From the lobby:
Holden’s decision to shut down its local manufacturing operations by 2017 is a severe setback for Australian industry and the many people and businesses linked to the auto sector in this country,” Ai Group, Chief Executive, Innes Willox said today.
“There are two big challenges presented by today’s announcement which will be defining opportunities for government and industry. The first is to ensure that appropriate transitional support is provided for the employees and businesses directly affected by this decision. The second challenge is to make sure we find new ways to stimulate and develop our manufacturing capabilities in the absence of the role that Holden has played so well for many decades.
“There is a very important role for federal and state governments and for industry in meeting these challenges. With the right policy settings and industry attitude, Holden’s workforce can move into new areas where their skills can contribute to growing Australia’s manufacturing and innovative capabilities and we can develop new sources of industrial strength.
“Holden’s decision will directly affect all the companies and people working in the automotive manufacturing sector. Collectively, around 3,000 businesses are directly linked into the automotive supply chain. They contributed around $5.5 billion to Australian value added in 2011-12, including $1.9 billion worth of exported cars and $1.6 billion in exported auto components.
“These automotive businesses employ 45,000 people nationwide, equivalent to around 5% of the total manufacturing workforce. 17,000 are employed directly by the three assembly firms, Ford, GMH and Toyota, while around 28,000 people work in the auto supply chain businesses. Up to another 50,000 people (another 5% of the manufacturing workforce) are employed in other parts of manufacturing and related activities that will also be affected, as they supply basic materials, machinery and services to the highly advanced automotive supply chain. All of these businesses and people now face a high- risk environment as Holden now follows Ford in announcing they will take their auto assembly operations out of Australia.
“The auto sector has long played a pivotal role in the development of Australia’s manufacturing capabilities and it generates significant benefits that extend well beyond the assemblers and their extensive supply chains. Many of Australia’s leading manufacturers employ managers and skilled employees who cut their teeth in the auto industry and who spread into the broader industrial landscape the experience and know-how nurtured in the auto sector.
“The sector adds materially to Australia’s efforts in research, development and design and it contributes indirectly to product and process innovation across the economy. In 2011-12 alone the auto industry invested nearly $700 million in research and development. These investments bring important spill-over benefits to many other parts of manufacturing and to the economy more broadly.
“Given the importance of this industry, it is vital that the Government now acts decisively to ensure a strong and dynamic industrial sector in Australia,” Mr Willox said.
