Minister Announces New Assistance For Auto Industry

[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]

Originally Posted by bobthebilda

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.

I agree with you to an extent there. There were some new technologies that were being developed by local component firms such as products in the LPG sector as well as Ford investing from the GCIF to keep I6 production going in Geelong - which sadly is like shifting deck chairs on the Titanic.

The Hybrid Camry and 2.5L Camry engine seems a bit weird though - no one in their right mind would invest $300 million to build engines here that can be done for a third of the price in Thailand AND THEN export those engines back to Thailand given current exchange rates, on their own accord without government funding.

Having said all that, if the government hadn't wasted billions of dollars on crap such as BER and pink batts, we would still have a car scheme that, despite its flaws in targeting the right investment as you point out, would be creating jobs and keeping Australians in work.

[vztrt]

Originally Posted by bobthebilda

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.

AFI got money for actually producing a straight gas LIPG. Something that ford still hasn't got right.

[bobthebilda]

Originally Posted by vztrt

AFI got money for actually producing a straight gas LIPG. Something that ford still hasn't got right.

No VZ. read the articles

http://www.startupsmart.com.au/finance/2011-02-01/start-up-secures-$3.5-million-lpg-grant.html

The important part of the article is, "it is hoped the technology will". It hasnt been done yet, still working on it.

Reading the article, it was very interesting to note who the CEO was. Lets just say, whilst well known in the auto manufacturing area, this is a completely new field for him. Me thinks it wasnt a government grant for the idea, it was a grant because the CEO knew how to get the grant.

[vztrt]

Originally Posted by bobthebilda

No VZ. read the articles

http://www.startupsmart.com.au/finance/2011-02-01/start-up-secures-$3.5-million-lpg-grant.html

The important part of the article is, "it is hoped the technology will". It hasnt been done yet, still working on it.

Reading the article, it was very interesting to note who the CEO was. Lets just say, whilst well known in the auto manufacturing area, this is a completely new field for him. Me thinks it wasnt a government grant for the idea, it was a grant because the CEO knew how to get the grant.

So you obviously know whats going on inside the company to rubbish them like that.

[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.