Manufacturing News

$6.5 million for automotive components makers

Ten companies in the automotive components sector have received $6.5 million worth of grants today.

In a joint statement, Victorian manufacturing minister Richard Dalla-Riva, South Australian manufacturing minister Tom Koutsantonis, and federal industry minister Greg Combet announced the grants under the Automotive New Markets Program.

"These grants will assist firms to develop a range of exciting new capabilities including robotics, precision components, accident avoidance and high-intensity floodlighting," said Combet.

The grants are funded by the Victorian and federal governments through the $35 million Automotive New Markets Initiative, and administered by them and the South Australian government. Their aim is to encourage manufacturers to diversify their products and improve productivity.

The money will help “enable our automotive suppliers to build their commercial base while maintaining the capacity to service existing automotive customers," said Dalla-Riva.

Eight of the companies – including Australian Arrow, Chassis Brakes, APV Automotive Components and Bosch – are located in Victoria. The other two are SA-based.

The problems in the auto parts industry are threatening the viability of the country’s car makers Ford, Toyota and Holden, and come after Ford retrenched 212 workers last Friday and parts maker Autodom was put in receivership.

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