Car Plan Invests in Future of Automotive Manufacturing

The Motor Trades Association of Australia (MTAA) welcomes the Government’s much anticipated response to the Bracks Review of the Australian Automotive Industry.

‘A New Car Plan for a Greener Future’ (New Car Plan) is a well articulated and considered policy response to the environmental challenges of transferring to a carbon restricted economy. The Government’s decision to assist and cooperate with vehicle and component manufacturers during the adoption of green vehicle technology is innovative and recognises the complexities of the global supply chain. The mutuality of obligation which underpins the New Car Plan illustrates the need for a united response from industry and Government and acknowledges that investment in innovation requires long term commitment and support from all parties.

MTAA considers that the framework of the New Car Plan, which is based upon conditional support based upon timelines and quantifiable measures, is a sensible and measured response to the challenges facing the Australian automotive industry and will achieve its objectives of creating a technologically innovative, greener and profitable manufacturing sector. The commitment of $6.4 billion dollars of targeted assistance illustrates the Government’s commitment to the future of Australia’s automotive industry and is supported by MTAA. The Association particularly welcomes the announcement of the doubling of the LPG vehicle scheme for new vehicles. This represents an immediate and tangible response to the issue of climate change and may stimulate vehicle sales.

The reality of the current financial circumstances, which have beset the automotive retail sector, requires a considered and timely response from Government. This is particularly the case if the overall objectives of the New Car Plan, which is to secure the future of Australia’s vehicle manufacturing industry, are to be achieved. MTAA has been working closely with the Government on the matter of dealer financing and supports the efforts of Government taskforces to develop a strong policy response to the tightening of wholesale and retail credit within the sector, circumstances which are part of a global phenomenon and are not unique to the Australian market.


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10 November 2008

For further information please contact Verity Jausnik of MTAA on (02) 6273 4333.