Jobs will go from automotive industry: government

By Tim Beissmann
March 23rd, 2012

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Despite agreeing to deliver $310 million to Holden and Australian automotive component manufacturers over the next decade, the government admits hundreds – potentially thousands – of jobs will be lost from the industry in the coming years.

In a joint statement in Canberra yesterday, at the scene of Holden’s announcement of a $1 billion-plus co-investment deal to secure its local manufacturing operations for 10 years, Industry Minister Greg Combet and Employment Minister Bill Shorten confirmed a $15.6 million extension of the program designed to help workers that leave the automotive sector.

The ministers explained the financial injection into the Labour Market Adjustment element of the Automotive Industry Structural Adjustment Program would ensure workers that lost their jobs due to restructuring in the industry would be properly assisted in finding new employment.

Shorten said the support program would provide displaced workers from eligible automotive manufacturers with “immediate access to intensive employment and training assistance” through until 2017.

The assistance, delivered through Job Services Australia, can be used to fund training courses; short-term travel and relocation costs; work clothing, uniforms and safety equipment; wage subsidies and work trials; essential work tools, tickets and licences; dental and optical services; and support, mentoring services, counselling or rehabilitation services.

While yesterday’s co-investment announcement and Holden’s commitment to produce two all-new vehicles has secured its local manufacturing future until 2022, the fate of Australia’s other two vehicle manufacturers beyond the next five years remains under a cloud.

Ford Australia announced a comparatively modest $103 million deal in January, although that deal only guarantees production of the Falcon and Territory until 2016. Both models are due to be replaced by all-new vehicles by that year.

The future also looks ominous for Ford’s Geelong-built inline six-cylinder engine. Ford Australia CEO Bob Graziano earlier this year admitted the engine would require a “significant amount of investment” to comply with stricter Euro 5 emissions regulations that will be introduced in 2016 – investment that is yet to be signed off.

Meanwhile, Toyota has not committed to manufacturing vehicles in Australia beyond 2017. In January, the Japanese-owned car maker axed 350 workers from its Altona plant, which produces medium- and large-sized Camry and Aurion sedans for domestic sale and export.

Shorten said the federal government was “firmly committed” to backing Australia’s automotive manufacturing industry, which directly employs 55,500 workers and another 200,000 in supporting sectors.

“Global pressures and the strong dollar are having a significant impact on local auto manufacturing, and the government will continue with reforms that build a stronger, sustainable economy,” he said.

“One of the best ways to ensure a strong economy into the future is to invest in our workers and their skills.”

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Hjalle

Wasnt the point of the government investing $250 Million to keep the australian car industry alive and in turn keeping jobs in the industry? How can they then a day later announce they are having job cuts! I’m sorry to say but the car industry in Australia is all over the place and really has to pull its socks up if it wants to be able to compete with the big boys over in Europe and Asia.
Rickdingo

I have a new territory and it is a fantastic vehicle People who say Australian cars are crap are just being biased or they haven’t driven a Terri or falcon or even looked at one they are streets ahead of anything else and deserve to be a success Your ignorance will cost many people their jobs and I hope you are one of them
- Phil
  
  Ah the Irony.
  
  You say the ignorant people who aren’t buying Falcoone are costing peoples jobs and you hope those ignorant people are one of the people that lose their job…….
  I hate to break it to you, but if that were the case – those “ignorant’ people would be the ones who make the falcon in the first place and would know the Falcon inside out – and that should be enough to make them NOT want to buy one.
  - john
    
    Spot on Phil. Driving by in the morning on the way to my business I was astounded by the amount of cars which were not mitsubishi’s in the car park at the Mitsubishi factory here in SA. The ignorant people are the ones buying them. The smart money is with the people building them. They know they are pumping out piles of crap so they don’t spend their hard earned money on them!
- chook
  
  Yes Rickdingo…..youre so right ……….meanwhile we have some bludgers on here telling us how bad our falcon is when they dont even own one . I encourage the owners of australian made models to now buy everything else thats imported when they go shopping , groceries furniture and so on given that so many australians rely on other sectors for their jobs . Whenever i see on the the news about people in other industries being put out of work then they just reap what they sow . What goes around comes around !!!!
JD

why cant they produce the falcon and territory for LHD markets? I still dont understand why they are constantly being bullied by the big boys in US.

I am anticipating the day ford replaces their marketing department (that is if they have one)
- davie
  
  I think you will find that it is Ford USA who are preventing Ford aus from exporting aussie built fords to LHD countries
  - Robert Ryan
    
    Correct. See my reply above.
- Phil
  
  They could produce it, but no one would buy it.
  
  What market in the world buys big 6 cylinder sedans and 4WDs?
  Too thirsty and impractical for Europe, too expensive/wasteful for developing nations like Africa/South America, too big for Asians. That leaves North America and the Middle east and they already have the Taurus and Explorer well established.
  - Robert Ryan
    
    Strange they would like to build it ,but the engine is an orphan, no matter how good it is. Then US Ford relies on the Fseries mainly F150′s and F250/F350′s as their cash cow. The problem is the F series are orphans in countries outside North America. Include, the Taurus, Explorer, Expedition and Lincoln in that list.
- Robert Ryan
  
  Try asking Ford NA who have restricted Ford Australia from exporting to other countries but give the contract to design the Ford Ranger to their Australian operation then completely leave out their North American design studios which specialize in the design and development of Pickups. No it does not make much sense.
Andrew M

The reason Ford Aus wont manufacture cars for the American market is it would be taking away from the American industry.
Same story as to why they would be not wanting american imports here.
One thing Ford Aus has on its side is that we are an RHD market which means either way there is a different assembly line needed and for Australias small volume they are better off leaving it here where it can get seperate Gov kick backs.

I doubt they would set up a new line In Thailand to supply our market with large or medium cars either.

I think Ford and Holden will continue to manufacture here because its a small unique market which pretty much runs itself.
It would have to be too much trouble to set up a line somewhere to supply our configuration of vehicles
sam123

Shorten says “One of the best ways to ensure a strong economy into the future is to invest in our workers and their skills.”…..yes! So they can do OTHER jobs when the one they had is no longer offered, NOT so they can keep doing a job that should exist anymore….they need a NEW skilll for a NEW job.
Dave S

The Govt. just needs to make it cheaper to manufacture and more expensive to import. How many times do we have to hear ‘ it’s cheaper to make them in ‘x’ and then ship them back here to sell.

We can protect jobs by making it more profitable to manufacture here.
- Dave S
  
  Why does it have to be so hard to buy something made in Australia?