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Good News for Australian Car Industry!

At last some good news to report for the Australian car industry!

Kevin Rudd announced today a $6 billion package to safeguard the car industry in Australia.  Whilst significant assistance was expected following the Bracks review, the size of this ‘bailout’ has come as quite a surprise to many industry experts.

The package, intended to stem further job losses in manufacturing as well as steer the industry towards a more eco-friendly and sustainable future has won support from unions, car makers and consumers across the country.

Here are the key points:

  • $3.4 billion assistance program from 2011 to 2020;
  • $79.6 million to the Automotive Competitiveness and Investment Scheme to smooth the transition to a greener automotive industry; 
  • $116.3 million to improve competitiveness in the automotive component manufacturing sector; 
  • $20 million from 2009-10 to help suppliers improve their supply chains; 
  • $6.3 million from 2009-10 for an enhanced market access program; 
  • A new Automotive Industry Innovation Council comprising key industry decision makers to drive innovation and reform; and, 
  • An immediate $10.5 million expansion of the LPG vehicle scheme that doubles payments to purchasers of new vehicles using LPG technology.

Importantly Rudd has confirmed that the planned reduction in the automotive tarrifs from 10% to 5% will go ahead in 2010 which is fantastic news for Australian car buyers.