Australia’s transition away from car manufacturing going strong, says government

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Supply chain companies which formerly supported car manufacturing in Australia remain in business, despite the closure of the Ford, Toyota, and Holden manufacturing plants, according to a government report released today by Minister for Industry, Science and Technology Karen Andrews.

About 75 per cent of former supply chain companies remain in business following the closure of the car manufacturing plants in 2016 and 2017, the Australian Automotive Industry – Transition following the end of Australian motor vehicle production report found.

Government support was found to have contributed to this, with those impacted by the transition supported by $380 million provided by federal, Victorian, and South Australian governments together with Holden, Ford, and Toyota.

“This report shows locally-owned businesses achieved the best results by drawing on existing skills to diversify and take advantage of new markets,” Andrews said.

Effective transition has seen the supply chain businesses moving into new sectors such as truck and bus manufacturing, as well as agriculture and medical technologies.

“For future growth, electric vehicle markets offer significant opportunities for businesses to participate further in global supply chains.

“Our manufacturers also have strengths in emerging areas of light weight components, battery recharging and cooling, and autonomous vehicle technologies.”

Meanwhile, Minister for Employment, Skills, Small and Family Business, Michaelia Cash, said the findings reinforce reinforce a recent report conducted by her own department, which found that 82 per cent of the affected workers were able to secure work and four per cent of these started their own business.

“The successful outcomes for car-industry workers shows what can be achieved when industry and government work together. The support provided included tailored career advice, skills and training assistance, health and wellbeing initiatives and job search assistance through the Government’s Stronger Transitions package,” Cash said.