Quick to react to claims published today in The Australian newspaper, the Federal Chamber of Automotive Industries (FCAI), has issued a press release refuting the claims made in The Australian article.

The article in The Australian claimed that “the Australian motor industry has warned the Government that the viability of ‘two or even three’ of the nation’s car makers is in doubt”.

The article also claimed that Toyota, Ford, Mitsubishi and GM Holden last month warned the Government that future investment in the industry was in doubt and that they had recently written to the Government on this issue.

“These claims and other claims made in the article about the industry’s representations to Government are wrong,” said the chief executive of the FCAI Andrew McKellar.

Mr McKellar said no such letter exists, nor has there been any industry discussion on industrial relations matters as suggested in The Australian’s article. He went on to say that the extent of the competitive challenge facing the industry was well understood by each vehicle manufacturer and by their employees.

It is the FCAI’s opinion that vehicle manufacturers have built a constructive relationship with their employees and it is essential that this remains the case, while Australian vehicle manufacturers agree that it is appropriate that a broad ranging review of automotive industry policy arrangements should be undertaken as a matter of priority.

Both the Government and the Opposition have already committed to undertake such a review early in 2008 and the industry had welcomed this commitment and the opportunity to present its views on the future direction of policy arrangements.