New prime minister-elect Tony Abbott said Australia’s car industry needs to show how it intends to boost volumes and exports if it is to continue to get government support.
“There will continue to be a high level of assistance to the motor industry. We expect the motor industry in return for that high level of assistance to provide us with a reasonable indication of how it is going to increase volumes, particularly increase export volumes,” Abbott said.
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“I want the car industry in this country to have a long-term, viable future – I don’t want it to live from hand to mouth. I accept that government has a role in bringing this about; I also believe the industry has a role in bringing this about,” he said.
Ford has already announced it will stop making cars in Australia from 2016 while Holden and Toyota have committed to making cars there until at least 2020 if they get continued support.
All three carmakers said they would be keen to sit down with the government.
Holden is expected to make a decision on its long-term manufacturing future next month as it holds talks with its US parent, General Motors, to secure funding for new generations of the Commodore large car and Cruze small car to be built in Adelaide.
Toyota is working on a business plan to introduce a third model to its Melbourne production line.
Abbott said a priority for the new federal government would be winding back the AUS$25 a tonne (US$23.40) carbon tax, a move that alone would save Australia’s carmakers about AUS$460m (US$430m).
