Carsales Staff•2 Jun 2014
NEWS
Parts suppliers and car-makers lash out
Industry associations restate their joint opposition to budget cost-cutting measuresThe FCAI and FAPM have banded together in denouncing the federal government's latest budget, which promises to end the Automotive Transformation Scheme by the end of 2017 – with a preliminary $500 million cut to funding for the scheme during the period of 2015 to 2017.
In total the funding cuts will save the government $900 million, the FCAI and FAPM claim. The former is the Federal Chamber of Automotive Industries, representing car manufacturers in Australia, and the latter is the Federation of Parts Manufacturers.
FCAI Chief Executive Tony Weber anticipates that early knobbling of the ATS could drive the three remaining manufacturers to close their respective vehicle assembly plants even earlier – and that would have a flow-on effect for the parts suppliers too.
"There are 45,000 workers directly employed, and more than 100,000 workers indirectly employed in the automotive sector whose livelihoods are at high risk of going if these cuts go through the Parliament," Weber was quoted saying in a press release issue last week.
The demise of the ATS appears to take no account of businesses manufacturing parts in the period after the car companies become full-line importers, in October 2016 for Ford, and in 2017 for Holden and Toyota.
"We know that the three domestic car manufacturers are leaving by the end of 2017 and we are working with them to ensure the supply chain can transition out of the industry and remain intact. These cuts will jeopardise that by undermining our ability to plan for an alternative future," said FAPM Chief Executive Richard Reilly, quoted in the same press release.
Elements of the budget remain in doubt, with the current senate likely to block at least some of the applicable legislation. The campaign by the FCAI and FAPM is clearly aimed at lobbying the Palmer United Party set to take its seats in the Senate from July 1.
Tags
Ford
Holden
Toyota
Car News
Written byCarsales Staff
Our team of independent expert car reviewers and journalists
Related articles
Disclaimer
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Love every move.
Buy it. Sell it.Love it.
®Contact
Advertise with us
Local marketplaces
International marketplaces
Scan to download the carsales app
Want more info? Here’s our app landing page
App Store and the Apple logo are trademarks of Apple Inc. Google Play and the Google Play logo
are trademarks of Google LLC.