Competitive policy needed to secure future car industry opportunities

19th May, 2008

For printable version of this Press Release please click here.

The peak body representing the Australian automotive industry, the Federal Chamber of Automotive Industries (FCAI), has handed its submission to the Review of Australia’s Automotive Industry 2008, headed by Steve Bracks.

"We welcome this opportunity to outline the significant contribution the car industry makes to the Australian economy and the future opportunities that lie ahead," FCAI Chief Executive Andrew McKellar said.

One of the key points in the FCAI submission is the need for investment support, through the Australian Competitive Investment Scheme (ACIS), to be extended beyond 2015 and that the scheme’s funding should be increased to at least partially offset changes in the competitive environment.

"The review comes at a critical time for local car makers. They’ve had to contend with rising fuel prices, the strong Australian dollar and significant changes in buying patterns," Mr McKellar said.

Australia is one of the most open and competitive markets in the world, with more than 50 vehicle brands on-sale.

The automotive industry directly employs more than 60,000 people and is the largest manufacturing industry in Australia.

It is one of the nation’s biggest investors in research and development and is the largest exporter after mining, generating export earnings of around $5 billion a year.

"The outcomes of this review are of critical importance to the future of the Australian industry, but with the right policy arrangements in place there is every reason to believe the industry will meet the challenges it is now facing," Mr McKellar said.

For further information contact:
Sheena Ireland, Communications Manager
P: 02 6229 8221
M: 0458 038 555
E: sheena.ireland@fcai.com.au

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