Victoria Steps Up to Boost Automotive Manufacturers

10 Dec 08

Acting Minister for Industry and Trade John Lenders said the Victorian Automotive Manufacturing Action Plan (VAMAP) would provide a roadmap for the local automotive industry through to 2013 and establish the groundwork for sustained growth into the future.

“The Brumby Labor Government is taking action to ensure the Victorian auto industry can turn changing global economic conditions into opportunities to build future growth, secure and create new jobs and develop more innovative products and practices,” Mr Lenders said.

“Our $15 billion automotive industry is vitally important to the state and although it is facing a formidable range of competitive, technological and environmental challenges, it has the experience, the resources and the outstanding niche capabilities to succeed.”

Mr Lenders said the new action plan formed part of the $245 million Building Our Industries for the Future package and is underpinned by three elements:
• A Business Development Program to develop the international competitiveness of companies at all levels of the supply chain;
• Identification of opportunities and facilitation of access by Victorian firms into global supply chains; and
• Investment in new technologies including hybrids and alternative fuels.

“The initiatives will be focused on developing the next generation of capability and components for new programs such as the Toyota Hybrid Camry and the Ford Focus,” Mr Lenders said.

“We will work with companies to identify the capabilities of our industries and match those with the requirements to build the new components, technologies and processes for a stronger and sustainable auto industry.

“Our assistance to component companies will be to assist them in prototype, design, proving capability to develop new technology and to work with research institutions.”

Mr Lenders said key VAMAP initiatives included programs to develop Tier 1 and Tier 2 supplier capabilities, promote Lean manufacturing, identify critical gaps, encourage rapid introduction of new technologies, obtain overseas market intelligence and support technical presentation visits.

“Victoria has attracted significant new investments including Ford’s injection of over $21 million to extend the life of its Geelong engine plant, the forthcoming local production of the Ford Focus and Toyota Hybrid Camry,” he said.

“To achieve these wins during a period of intensifying competition and unprecedented change underlines the enormous future potential of automotive manufacturing in Victoria – VAMAP will help to ensure that potential is realised.”

Mr Lenders said VAMAP was a cooperative program that had been developed in close consultation with the local industry.

“The $6.7 million plan also complements the Federal Government’s New Car Plan for a Greener Future by addressing the immediate challenges facing the industry today and giving the industry the certainty it needs to invest in the vehicle technologies of tomorrow,” he said.

Victoria’s automotive manufacturing sector accounts for more than 60 per cent of the national industry and employs around 35,000 people.

Source: Premier of Victoria media release

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