The Rudd government has announced a $6.2 billion plan designed to boost the automotive industry in Australia, and make it more “economically and environmentally sustainable by 2020”.
Called the ‘Green Car Plan’, it will include a $1.3 billion ‘Green Car Innovation Fund’ which will be provided to Australian car manufacturers, with the opportunity to receive further funding if they design and sell environmentally-friendly cars.
The government will match industry investment in ‘green cars’ on a $1 to $3 basis over a ten-year period from 2009.
The plan is part of the government’s strategy to transform the local economy into a “low-carbon emission, internationally-competitive economy of the future”, according to a statement from the Prime Minister’s press office.
The new plan is designed for 13 years, and is based around manufacturing competitive, low-emission, fuel-efficient vehicles in Australia.
“It will create well-paid, highly-skilled green jobs for the future,” says the statement.
The plan is expected to generate $16 billion in investment in the Australian automotive industry over the 13 years.
The plan is also tipped to work in four key areas. It is designed to:
• Attract new investment in long-term, sustainable vehicle production;
• Green the industry — improving fuel efficiency and reducing carbon emissions;
• Strengthen the local supply chain and boost skills; and
• Link to international supply chains and improve market access for Australian manufacturers.
In addition, automotive tariffs will be cut to 5 per cent, giving Australia the third-lowest tariff regime among economies with a well-developed automotive industry.
Australia will also continue to pursue a free trade agenda.
“The $7.7 billion automotive industry is critical to Australia’s economic future because it employs over 60 000 Australians, and is critical to national R&D and exports,” says the statement.
“Automotive manufacturing sits at the core the nation’s manufacturing effort, because building a modern car involves almost every advanced technology we use, from microchips to light metals.
“Only 15 or so countries in the world can design, engineer and build a car from scratch and we are determined to maintain that capacity.”
For more information, visit www.innovation.gov.au/automotivereview