Car component makers are finding it hard to struggle with the increasing job cuts in the automotive industry that turns over $11 billion a year. They have warned that nearly 30,000 jobs and an $800 million export industry will be lost without government assistance.
The AAAA says “federal funds are being allocated to the three carmakers and their suppliers, but the rest of the component industry has been ignored.”
The government’s $35 million package is to support only those supplying local vehicle manufacturers.
Executive director of the Australian Automotive Aftermarket Association (AAAA) Stuart Charity said “the Federal Government will only provide financial support for component makers who deal with the three Australian car makers – there’s no help for the hundreds of others who provide employment by producing goods for export and local sale”.
Charity explained “there has been a significant loss volume replacement parts – spark plugs, oil filters, fan belts and so on – that up to 15 years ago used to be made in Australia. That business has gone offshore’’.
More than 30,000 people are employed in the manufacture of aftermarket products and 75 per cent of the 300 manufacturing companies are exporters, reports the Herald Sun.
Dave Smith of the Australian Manufacturing Workers Union says more needs to be done to help the car industry.
"The vehicle industry is doing very tough at the moment but there are some things that can be done to support the industry, procurements is one at a federal and state level," he said.
“We’re not looking for special subsidies or co-investment funding. We simply want equal access to Federal Government automotive industry programs that support innovation and export for Australia, once a major designer and manufacturer of car parts,” added Charity.