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NEWS
Vic Govt lends support for LPG proposal
Migration from full vehicle production to large-scale LPG installation could create 500 new jobsGas Energy Australia (GEA) and VACC have jointly concocted a plan to "reinvent Australia's car manufacturing industry" in the wake of scheduled plant closures in 2016 and 2017.
And the plan, formative as it is, has received the blessing of the Victorian government, according to a press release issued today by VACC.
Back in February VACC presented its deliberations – with assistance from GEA – to the Victorian government for consideration. At the time, VACC Executive Director, David Purchase observed that the total cessation of local vehicle production in 2016 and 2017 would leave a massive hole in the fabric of the Victorian and South Australian economies.
"For the first time since 1948, Australia faces a future without domestic car making. In the space of nine months, Ford, Holden and, just recently, Toyota have announced they will stop manufacturing cars in Australia. So we have to face up to this and examine different ways to employ people and maintain an automotive industry," Purchase was quoted saying in a statement issued by VACC.
The plan called for conversion facilities to be established in Melbourne, Geelong and Adelaide – presumably from existing production infrastructure owned by Ford, GM-Holden and Toyota – and with a 'Centre of Excellence' based in Melbourne to oversee the enterprise.
Leading the charge, VACC contends that the plan would provide efficient LPG conversion for up to 45,000 new-generation LPG-fuelled vehicles each year. It would boost Australia's energy security, contribute to lower CO2 emissions and employ up to 500 staff.
As of today, the Victorian state government has agreed to support a steering committee to look further into the proposal.
"Given that Ford, Holden and Toyota will cease car manufacturing in Australia at the end of 2017, we must seize all employment, production and regeneration opportunities in the automotive industry," Purchase said today.
VACC has a vested interest in maintaining some level of vehicle production (or conversion, in this case), as it will stimulate technical training throughout the country. Even with the end of local manufacturing at least two years away, there's a shortage of properly qualified mechanics in Australia, estimated at 19,000, VACC claims. The plan to re-utilise existing manufacturing plants for vehicle conversion to LPG may re-awaken interest in the automotive industry.
GEA also welcomed the Victorian government's involvement in the plan.
"We look forward to working with the Premier, Minister for Manufacturing, David Hodgett and the Victorian Government," said GEA CEO, Mike Carmody.
"We hope support for this project in Victoria will lead to automotive industry partners coming on board and also stimulate interest from the Federal Government."
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Written byCarsales Staff
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