Senate Launches Inquiry Into Australian Auto Industry, VACC Approves

Uncertainty surrounding the future of Australia’s automotive industry has prompted a new Senate inquiry, which has now been referred to the Senate Economics References Committee and to report by the first sitting day in November 2015.

Titled ‘The Future Of Australia’s Automotive Industry’, the inquiry is designed to be an all-encompassing review of where the industry might stand in the lead up to 2017.

Ford will exit the local manufacturing scene in around two years from now, with Holden and Toyota to follow a year later.

But the recent departure of Holden’s local boss after just seven months in the top job - and operating losses from all three local carmakers this year - has prompted fear that one or more of the carmakers won’t go the distance.

Rumours of an ‘early departure’ for Holden began almost as soon as the carmaker announced its plans to continue until 2017, but the carmaker insists it will continue until then with or without Federal Government support.

A report from the Productivity Commission earlier this year recommended a virtual ‘end’ to the local industry for carmakers, saying the Automotive Transformation Scheme (ATS) should not continue beyond 2017.

Industry