The Federal Government has today launched a $20 million Automotive Diversification Programme set to boost Australian automotive suppliers who have been struggling to deal with Toyota, Ford and Holden shuttering Australian manufacturing operations.
Applications for assistance funding, which is part of the government’s $155 million Growth Fund and is spread out over three years, opens today. The pool has been slated for developing new industries before local car manufacturing ceases in 2017.
“We are maximising opportunities for automotive supply chain firms affected by the closure of local automotive manufacturing,” minister for industry, Ian Macfarlane said.
“Supply chain firms can access the Automotive Diversification Programme to shift their focus towards the high growth industries of the future. This initiative will help to ensure that these firms continue to operate in Australia beyond 2017.”
Both Victoria and South Australia have a number of suppliers which are heavily reliant on automotive manufacturing – the program is meant to help the firms adapt to the changing economy.
“It will help firms diversify by supporting R&D, re-tooling, commercialising new ideas, expanding their businesses, or to develop export capabilities by matching business contributions on a one-to-one basis,” South Australian minister for automotive transformation, manufacturing and innovation, Susan Close said.
It is understood the program will run until 2017-18 with at least one application round per year.
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