The Australian Automotive Aftermarket Association (AAAA) has welcomed the passing of the ‘National Reconstruction Fund Corporation Bill 2022’.
The Bill will establish a $15 billion Australian manufacturing fund, making $5 billion available from its commencement.
The fund will target transport manufacturing and supply chains for cars, trains, and shipbuilding. Many Australian automotive manufacturers will be well placed to benefit, leveraging their skills and knowledge to rebuild Australia’s industrial base says the AAAA.
“We are delighted to see the automotive industry specifically targeted in this new Fund. Australia has a critical role to play in the global automotive industry and we believe new technology for vehicle propulsion will see our industry grow and increase in significance,” AAAA chief executive Stuart Charity says.
“With many of our members looking at ways to adapt their business for the future, we are pleased to see this commitment which demonstrates that the government has a strong focus on the whole of the automotive supply chain. We are gearing up for EVs, alternate fuels and new modification kits for global platform vehicles. We have a vision in which Australia continues to play an important role in the world automotive market,” he says.
Australian Automotive Product Manufacturers and Exporters’ Council (APMEC), chair Arnold Mouw also welcomed the new Fund.
“The whole of the automotive manufacturing supply chain is interested in the new technology roadmap,” Mouw says.
“If we are to keep up with and indeed, lead the world in automotive and transport technology we need to be harnessing our home-grown initiatives and supporting our industries to have a vision for the future and make the right investments,” he says.
AAAA says it has long stated that the automotive manufacturing industry is missing out on targeted investment, causing some to go offshore to be cost-competitive. It says this hurts homegrown innovation and R&D which is crucial for the nation to be a world leader in advanced manufacturing.
“We hope that with the passing of this Bill, many automotive manufacturers will be eligible for funding opportunities to expand their businesses and help build and maintain Australia’s manufacturing self-sufficiency,” Charity says.
“With the success of similar manufacturing funding models in other countries, AAAA looks forward to engaging with Minister Husic on how we can best achieve shared goals for the Automotive Manufacturing Industry,” he says.
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