VACC Welcomes Co-Investment in Australian Automotive Manufacturing

MELBOURNE – March 23, 2012: VACC, the peak automotive industry body in Victoria, has welcomed the recent announcement by the Federal, South Australian and Victorian Governments, to continue to invest in local automotive manufacturing.

The Gillard, Weatherill and Baillieu Governments have confirmed $275 million will be invested to secure the future of GM Holden car manufacturing in Australia. The ten year plan will see Holden invest $1 billion into car manufacturing in this country.

“This is good news for Australia’s car manufacturing industry and good news for the automotive industry as a whole, including suppliers and members of the retail, service and repair sector,” VACC Executive Director, David Purchase, said.

“VACC believes passionately that Governments should support the local automotive industry with continued financial assistance. This announcement is a clear indication that the Government is doing all it can to ensure local manufacturing continues to be a major employer and significant contributor to the economy.

“This year, the Federal Government has tied up deals to secure jobs and growth in the automotive industry. It has announced co-investment in GM Holden, which will make two next generation vehicles until at least 2022 in Australia, and, earlier this year, it announced a $103 million co-investment program in Ford Australia, securing production of the Falcon in Victoria until at least 2016.

“VACC recently wrote to the Minister for Industry and Innovation, Greg Combet, to encourage him to be an outspoken advocate for assistance for local manufacturers, including the automotive industry. We also urged him to make his catchcry ‘invest in Australia’.

“Credit where credit is due: we acknowledge the endeavours of Mr Combet and his predecessor, Senator Kim Carr, the Prime Minister and the Australian automotive manufacturers for their continued support for this industry.

“However, supporting the industry and investing in Australia are not just about money. Support for the industry needs to go deeper and the investment needs to also be about state of the art training, about skills development and about keeping Australian manufacturing at the forefront. We, the business sector and the community, need to consider doing business with local manufacturers even where the latter may not be quite as competitive as an overseas competitor,” Mr Purchase said.