Minister Announces New Assistance For Auto Industry

[ThaFlash]

ARTICLE HERE

Federal Government details its $3.4 billion 'New Car Plan for a Greener Future' to bolster the sustainability of local manufacturing
The Federal Government has announced its Automotive Transformation Scheme, aimed at promoting the next generation of automotive technologies but also as a means of ensuring Australian manufacturers get a leg up in the global marketplace.

The $3.4 billion scheme is the centrepiece of the Australian Government's A New Car Plan for a Greener Future, one that Innovation Minister Senator Kim Carr said will equip one of Australia's most important industries to compete for decades to come.

"The auto industry provides high-wage, high-skill jobs to almost 60,000 Australians. It is a critical part of our broad-based national economy," Senator Carr said.

Throughout the GFC, the Australian industry outperformed competitors across the OECD – sustaining vehicle production worth $5.7 billion in 2009, Senator Carr explained. Today, Australia is one of a small handful of nations with the full capabilities to take a car from drawing-board to show-room floor.

"Now is the time to capitalise on those capabilities," he said. "The Automotive Transformation Scheme will help vehicle and component makers get cleaner and greener products to market.

"Innovation is our great competitive edge – and with the right support, our vehicle and component makers can be world leaders."

Assistance is capped at $1.5 billion for Stage One (2011 to 2015) and $1 billion for Stage Two (2016 to 2020), complemented thereafter by an estimated $847 million in uncapped assistance for the production of vehicles from 2011 to 2017.

Carr said the scheme is governed by rigorous conditions and reporting requirements to ensure taxpayers receive value for money. Participants need to demonstrate their commitment to sustainable business operations, building workforce skills and improving environmental outcomes.

For more information on the Automotive Transportation Scheme, visit www.innovation.gov.au

[bungarra]

Why don't they just do away with GST on Australian Manufactured Vehicles. This would bring the current advertised price of the 2010 Plated XR6 50 from $36,950 down to $33590 and have the first 12months Rego and CTP allow a tax depreciation of 10% on new cars manufactured in Australia for the first 3 years of ownership. I bet that would get the cars moving.

[flappist]

Originally Posted by bungarra

Why don't they just do away with GST on Australian Manufactured Vehicles. This would bring the current advertised price of the 2010 Plated XR6 50 from $36,950 down to $33590 and have the first 12months Rego and CTP allow a tax depreciation of 10% on new cars manufactured in Australia for the first 3 years of ownership. I bet that would get the cars moving.

Because that would actually make Australian built vehicles LESS attractive to business buyers and as that is the majority it would result in the exact opposite of what you want to happen.

[bobthebilda]

Originally Posted by flappist

Because that would actually make Australian built vehicles LESS attractive to business buyers and as that is the majority it would result in the exact opposite of what you want to happen.

How does that work. If a business buys it with it no GST or gets it GST exempt or there is no GST or they pay GST and then get a tax credit, it all works out to be exactly the same price for the business.

The reason why they couldnt treat an australian made car any differently to an imported car with the GST is due to WTO rules.

[BroadyFord]

Govt has just announced the axing of the Green Car Innovation Fund as part of the spending cuts going towards rebuilding QLD.

Not good!

[jpd80]

Instead of funding to save th local industry,
Let's just go back to 25% Import tariffs on cars not built in this country,
that would certainly give plenty of money to feed Ford, Holden and Toyota.

This whole level playing field idea is only hurting local manufacturers and it's
just so the skin flints can buy cheap and cheerful Korean and Thai built cars.

The government has sold the Aussie car industry down the river and they know it because
those supposedly cheaper cars are now taking lots of jobs and income out of this country.

[bobthebilda]

Originally Posted by jpd80

Instead of funding to save th local industry,
Let's just go back to 25% Import tariffs on cars not built in this country,
that would certainly give plenty of money to feed Ford, Holden and Toyota.

This whole level playing field idea is only hurting local manufacturers and it's
just so the skin flints can buy cheap and cheerful Korean and Thai built cars.

The government has sold the Aussie car industry down the river and they know it because
those supposedly cheaper cars are now taking lots of jobs and income out of this country.

If the government put a 25% tariff on all imported cars tomorrow, your Mazda, Honda, Mitsy, Hyundai & kia will all become 25% dearer. But guess what, so will your Falcon, Commodore and your Aurion. All it will mean is that the local manufacturers may next year break even on their local manufacuring. But if Your new Falcon Buyer is going to pay 25% more for his Falcon, then maybe he will just buy a new Falcon every 4 years instead of his usual 3 years. Or he may still buy one every 3 years, but with less money to spend, he may no be able to buy things from other businesses, which may buy a Falcon Ute etc.

The government has given the car industry billions of dollars over the years, and it has squandered that money (most probably repatriated back to head offices overseas). For the sake of protecting 30 to 40 thousand jobs, it has wasted 13 million hard working tax payers money for no benefit what so ever.

[jpd80]

Originally Posted by bobthebilda

The government has given the car industry billions of dollars over the years, and it has squandered that money (most probably repatriated back to head offices overseas). For the sake of protecting 30 to 40 thousand jobs, it has wasted 13 million hard working tax payers money for no benefit what so ever.

I think that is an extremely harsh view of the money spent.
Most of those 30 to 40 thousand jobs are in parts supply network, not motor companies,
I think you'll find that most of the money given to Ford, Holden and Toyota was spent on
engineering design, local parts and equipment suppliers and not siphoned back to head office.

[g220ba]

Originally Posted by bobthebilda

The government has given the car industry billions of dollars over the years.

I would like you to name me 1 country with an automotive industry that does not have some sort of import tarriff on vehicles. Whether it be vehicles over a certain size, engine capacity or whatever it may be they all have one.

I do believe ours is one of the smallest tarriffs in relation automobiles.

[bobthebilda]

Originally Posted by 84ltd

I would like you to name me 1 country with an automotive industry that does not have some sort of import tarriff on vehicles. Whether it be vehicles over a certain size, engine capacity or whatever it may be they all have one.

I do believe ours is one of the smallest tarriffs in relation automobiles.

Well lets start with one of the biggest auto markets in the the world, the USA

Used or new and either for resale or personal use, a foreign manufactured vehicle imported into the U.S.A. generally requires duties be paid at the following rates (subject to change):
Auto - 2.5%

And i Believe that due to free trade agreements, alot get in there for free (ie from Canada and Mexico).

[Wretched]

Originally Posted by 84ltd

I would like you to name me 1 country with an automotive industry that does not have some sort of import tarriff on vehicles. Whether it be vehicles over a certain size, engine capacity or whatever it may be they all have one.

I do believe ours is one of the smallest tarriffs in relation automobiles.

I do believe Japan has no import tariffs for vehicles.

"...and tariffs in many major sectors, such as autos and auto parts, software, computers, and industrial machinery are zero."

http://www.globaltrade.net/internati...t-Tariffs.html

I am against high tariffs for the auto industry. It is up to the organisation to be able to adapt to the market and survive, not on handouts. The locals should be able to build to the market. If the product is that good it should be able to sell locally and offshore.
Consumers/tax payers should not be punished financially for shopping around for a better deal/product. We do not all need a large 4 door sedan, so what then? We have to pay extra for a car we do want because the locals can't adapt? Sorry no dice.
I do encourage incentives by the government to local manufacturers for innovation. Hopefully it would improve the product.

[vztrt]

Originally Posted by bobthebilda

The government has given the car industry billions of dollars over the years, and it has squandered that money (most probably repatriated back to head offices overseas). For the sake of protecting 30 to 40 thousand jobs, it has wasted 13 million hard working tax payers money for no benefit what so ever.

All money given is accounted for. Ford, Holden & Toyota normally put in $2 for every dollar they get.
The only reason we started doing it this way was so we could lower tarrifs so people could buy their imported cars.

....

Maybe we should do what Korea does. No import tax but an 'education fund' is added to the cost of the car.

[aussie muscle]

Originally Posted by bobthebilda

If the government put a 25% tariff on all imported cars tomorrow, your Mazda, Honda, Mitsy, Hyundai & kia will all become 25% dearer. But guess what, so will your Falcon, Commodore and your Aurion.

err, holden, ford and chrysler started local manufacturing in australia BECAUSE tarriffs where so high (at the time), obviously then they were able to make them here cheaper than direct imports.

[bobthebilda]

Originally Posted by aussie muscle

err, holden, ford and chrysler started local manufacturing in australia BECAUSE tarriffs where so high (at the time), obviously then they were able to make them here cheaper than direct imports.

I dont know what you mean by this sentence. When the australian car industry started, I doubt there would have been any protection tariffs on imported cars (apart from tax raising issues), as one wouldnt impose a "protection" tariff if there was no industry to protect.

The reasons why Americans set up manufacturing in australia, is simply on the basis that in the 1920's, 30's there were no large ship carriers to bring cars here in the thousands. The reason they stayed was because they were protected by very high tariffs and low import quotas throughout the 60's, 70's and 80's.

Brazen: Ha, you forgot to mention the 25% tariff on imported trucks, vans, pickups and SUVs - the biggest selling cars in the US!

No i didnt forget to mention it. It just wasnt mentioned. If these imports come from any of the countries that has free trade agreements with the US, then there is no tarriffs. You have Ford, GM, toyota, bmw, honda, hyundai, mazda, merc, mitsy, subaru, nissan, chrysler, tesla and others all manufacturing in US, Canada, and Mexico, the amount of vehicles that fall under the 25% tariff would be negligible.

[Brazen]

Originally Posted by BroadyFord

Govt has just announced the axing of the Green Car Innovation Fund as part of the spending cuts going towards rebuilding QLD.

Not good!

Bloody hell thats no good at all...

[bungarra]

You are right, there is no import duty on vehicles in Japan. They have a foreign investment tax for the dealer selling imported vehicles, naturally increasing the price of imported vehicles. Much the same as if a non Japanese wants ot buy property, different purchasing laws apply.

This is why many foreign vehicles in Japan are classified as luxury or prestige vehicles. A friend who's wife is Japanes explained that the price for a Falcon as an example would be the same price plus freight to the dock, but once the dealer delivered it to the client the charge was added which at the time she lived in Japan was about 40% add on. May have changed now, as this was about 5 years ago.

[Luke Plaizier]

There are still non-tariff barriers to entry. The Thailand tax on cars over a certain size is a huge one - levvied immediately after they signed an FTA with Australia and significantly reduced their import tariffs.

Announced on the radio this morning, though, was that the GCIF would now be dropped in favour of funding the Qld Flood rebuild.

Can we now say goodbye to the automative industrial sector in Australia?


Lukeyson

[aussie muscle]

well, i couldn't find any figures to support my statement, but found something that supports removal of tarriffs.

"From 1965 specification of minimum levels of local content, import quotas and considerable tariffs on imported vehicles were used to ensure Australian vehicle manufacturers were protected to a large degree from external competition.

High levels of protection proved ineffective in promoting the competitiveness of the industry. The domestic market was small in international terms, with short production runs and lack of scale economies. Consequently, production costs of domestically produced parts were high in comparison with their imported counterparts. Higher levels of Australian content in vehicles resulted in them being less competitive against imports. By the early-1980s it was recognised that protectionist policies were counter-productive to the industry and they were phased out in recognition of the increasing importance of producers attaining competitiveness from a global perspective. Tariffs, which peaked at 57% in 1984 are now down to 5% in 2010"
http://www.abs.gov.au/ausstats/abs@....005&num=&view=

[BroadyFord]

I guess the prospect of the next Falcon being imported has just moved up a few notches!

Canberra takes $926 million chunk out of car industry

http://www.goauto.com.au/mellor/mell...2578260018E484

Auto industry slams dumping of green car fund as a blow to local investment

28 January 2011
By RON HAMMERTON
THE Australian automotive industry will take a $926 million hit due to federal government funding cuts to pay for flood recovery.

The industry is furious about the junking of the Green Car Innovation Fund, with Canberra siphoning off $429 million that had been earmarked to support development programs for Australian-built cars and automotive components on a one dollar for three dollars basis.

The industry has urged the government to re-think the cuts, which it says might jeopardise projects already in the pipeline and drive them offshore to countries ready and willing to subsidise the cost to gain the business.

Also scrapped is the so-called cash-for-clunkers scheme – officially called the Cleaner Car Rebate Scheme – which was to offer $2000 grants to coax drivers into trading in old, inefficient cars for new, greener vehicles.

As well, the government will cap the number of grants for cars converted to LPG to 25,000 claims a year, slicing $96 million from the scheme over three years.

The decision to axe the Green Car Innovation Fund comes just four days after federal industry minister Senator Kim Carr announced the latest grant from the fund, $3.5 million to help Melbourne-based Alternative Fuel Innovations develop an advanced new liquid LPG injection system for the local industry and export markets.

The government had already reduced the amount of money available in the scheme by $200 million in the run up to last year’s federal election, saying it had attracted fewer applications than originally expected.

Describing the decision as “bitterly disappointing and one to be regretted”, Federal Chamber of Automotive Industries chief executive Andrew McKellar told GoAuto the scrapping of the scheme sent a worrying signal to multinational companies looking to invest in Australia.

“Up until now, there has been a lot of work done to highlight to those companies the strength of the policy arrangements here in Australia,” he said.
“We went through a comprehensive review process in 2008 – submissions were received and all the stakeholders were consulted and the government put in place a plan for the next 10 years and beyond. And there was considerable certainty there.

“When you get a decision like this, which comes less than three years after that review, it unfortunately pulls the rug out from the certainty.

“Then it is much harder for anyone to convince those international investors that they have that certainty here in Australia.”

Mr McKellar said the timing of the cuts was doubly bad because many companies that had been knocked down by the global financial crisis were finally in a financial position to invest in major programs for future products.

“In the immediate aftermath of the GFC, there was great difficulty in getting global corporations to commit to new investment projects,” he said.

“In the past 12 months or so, what we have seen is some new ideas coming into the pipeline and I am sure there are more on the way.

“It is all the more reason why a decision such as this is disappointing, because it absolutely crucial that we do encourage new investment proposals to come forward and the new opportunities for low emissions technologies to be taken up in the Australian manufacturing context.

“That is where the car plan arrangements are so important and why a program like the Green Car Innovation Fund was capable of delivering such benefits to the Australian industry.”

All three Australian car-makers – Holden, Ford and Toyota – have been on the receiving end of the scheme that kicked off at the height of the GFC in 2009 with a total budget of $1.3 billion as part of the over-arching $6.2 billion New Car Plan for a Green Future.

GM Holden received $150 million towards local production of the four-cylinder Cruze that has just begun at its Elizabeth plant in South Australia in readiness for launch in a few weeks.

Ford Australia got $42 million towards the cost of engineering its new-generation EcoBoost four-cylinder engine into its Falcon – a model that is set to arrive in showrooms later this year.

Toyota Australia was given $63 million towards its $300 million program to retool its Altona engine plant in Victoria for a new four-cylinder 2.5-litre engine for its 2011 Camry and Camry Hybrid.

The Toyota and Holden projects are highly unlikely to have gone ahead without the government handouts, with Toyota’s Thailand plant all set to take over engine production.

Grants were handed down at a rate of one dollar for every three dollars put up by the company, with component suppliers also eligible.

Mr McKellar said he had been told by the government that all agreements in which a contract had been signed would be honoured.

“Beyond that, precisely where the cut-off point will be, I think the government will need to clarify,” he said.

“I would hope it would not be an abrupt cut-off and that there would be some allowance for some proposals that are very well advanced.

“I think that is important and I think that is what we will see in how this decision is implemented.”

Less problematic for the industry is the decision to chop the cash-for-clunkers scheme that would have rewarded drivers of pre-1995 bombs by encouraging them to trade them in on new fuel-efficient vehicles.

Modelled on similar schemes in Europe and elsewhere to trigger demand after the GFC, the Australian scheme was already starting to show cracks as the need for it faded with the local car industry back to near-record sales levels.

In December, the starting date was delayed six months from January 1 this year until July 1 so Senator Carr could sort apparent problems with it.

Car companies thought the money would be more worthwhile in a European-style green-car subsidy scheme, to help promote the rollout in Australia of electric vehicles and plug-in hybrids.

The Australian Automotive Aftermarket Association (AAAA) described the clunkers scheme as “an environmental lemon”, saying it would be open to rorting.

Today, the AAAA executive director Stuart Charity applauded the decision to abandon the scheme, saying it had no redeeming features.

“It would have paid millions of Australian taxpayer dollars to overseas car-makers, it was open to rorting, and it totally ignored other less costly and more effective solutions," he said.

The LPG industry, however, is reeling after the decision to cap the number of subsidies it will give to people wanting to convert their car to LPG or buy a factory-converted new car with LPG fuel system.

The latest hit follows other decisions by the government to reduce the subsidy for cars fitted with LPG systems from $2000 to $1000 by July next year, and to introduce a fuel excise on LPG from July 1 this year, ramping up from 2.5 cents a litre to 12.5 cents over the next five years.

[vztrt]

http://theage.drive.com.au/green-mot...128-1a7ov.html

Demise of green car fund 'disappointing'
Andrew Heasley
January 28, 2011 - 12:32PM

Local vehicle projects could be axed with the Government’s decision to shut the Green Car Innovation Fund.

The federal government’s decision to axe the Green Car Innovation Fund ‘‘came out of the blue’’, industry sources have told Drive.

‘‘There was no forewarning of this,’’ a source said, saying the fund was supposed to secure the next generation of investment in new models.

The government’s decision drew a bitter response from the industry.
Advertisement: Story continues below

‘‘It is a bitterly disappointing decision and one which is to be regretted,’’ said Andrew McKellar, the chief executive of the Federal Chamber of Automotive Industries’’.

“The decision to abolish the Green Car Innovation Fund comes as an unwelcome surprise and it sends an adverse signal to international investors responsible for future investment in the Australian industry,’’ he said.

Axing the fund to help pay for flood damage has now shrouded the local industry’s future, and its 60,000 workers, in more uncertainty, with future projects and associated jobs under a cloud.

The 10-year fund, heralded in November 2008 as a $1.3 billion industry assistance package to help local manufacturers adapt to make more fuel efficient cars and reduce carbon emissions, had already had $400 million whittled away: $200 million taken from it in the 2010/11 budget and another $200 million reduction as part of the 2010 Labor election platform.

Yesterday, $234 million was axed from uncommitted forward estimates, part of $401 million forecast for future projects in the life of the fund.

The $500 million paid out to manufacturers and the tiers of numerous component suppliers was just starting to bear fruit.

Holden, the largest recipient of the fund, obtained $149 million to localise the Cruze small car and build it in Adelaide.

Yesterday, as it was digesting the news the fund was axed, Holden confirmed the Cruze project was safe.

The launch of local Cruze would go ahead, it will be built in Adelaide as planned and the recently advertised 100 new job vacancies at the assembly plant would be filled as advertised, said spokeswoman Emily Perry.

‘‘We’ve secured that funding and it’s been used in order to get that car off the line,’’ she said. ‘‘Cruze is not affected, 100 per cent.’’

But uncertainty surrounds the status of another Holden application for green car funding for a secret project that is presently before bureaucrats. It is believed the sum sought is less than Cruze project.

‘‘We know that no future applications will be able to be made to the fund,’’ Ms Perry said, ‘‘but we’re waiting to find out the status of our existing application.’’

Toyota received $35 million to make the hybrid Camry here (plus an undisclosed sum from the Victorian Government), and $63 million for its Altona engine plant upgrade. Both these projects are believed to be safe, despite the fund’s axing, as the investments have been committed.

Ford Australia received $42 million from the fund and is putting the final touches on a diesel-powered Territory wagon and is developing liquid injection for LPG and a four-cylinder Falcon.

Toyota and Ford declined to comment publicly, deferring to the Federal Chamber of Automotive Industries.

Mr McKellar said axing the fund ‘‘makes the job of selling Australia as an investment location — for the local manufacturers and the government — that much harder’’.

“The Green Car Innovation Fund has delivered significant dividends, helping to secure key investment decisions for new models and investment in more environmentally friendly vehicles and technology”, he said.

“The program was originally put in place in response to the 2008 review of the automotive industry, after extensive consultation with the industry and other stakeholders and it is a key element of the Government’s new Car Plan.

“We urge the Government not to renege on the clear policy framework which it has implemented to secure new investment and jobs in the industry. We urge the Government to re-think this decision”, Mr McKellar said.

[BroadyFord]

Support for the car industry was the one and only thing that I admired about the Rudd/Gillard governments and now they've fvcked that up.

[bobthebilda]

I dont think the axing of these funds is going to have a dramatic affect on the projects currently put in place. That money has already been spent.

The big issue that is going to surface over the next year or so, is the redundancies and cost cuttings that will come from state government departments (already starting). The biggets buyers for australian cars will be cutting back quite alot.

Broadyford: Support for the car industry was the one and only thing that I admired about the Rudd/Gillard governments and now they've fvcked that up.

Yes , but with most Labour policies, they dont take into account that good times are replaced by bad times. They'll spend money on marginal projects, and then have to react in knee jerk reactions, when the inevitable happens. But most importantly, they have decided to immediately get rid of the policies that they realised were a waste of money (ie support for a local car industry that makes cars that no one wants)

[BroadyFord]

http://minister.innovation.gov.au/Ca...CONTINUES.aspx

Media Release

Senator the Hon Kim Carr

31 Jan 2011


NEW CAR PLAN FOR A GREENER FUTURE – THE JOURNEY CONTINUES
The Government faced urgent challenges in the wake of the floods that have devastated large parts of eastern Australia. Reductions in spending and other sacrifices had to be made to help the nation fund the recovery.

As part of the response, the Government has closed applications to the Green Car Innovation Fund.

All contractual commitments and grant offers made by the Government through the Fund will be honoured; and applications received as at 27 January will be processed.

“The Government’s commitment to Australia’s automotive industry is strong and we recognise that manufacturing is a vital part of a strong and diverse economy,” Innovation Minister Senator Kim Carr said.

This is a message Senator Carr will be taking directly to global CEOs when he visits company headquarters later in the year.

“The Green Car Innovation Fund is only one component of the New Car Plan for a Greener Future,” Senator Carr said.

“The Fund itself represents an additional commitment of up to $500 million to our manufacturing sector which will leverage approximately $2 billion in total investment. The Australian Government’s partnership with the sector will be maintained. This partnership sustained investment at a time of global retreat.

Thanks to the Green Car Innovation Fund our automotive sector will be more environmentally sustainable.

“The New Car Plan is introducing new technologies in Australia at a very rapid rate from hybrid engines, electric vehicles, new fuel systems, batteries and light-weighting. The Plan is instrumental in enabling the Australian automotive industry to emerge from the global economic crisis in better shape than many of its international counterparts.

“The Plan is strengthening the automotive supply chain by underpinning investment, building capability and expanding markets internationally. The industry is providing a critical mass of design, engineering and manufacturing skills fundamental to a diverse and resilient Australian economy. The industry is producing higher-quality vehicles with high-skilled, high-wage jobs for Australians.

“The centrepiece of this plan is the Automotive Transformation Scheme, which will provide support worth $3.4 billion up to 2020.

“This continued commitment to the Plan and the range of other industry schemes administered by my Department show that we remain committed to ensuring Australian automotive manufacturers produce Australian made vehicles that are easier on the pocket and the environment.”



^^ So if a company wants to produce enviro/fuel efficient cars/technology, can they now apply to do this through the ATS?

[Brazen]

Originally Posted by BroadyFord

http://minister.innovation.gov.au/Ca...CONTINUES.aspx

Media Release

Senator the Hon Kim Carr

31 Jan 2011


NEW CAR PLAN FOR A GREENER FUTURE – THE JOURNEY CONTINUES
The Government faced urgent challenges in the wake of the floods that have devastated large parts of eastern Australia. Reductions in spending and other sacrifices had to be made to help the nation fund the recovery.

As part of the response, the Government has closed applications to the Green Car Innovation Fund.

All contractual commitments and grant offers made by the Government through the Fund will be honoured; and applications received as at 27 January will be processed.

“The Government’s commitment to Australia’s automotive industry is strong and we recognise that manufacturing is a vital part of a strong and diverse economy,” Innovation Minister Senator Kim Carr said.

This is a message Senator Carr will be taking directly to global CEOs when he visits company headquarters later in the year.

“The Green Car Innovation Fund is only one component of the New Car Plan for a Greener Future,” Senator Carr said.

“The Fund itself represents an additional commitment of up to $500 million to our manufacturing sector which will leverage approximately $2 billion in total investment. The Australian Government’s partnership with the sector will be maintained. This partnership sustained investment at a time of global retreat.

Thanks to the Green Car Innovation Fund our automotive sector will be more environmentally sustainable.

“The New Car Plan is introducing new technologies in Australia at a very rapid rate from hybrid engines, electric vehicles, new fuel systems, batteries and light-weighting. The Plan is instrumental in enabling the Australian automotive industry to emerge from the global economic crisis in better shape than many of its international counterparts.

“The Plan is strengthening the automotive supply chain by underpinning investment, building capability and expanding markets internationally. The industry is providing a critical mass of design, engineering and manufacturing skills fundamental to a diverse and resilient Australian economy. The industry is producing higher-quality vehicles with high-skilled, high-wage jobs for Australians.

“The centrepiece of this plan is the Automotive Transformation Scheme, which will provide support worth $3.4 billion up to 2020.

“This continued commitment to the Plan and the range of other industry schemes administered by my Department show that we remain committed to ensuring Australian automotive manufacturers produce Australian made vehicles that are easier on the pocket and the environment.”



^^ So if a company wants to produce enviro/fuel efficient cars/technology, can they now apply to do this through the ATS?

What a load of crap, this government should be ashamed of themselves. Pulling out of a program with no warning. The rebuilding of damaged QLD infrastructure is chump change for an economy the size of Australia and they are using it as an excuse to pull plugs on projects due to economic mismanagement.

As motoring and local car industry enthusiasts we should be sending a loud message that we dont want high-tech value adding industries used as political footballs.

The Green Car fund is used as a way to offset Australian car makers having some of the lowest tariff protection in the world, yet its outrageous they can cancel the fund and still leave tariffs low. We all know there are many other projects which could be reduced (cough, cough NBN), but the government sees fit to take a politically less dangerous position of targetting the car industry.

We threw away the aerospace industry in the 60s, now we are doing the same with the car industry.

[bobthebilda]

Originally Posted by Brazen

What a load of crap, this government should be ashamed of themselves. Pulling out of a program with no warning. The rebuilding of damaged QLD infrastructure is chump change for an economy the size of Australia and they are using it as an excuse to pull plugs on projects due to economic mismanagement.

As motoring and local car industry enthusiasts we should be sending a loud message that we dont want high-tech value adding industries used as political footballs.

The Green Car fund is used as a way to offset Australian car makers having some of the lowest tariff protection in the world, yet its outrageous they can cancel the fund and still leave tariffs low. We all know there are many other projects which could be reduced (cough, cough NBN), but the government sees fit to take a politically less dangerous position of targetting the car industry.

We threw away the aerospace industry in the 60s, now we are doing the same with the car industry.

No, you have it all wrong Brazen. ACIS and ATS were the policies that were meant to offset australian car makers for the lower Tarriffs. The green car fund was just another Labour inspired piece of stupidity that was used by the Labour Party to funnel taxpayers money to the inefficient car manufacturers.

God forbid once Yasi tears thru QLD, the government might have to ask Ford and Holden to make cars that people want to buy, in order to get the ATS.

Dole bludgers have to work for government handouts, why shouldnt those who work in the auto industry have to do the same.

[BroadyFord]

Originally Posted by bobthebilda

No, you have it all wrong Brazen. ACIS and ATS were the policies that were meant to offset australian car makers for the lower Tarriffs. The green car fund was just another Labour inspired piece of stupidity that was used by the Labour Party to funnel taxpayers money to the inefficient car manufacturers.

God forbid once Yasi tears thru QLD, the government might have to ask Ford and Holden to make cars that people want to buy, in order to get the ATS.

Dole bludgers have to work for government handouts, why shouldnt those who work in the auto industry have to do the same.

Stupid or not, the GCIF supported several meaningful projects such as Hybrid Camry, Eco boost Falcon, Cruze and a good amount of investment in component manufacturing and other associated technologies.

I can't help but think had they not had the word "green" in it, the government may not have axed it. They should have called it the 'Automotive Innovation Scheme' or the 'New Vehicle Technology Fund' etc.

[bobthebilda]

Originally Posted by BroadyFord

Stupid or not, the GCIF supported several meaningful projects such as Hybrid Camry, Eco boost Falcon, Cruze and a good amount of investment in component manufacturing and other associated technologies.

I can't help but think had they not had the word "green" in it, the government may not have axed it. They should have called it the 'Automotive Innovation Scheme' or the 'New Vehicle Technology Fund' etc.

Innovative?????? New Vehicle Technology?????????? None of the things the money went to, were Innovative or New. They were all being made overseas previously. All the Federal Government was doing, was giving tax payers money to Overseas companies to bring slightly less assembled products here.

[BroadyFord]

Can we expect more cuts to auto industry assistance after Yasi?

[fte50]

A bit of topic perhaps -
How long do you try and protect the innevitable ?.
Local Auto manufacturing has been on a constant decline over the last 2.5 decades due to the wind down of minimum local content laws, and today are far worse due to free trade agreements and the whole globalization flop. Today manufacturers just hover over the 50% local content marker purely for the sake of "Australian made advertising", as opposed to the average of 80+% marker when i was an apprentice.

I came out of Holden axed in 09 after 20 yrs of employment, and can tell from experience that our biggest threat was not ford or toyota etc, but the global GM network - as is the case with all auto manufacture today. Its basically a tender process as to which plant has capacity and will deliver the required product at budget - irrespective where in the world. For every head being cut by a major (holden,ford,toyota) there is 3-5 heads cut in the supply chain - mass unemployment adds up quick

Government handouts have in the late past gone into local r&d design projects, only to have the big cream being the actual manufacture of the part etc go offshore - some might argue atleast Australia got involved in the design, but its securing the manufacturing that is the big win and creates alot of jobs and investment.

The forgotten reality in all this decline of our manufacturing base is the loss of skill and expertise for future generations, not forgetting the fact the massive numbers of employment traditionally offered in these big firms.

Factories offer most people a chance to make a life with adequate wage to support a family etc, and for those that perhaps had a bad turn in life or were not academically gifted there was hope by putting in the hard yards to earn a living - when its all gone who will employ these sort of folks ?

IMHO, i think we will see the demise of atleast 1 manufacturer over the next decade resulting in the brand being a pure importer of its global offsprings. With this comes the cost defecit on the remaining manufacturers as supplier firms now have to rejig numbers to stay afloat having lost a major customer, yet the remaining customers trying to undercut the supplier in their constant quest of "cheaper or else".

Irrespective of government assistance etc, the attitudes and needs of the parent co's have changed and this reason alone is what makes the industry volatile and worthless - loyalty means nothing today, so how long do we continue to 'invest' tax payer $$ in selling our jobs ?

[BroadyFord]

^^ As much as I hate to say it, the entire future of FoA's manufacturing base here depends on the next Falcon. The new 2015/6 Falcon will be make or break, much like the 380. If they don't export then it will certainly be the last Ford manufactured in Australia without a doubt.

The reason IMHO that the industry continues to receive assistance is purely due to the number of jobs/innovation/skills it supports. If all 3 producers were to shut up shop, yes, there would be short term mass unemployment but one thing's for sure: you will never see car manufacturing again in Australia - once it's gone it's gone forever.

The canning of the GCIF has not sent a positive message to those who have the capacity to invest here even though many of its projects could have been produced in lower cost countries for a fraction of the cost. I believe that if we want to retain this industry we shouldn't be trying to copy what others can do better but rather harness our expertise in large car manufacture AND share that expertise AROUND THE WORLD through EXPORTS! If you want to survive you MUST EXPORT!!!

The Mondeo is built in Europe which has a much higher exchange rate than Oz and they do a fantastic job. There's no reason why we can't do the same with Falcon, Commodore or Aurion.