republic tires, measuring and testing equipment for automotive and construction industries.

Australian Government initiative seeks to reverse the negative development of automobile production in the country. In 2009, car production fell by a third to 227,000 vehicles (compared with the CR, where production rose to 975,000 cars). However Australia has a base and capacities in the field of design, design and production of not only complete cars, as well as management and braking systems, engines and transmissions. Extensive experience in Australia may also be offered in the application of so-called alternative fuels such as LPG and CNG. Hybrid and electric cars in Australia are also significant potential, considering that more than 70% of the
population lives in urban areas.

Australia's bid underlines the seriousness of personal presentation of the government agent Steve Brackse in Prague. Collaboration with Australian companies can bring the Czech research and manufacturing entities, not only the possibility of drawing on Australian financial funds, but also the subsequent expansion of the market for their products in Australia, Asia and the Pacific.

Information provided by the Consulate General of the Czech Republic in Sydney (Australia).

Date: July 14, 2010 | Source: Consulate General of the Czech Republic

[bobthebilda]

Originally Posted by JPFS1

Thought this might be of interest. Had to use google translate... not perfect but ok.

Its perfect, Bracks flew over to the Czech republic, in his "green" non polluting aeroplane, to tell this former communist country, that us Australian taxpayers will support them, if they set up some manufacturing plants here in Australia.

Without a hint of Hypocrisy, Bracks may have wanted to ask the heads of these companies, how they are able to build up a 1 million a year car industry, from the ashes of a moribund communist state, in only 20 years. Maybe the response would have been, we invest in Czech companies (instead of letting Czech taxpayer dollars fly off overseas thru subsidiaries of overseas multinationals), and we dont pay ex politicians, who know nothing about the automobile industry. And we make cars that people want to buy, not what we want poeple to buy.

[Brazen]

In all seriousness, I think this is a wonderful thing if the government is encouraging other automotive companies to invest in Australia. I always thought that VW should have a plant here to build Golfs for the asian pacific region, especially as the Golf production for this region was moved back to Germany from South Africa due to quality concerns.

A joint VW/Skoda plant in Australia could do very well especially with all the Green Car funding and various state subsidies.