Certification Body Opens Australian Office
David Hassall
15 July 2008
www.goauto.com.au
Australian exports made easier with the arrival of international approval office.
International vehicle certification authority (VCA) has established an office in Australia that should make it easier and cheaper for local car makers and suppliers to service global export markets.
The British government-owned organisation, which has offices around the world and does official third-party type approval for most countries apart from North America, launched VCA Australia in Melbourne earlier this month.
The establishment of a globally recognised agency in Australia will streamline the certification of vehicles that have been designed and engineered here for international markets as well as those manufactured locally for export.
Holden, Ford and Toyota are heavily involved in international development programs for their parent companies and employ thousands of design and development engineers, but certification of the vehicles overseas has been an expensive and time-consuming operation.
Certification is required on all vehicles to ensure they meet the growing number of international standards applied around the world, ranging from air conditioning and headlight performance through to crashworthiness and emissions.
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Industry Backs Garnaut Plan
David Hassall
8 July 2008
www.goauto.com.au
The local car industry has given its support to a proposal to introduce a carbon emissions trading scheme (ETS), even though it will add at least six cents a litre to the price of petrol and diesel.
Including fuel in the ETS was the most controversial – but nevertheless expected – aspect of the draft report on climate change handed down last Friday by government advisor and economist Professor Ross Garnaut.
The trading scheme – which the report recommends should be introduced as soon as 2010 – would also directly affect local manufacturing industries, putting further pressure on Australia’s three embattled car makers in an already difficult market environment.
However, the chief executive of the Federal Chamber of Automotive Industries, Andrew McKeller, told GoAuto that the car industry “acknowledges the need for it to shoulder its share of the burden”.
GM Holden spokesman John Lindsay said it was too soon to say if the cost of emissions trading would affect car prices but that Holden supports the scheme.
“We are supportive of the view that ETS has to have as broad a coverage of greenhouse gases as possible since one tonne of CO2 has the same impact on the environment whatever its source,” said Mr Lindsay.
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Carr Heads To US For Green Car Talks
AAP
11 June 2008
www.drive.com.au
Federal Industry Minister Kim Carr will meet major carmakers Ford and General Motors in the United States to discuss "green" plans for the car industry in Australia.
The trip to the US car making capital of Detroit follows Tuesday's announcement that the federal government would provide $35 million to Toyota to develop a new hybrid Camry at its Melbourne plant.
The funds are from the new Green Car Innovation Fund and Victoria is adding a further $35 million to the project.
Senator Carr flew out of Japan after Tuesday's announcement to meet leaders at Ford and GM to canvass opportunities for the Australian car manufacturing industry.
"This is an industry that's been under a bit of pressure," Senator Carr told reporters in Japan.
"The government wants to work with the industry in meeting the challenges of the future, and that means reducing the impact on people's wallets and reducing the impact on the environment."
Senator Carr said the impact of the car industry in Australia flowed on to other industries.
"I mean, building a skills base for automotive also means we have the skills capacity to build a fighter aircraft," he said.
PM Sets Out Vision For Car Industry
AAP
5 June 2008
www.smh.com.au
Fuel efficient and hybrid cars will be the centrepiece of a new plan for the Australian car industry, Prime Minister Kevin Rudd says.
The industry is already under review, with an inquiry headed by former Victorian premier Steve Bracks.
Mr Rudd said it was time to confront the challenges of climate change and soaring oil prices, and the need to reduce fuel consumption.
The industry had reinvented itself before and it needed to do so again, he said.
"Two decades ago, the industry needed a plan to consolidate, increase its efficiency and lift its international competitiveness," Mr Rudd told Parliament in a ministerial statement marking World Environment Day.
"Today it needs a new plan to drive the development of next generation fuel efficient vehicles to help motorists' budgets and to help the environment.
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Holden's Submission To ACIS Review
CarPoint Editor
27 May 2008
www.goauto.com.au
Australia is a "high cost country" for vehicle manufacturing, says GM.
There are relatively few surprises in Holden's submission to the ACIS (Automotive Competitiveness and Investment Scheme) industry review.
The submission, released to the media last week, nominated the strength of the Australian dollar -- as much, if not more than tariffs -- as the principal issue affecting the competitiveness of local manufacturing. Not only does the value of the 'Aussie' potentially lead Holden's parent company to reconsider exports from the Elizabeth plant, but it also places hurdles in the path of attracting R&D efforts in Australia.
In the submission, Holden admits that the local market is increasingly diversified (or "fragmented" as it's explained in the executive summary) and this is detrimental to 'scale', meaning relative profitability of a locally-built product range limited to perhaps one market segment.
Holden is calling for wage restraint and effectively points the bone at the mining industry, an industry that has provided the impetus for the economy's recent growth -- but with unskilled labour frequently being paid massively more than the market could justify in a slower growing economy.
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Ignore Us At Your Peril, GM Tells Oz Government
James Stanford
27 May 2008
www.goauto.com.au
GM Asia Pacific president Nick Reilly has warned the Australian federal government to ignore the local manufacturing industry at its peril.
Mr Reilly, who visited Holden’s headquarters in Melbourne last week to help formulate future model and production plans, said local manufacturing was at risk due to the soaring value of the Australian dollar that has slashed export profits.
He said the resources boom, which was the driving force behind the growth of the economy and the value of the Australian dollar, had also forced up wage costs which was putting more pressure of the local manufacturers.
On the eve of the review into the local automotive industry headed up by former Victorian premier Steve Bracks, Mr Reilly said Australia should not let its manufacturing industry die just because other parts of the economy were booming.
“The economy has done very well because of the boom in commodities and that has led to the strength in the Australian dollar which is fine, but it is going to affect manufacturing generally and Australia has to have an export component to its manufacturing whether it be cars or anything else,” he said.
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Industry States Its Case To Bracks Review
Marton Pettendy
20 May 2008
www.goauto.com.au
FCAI asks Bracks auto review to extend ACIS beyond 2015 but stays divided on tariffs.
The continuation of financial assistance from the federal government beyond 2015, to compensate for the strength of the Australian dollar and changing consumer tastes due to record fuel prices, is the key recommendation within the Federal Chamber of Automotive Industries (FCAI) submission to the Review of Australia’s Automotive Industry.
The FCAI submission was revealed on Monday this week (May 20), just over two months ahead of the July 31 deadline for the review’s final report to be tabled by former Victorian Labor premier Steve Bracks, and will be accompanied by submissions from Australia’s car-makers and vehicle importers.
“The key recommendation that the industry is pushing for is that the investment support provided through ACIS (the federal government’s Automotive Competitiveness and Investment Scheme) be continued beyond 2015, and that we ensure that the effectiveness of that program is enhanced to at least partially offset what has occurred in terms of a change in competitive environment over the past few years,” FCAI chief executive Andrew McKellar told GoAuto today.
Officially, the FCAI has requested that the value of ACIS support should be augmented and the program should be extended beyond 2015.
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Carr Strives To End Unfair Trade Deals
James Stanford
7 May 2008
www.goauto.com.au
Industry minister to broker fairer FTAs after concern over Thailand trade imbalance.
The Rudd government will not make the same mistakes as the previous Howard government when it comes to negotiating future free-trade agreements and protecting the interests of Australian car manufacturers, according to federal industry minister Kim Carr.
Speaking exclusively to GoAuto in Melbourne last week, Senator Carr moved to assure the Australian automotive industry that the federal Labor government would learn from the 2005 free-trade deal with Thailand, which he acknowledged was a cause for concern among local car-makers and had resulted in a one-way flow of vehicles from the South-East Asian manufacturing hub to Australia.
“I think it is fair to say that there are some concerns, particularly in automotive, about the relationship between the Thai government assistance programs and the operations of the free-trade agreement, particularly the issues in regard to excise,” Senator Carr told GoAuto.
“While there has been an exponential growth of imports from Thailand, we have no measurable export of motor vehicles to Thailand.
“Passenger vehicles imported from Thailand since the agreement was signed in 2002 have increased by 356 per cent, whereas we have no recognisable exports to Thailand.”
Senator Carr said the federal government was committed to ensuring that future free-trade negotiations produced “agreements that do allow for proper access (for Australian manufacturers)”. He pointed to non-tariff barriers as issues that would need to be considered in future agreements.
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Trade Talks
Marton Pettendy
15 April 2008
www.goauto.com.au
Government trades comments on tariffs with industry as the industry review nears.
Political posturing continues to be played out in the lead-up to the release of a final report on the Australian automotive industry by Steve Bracks on July 31.
Federal small business minister Craig Emerson used last Wednesday’s Federal Chamber of Automotive Industries (FCAI) annual general meeting to warn local car-makers and importers to prepare for lower import tariffs.
Speaking at a dinner the same day, which was also attended by deputy prime minister Julia Gillard, FCAI president John Conomos said the federal government needed to be more demanding than the previous Liberal government when it came to negotiating free trade agreements (FTAs).
Mr Conomos’ comments came as prime minister Kevin Rudd prepared to raise the possibility of signing an FTA with China, among other discussions with China’s premier Wen Jiabao the following day.
Mr Conomos said the former Howard government’s brokering of the FTA with Thailand in January 2005 had not delivered “genuine reciprocal sales access” to that nation, which continues to impose prohibitive sales taxes on imported large cars, preventing exports from Australian car-makers.
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Green Carr Shift
Marton Pettendy
10 April 2008
www.goauto.com.au
The Federal Government has moved to allay fears by some industry quarters that the lion’s share of its $500 million Green Car Innovation.
Fund, which aims to assist the manufacture of low-emission and fuel-effi cient vehicles in Australia for fi ve years from 2011, will go to the likes of Toyota for the production of its proposed Camry Hybrid.
Speaking at the launch of the Greening the Supply Chain initiative between GM Holden and the World Environment Centre, which aims to promote sustainable development among Australian automotive industry suppliers and is part of the Australian government’s $7.2 million Supplier Capability Development Program, the minister for innovation, industry, science and research, senator Kim Carr, said last week the government was “agnostic” when it came to technologies that will promote an environmentally sustainable vehicle manufacturing industry.
Providing the clearest indication yet of the types of technologies for which the government will consider fi nancial assistance, Senator Carr said a range of vehicle and transport systems will be considered as part of a review into the Australian automotive industry by former Victorian Labor premier Steve Bracks, who issued background and discussion papers on March 31 and has called for public submissions ahead of his final report to government on July 31.
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Car Making Has Bright Future: Toyota
Tim Dornin
11 April 2008
www.drive.com.au
Mitsubishi may have closed its car assembly operations in Adelaide, but vehicle manufacturing has a long-term future in Australia, rival producer Toyota says.
A local car builder since 1963, Toyota wants to continue, according to senior executive director of sales and marketing David Buttner.
The company is the clear sales leader in the domestic market and has a strong export focus.
Along with Ford and Holden, it has also built around it a core group of local suppliers, who themselves often have export programs or production agreements with major companies in Japan and the United States.
But like manufacturers in all industries, Toyota wants to ensure its Australian operations can be sustainable in the long run.
Crucial to that end will be the federal government's review of the car industry, which will take a particularly close look at government assistance and tariff protection.
It will also make an assessment of the challenges and opportunities currently facing the auto sector, including how those challenges and opportunities might impact on its long-term viability and sustainability.
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Toyota Cool On Hybrid
David Hassall
10 April 2008
www.goauto.com.au
Unlike the government, Toyota is not hell-bent on winning a hybrid contract.
Toyota Australia is not counting on the apparent lure of the Federal government’s much-touted $500 million Green Car Innovation Fund to get a Camry Hybrid into production in Australia.
In fact, the company’s executive director of sales and marketing David Buttner – the man who put local hybrid production on the agenda two-and-a-half years ago – told GoAuto this week that the government had yet to fully explain the fund, which has been linked with the current Review of the Automotive Industry.
However, even though industry review chief Steve Bracks said he had been asked to include the Green Car Fund in his review, he told GoAuto that the terms of reference wouldnot allow it to consider tax breaks for moreenvironmentally friendly fuels.
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Holden Launches Green Supply Plan As Auto Review Nears
Marton Pettendy
3 April 2008
www.goauto.com.au
GM Holden jockeys for position in the lead-up to the Bracks auto industry review.
The Federal Government has moved to allay fears by some industry quarters that the lion’s share of its $500 million Green Car Innovation Fund, which aims to assist the manufacture of low-emission and fuel-efficient vehicles in Australia for five years from 2011, could go to the likes of Toyota for the production of its proposed Camry Hybrid.
Speaking at yesterday’s launch of the Greening the Supply Chain initiative between GM Holden and the World Environment Centre, which aims to promote sustainable development among Australian automotive industry suppliers and is part of the Australian government’s $7.2 million Supplier Capability Development Program, the minister for innovation, industry, science and research, senator Kim Carr, said the government was “agnostic” when it comes to technologies that will promote an environmentally-sustainable vehicle manufacturing industry.
Providing the clearest indication yet of the types of technologies for which the government will consider financial assistance, Mr Carr said a range of vehicle and transport systems will be considered as part of a review into the Australian automotive industry by former Victorian Labor premier Steve Bracks, who issued background and discussion papers on March 31 and has called for public submissions ahead of his final report to government on July 31.
“The government will contribute one dollar from the fund for every three dollars put up by industry. We are agnostic about the technology – hybrid, hydrogen combustion, hydrogen fuel cell, flexible fuel (petrol-ethanol), clean diesel, LPG – they are all on the table. So are technologies to make vehicles lighter and more aerodynamic,” he said yesterday.
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GM Holden To "Green" Its Supply Chain
GM Holden
2 April 2008
www.holden.com.au
GM Holden and the World Environment Center (WEC) are joining forces to launch a program to help GM Holden and its suppliers improve their environmental performance.
Announced today at GM Holden’s Port Melbourne headquarters, the “Greening the Supply Chain” program is aimed at promoting sustainable development at every link of the supply chain in Australia’s automotive industry.
Seventeen of GM Holden’s suppliers from Victoria and South Australia have signed up to be involved in the program.
GM Holden’s Executive Director of Corporate Affairs, Alison Terry, said that this was an important opportunity to improve the sustainability of the manufacturing processes in the supply chain.
“This program represents GM’s latest efforts in its long term commitment to support the development of Australia’s automotive industry. We certainly expect to generate tangible benefits for our suppliers in terms of improved energy efficiency and water reduction,” Ms. Terry said.
“It is a great opportunity and the number of suppliers who are putting up their hands to be involved in the program is very encouraging.”
The WEC is an independent, global non-profit, non-advocacy organisation that advances sustainable development through the business practices of member companies and in partnership with governments, multi-lateral organisations, non-governmental organisations, universities and other stakeholders.
The “Greening the Supply Chain” program was initiated by the WEC and has been launched in Mexico, Brazil, Romania and China where significant energy efficiency, environmental and water conservation improvements were reported.
The program will follow in the footprints of a similar undertaking at GM China that was completed in August 2007. Here, experts worked with GM suppliers to provide guidance and technical support for improving manufacturing processes so that they enhanced their environmental performance and also reduced operational costs.
GM Holden’s Executive Director of Manufacturing, Rod Keane, described the program as a great opportunity that fits perfectly into GM Holden’s wider environmental strategy.
“GM Holden strives to meet the highest standard of environmental performance in all its activities and we are strongly committed to introducing environmental initiatives and improving systems already in place,” Keane said.
“GM Holden works on the principle that emissions and waste can be prevented or minimised by the use of innovative technologies and environmentally compatible materials.
“We welcome the expertise of the WEC, particularly in light of the success they achieved in GM China.”
WEC’s President and CEO, Terry F. Yosie, described the “Greening the Supply Chain” project as a major focus for the WEC.
“The aim of the GM / WEC partnership is to demonstrate the ability to achieve specific, measurable results that improve competitiveness across the supply chain through the application of sustainable development practices,” Yosie said.
This project joins other environmental programs launched by GM Holden including the installation of a sophisticated computerised energy monitoring system at the Fisherman’s Bend plant to optimise the energy efficiency of the furnaces and compressed air distribution plants.
A number of water saving initiatives have also been launched aimed primarily at reducing water consumption in Holden’s engine production area. The results of these have seen the total water consumed per engine produced drop by over 38 per cent, from 930 litres per engine in 2002 to 576 litres per engine in 2007.
Bo Andersson, group vice president, GM Global Purchasing and Supply Chain said they were pleased that a number of GM suppliers were participating in the program.
"It gives the suppliers the chance to improve their environmental performance, while increasing their global competitiveness. This initiative is a win-win for everyone,” said Andersson.
Car Industry Question Time
David Hassall
1 April 2008
www.goauto.com.au
There were, as we expected, more questions than answers when former Victorian premier Steve Bracks presented the Australian automotive industry review’s interim report in Melbourne yesterday.
Mr Bracks, who is heading the panel appointed by the Federal Government, presented a 41-page background paper and a 23-page discussion paper, containing data and information already well-known to the industry along with 59 questions designed to stimulate discussion before the final recommendations are made.
The questions start with the big one – Is the Australian automotive industry sustainable in the long term? – and cover a broad spectrum, including the possible introduction of tougher emissions standards.
Calling on “anyone with an interest in the local industry” to put forward their views, Mr Bracks said it was critical to receive submissions to identify a broad range of issues and challenges facing the automotive sector.
It is expected that a great deal of focus will be on the government’s two key assistance regimes – the $7 billion Automotive Competitiveness Investment Scheme (ACIS) and import tariffs, which are scheduled to go from 10 per cent to five per cent in 2010 and then to zero in 2015.
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Bracks To Orchestrate New Car Plan For Australia
James Stanford & Marton Pettendy
14 February 2008
www.goauto.com.au
Former Victorian premier Steve Bracks has been appointed to head up a crucial review of the Australian vehicle manufacturing industry.
The long-serving Labor member has been given the position by the new federal Labor government, prompting the opposition to label the appointment as a case of “jobs for the boys.”
The automotive review will consider the impact on Australia's automotive industry of the new-vehicle import tariff (which is scheduled to drop from 10 to five per cent in 2010), free-trade aggreements, the Automotive Competitiveness and Investment Scheme (ACIS), changing buyer tastes and climate change, among a host of other issues.
Minister for innovation, industry, science and research Kim Carr said the study would also guide the implementation of the government's planned $500 million Green Car Innovation Fund.
He said the environment in which the Australian vehicle and component makers operate has changed dramatically over the last 10 years and claimed the previous government had been “asleep at the wheel”.
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Local Eco Cars 'Now'
Terry Martin
15 February 2008
www.goauto.com.au
Pressure mounts on Federal Government to fast-track $500 million green fund.
THE Australian Greens have urged prime minister Kevin Rudd to bring forward his $500 million Green Car Innovation Fund in the wake of last week’s decision to close Mitsubishi’s car manufacturing operations in South Australia.
SA Greens MP Mark Parnell said the green fund – announced in March last year and “designed to kick-start the manufacturing of low-emission vehicles such as hybrid, flexible fuel and low-emission diesel vehicles” – was not due to commence until 2011.
The details of its establishment will be part of the car industry review to be completed by July 31, and to be headed by former Victorian premier Steve Bracks.
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