Australia’s prime minister John Howard has announced a US$52.5m financial assistance package to car manufacturer Ford Australia, designed to encourage the company to keep manufacturing operations in Australia.

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In a statement, Mr Howard said Ford would use the money for two new projects which would help secure its manufacturing operations in Australia over the longer term.


He said the projects would help create 273 new jobs at Ford.


Ford would also receive assistance from the Victorian state government, he said.


Mr Howard said US$40 million would be used on a project involving the design, engineering and manufacture of the next generation Ford Falcon and Territory vehicles at two Victorian plants, in Geelong and Broadmeadows in Victoria.

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The remaining US$12.5 million would go on a project involving the design and engineering in Victoria of a light commercial vehicle, which would then be manufactured overseas under the Ford name.


“The light commercial vehicle project will involve the construction of a new R&D facility by Ford Australia in Victoria,” Mr Howard said.


“This will not only serve to position Ford Australia for the global market, but will significantly strengthen Australia as Ford’s major design and engineering centre within the region.”


Mr Howard said the government assistance was conditional on an undertaking by Ford that it would give the Australian automotive component sector every fair and reasonable opportunity to supply the necessary components for the projects.


“I very much encourage the Australian automotive component sector to work closely with Ford Australia in order to take full advantage of these exciting opportunities,” he said.