Prime Minister Kevin Rudd's $6.2 billion rescue package for the car industry will help encourage investment in the struggling sector, car parts makers say.
Federation of Automotive Products Manufacturers (FAPM) president Zoran Angelkovski says the package will help drive major changes needed to keep the industry going, by boosting international competitiveness and a shift to environmentally friendly car production.
"The new policy sends a positive signal to Australian and international firms that Australia values its automotive manufacturing industry and wants to attract new investment, particularly in research and development and in sustainable products and manufacturing processes," Angelkovski says in a statement.
He says it is pleasing the new Green Car Innovation Fund will be open to component manufacturers and that FAPM will "enthusiastically support" the new Industry Innovation Council.
Rudd announced on Monday an extra $3.2 billion for the industry, taking the total level of federal government assistance to $6.2 billion between 2008/09 and 2020/21. A total of $3 billion has already been committed.
Source: IndustrySearch