Trailer Magazine


Local component producers shift from car to truck

  • Posted on Wednesday 12th, February 2020.

Automotive component manufacturers impacted by the demise of Australian car manufacturing are finding opportunities in other areas such as the local truck manufacturing industry.

According to a government report released today by Minister for Industry, Science and Technology Karen Andrews, many supply chain companies which formerly supported car manufacturing in Australia remain in business, despite the closure of the ‘big three’ car manufacturing plants in this country.

The report – Australian Automotive Industry – Transition following the end of Australian motor vehicle production – states that close to 75 per cent of supply chain companies which supplied Ford, Toyota and Holden manufacturing plants prior to their respective closures in 2016 and 2017 remain in business.

Government support was found to have contributed to this, with those impacted by the transition supported by $380 million provided by federal, Victorian, and South Australian governments together with Holden, Ford, and Toyota.

“This report shows locally-owned businesses achieved the best results by drawing on existing skills to diversify and take advantage of new markets,” said Andrews.

Effective transition has seen the supply chain businesses moving into new sectors such as truck and bus manufacturing, as well as agriculture and medical technologies.

“For future growth, electric vehicle markets offer significant opportunities for businesses to participate further in global supply chains,” said Andrews.

“Our manufacturers also have strengths in emerging areas of light weight components, battery recharging and cooling, and autonomous vehicle technologies," he said.

Meanwhile, Minister for Employment, Skills, Small and Family Business, Michaelia Cash, said the findings reinforce a recent report conducted by her own department, which found that 82 per cent of the affected workers were able to secure work and four per cent of these started their own business.

“The successful outcomes for car industry workers show what can be achieved when industry and government work together," said Cash. "The support provided included tailored career advice, skills and training assistance, health and wellbeing initiatives and job search assistance through the Government’s Stronger Transitions package."

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