'Car Rapid Transit' subsidies

[#Metro]

Ugh!

http://brisbanetimes.drive.com.au/motor-news/government-to-meet-us-car-makers-20111216-1oxe1.html

Earlier this month Holden chief Mike Devereux said the current level of government assistance was not sufficient to attract the next round of long term investment from automotive parent companies. Pointing to the decision earlier this year to divert $800 million from the now defunct Green Car Innovation Fund to Queensland flood relief, Devereux also said long term funding stability was crucial to the survival of the industry.

Senator Carr, stressing that he believed in government partnership investments, not handouts (previously delivered as a three-to-one co-investment with car makers), said he was seeking extra funds, which could come from within the existing $5.4 billion car plan, or other related areas including the climate package and research and development funds.

This isn't OK. These car manufacturers make millions of dollars of profit every year. Why the hell do they need subsidies to do what they were going to do anyway!
$5.4 BILLION DOLLARS

That money could be better spent on training and reskilling pacakges to get people out of a dead industry that has been on Federal government life support funds under all sorts of guises for decades!

[#Metro]

''We are now producing less cars than we were in 1957'', he said ''We need to recalibrate the approach we take to ensure the ongoing viability of the industry'', he said.

''There is considerable pressure as we move towards global platforms, and we need to ensure that we maximise the local content and preserve jobs for Australians, particularly given how important these jobs are for providing a platform for skills in so many other industries''. He was ''absolutely confident'' Australia could retain three manufacturers in Australia ''if the right policy settings are in place.

$5.4 billion divided by 500 00 workers in this industry works out to be around $1 million dollars each in subsidy.

[somebody]

Where'd you source the 50 000 workers from?  Besides, that works out at $100k/worker.

[#Metro]

Its in the article.

Why don't they put that $5.4 billion into something like Cross River Rail.

[Set in train]

I am completely against market distortion via protectionist tariffs for car makers. It must be ended.

[#Metro]

http://brisbanetimes.drive.com.au/motor-news/mission-to-rescue-car-industry-20120105-1pmyu.html

A GOVERNMENT minister has been dispatched to Detroit in a desperate attempt to rescue the Australian car industry.

Kim Carr's mission has become all the more pressing since sales figures confirmed the Holden Commodore and Ford Falcon had taken their biggest hit in more than half a century.

After 15 years as the top seller, the Commodore has slipped to second place and the Falcon dropped to ninth after posting its weakest result in the 51-year history of the model. The Minister for Manufacturing is expected to meet the top executives from General Motors and Ford next Monday, on the eve of the Detroit motor show.

Shock horror! People are using the BUZ...

[somebody]

No, they are referring to other cars selling better than Australian cars.  Not Australian car sales overall being declining (which they may be - I'm not sure).

[petey3801]

Maybe people are finally realising that having a fuel guzzelling car really isn't sustainable and costs waaaaaaaaaaaaaay too much to run!

[Arnz]

I'd suspect most consumers may likely be 'downsizing' their cars to the smaller ones.  Many Sedans are fuel-guzzling those days.

[Gazza]

I'd suspect its cos other cars are better.

The whole bailout of the US Auto industry made me laugh....They would have been successful companies if they stopped building ugly cars.

[HappyTrainGuy]

And not made out of plastic coughcorvette.

[#Metro]

http://brisbanetimes.drive.com.au/motor-news/future-of-ford-plants-far-from-assured-20120108-1pq7w.html

Here we go again-- this has been going on for at least 20 years... same old same old, government funding drips in under different guises. They are playing brinkmanship.

The federal government's decision to cut the Green Car Innovation Fund last year has dismayed manufacturers, as has the recent demotion of Senator Carr.

Holden's chairman, Mike Devereux, has warned the government that reduced support will endanger continued investment by General Motors. But Mr Hinrichs said Ford would not follow a similar course of public lobbying or complaint.

This is what I think should happen: Shut down car production and build BUSES, even Light Rail. Forget about Australian Cars- there is huge demand for buses and likely LRT and trams in the future.

[#Metro]

http://brisbanetimes.drive.com.au/motor-news/coalition-moves-into-reverse-over-plan-to-cut-car-subsidies-20120111-1pviw.html
Forget Cars! Make buses!

Coalition moves into reverse over plan to cut car subsidies

THE federal opposition is rethinking its plan to cut $500 million from car industry assistance as a new political consensus emerges about the need for taxpayer subsidies to protect Australian manufacturing jobs.

[Jonas Jade]

I wonder, if the governments so bent on maintaining manufacturing jobs, why don't the feds put in a "subsidy" or incentive for state govs to get their trains/LRVs etc from fully local manufacturers?

For example with Light rail, this could assist with Melbourne, the pending expansion of Sydney's network, and Adelaide's as well along with future GC expansion, so could be sustained for a fairly long time. I know that it may mean standardisation vehicles across the country.

[#Metro]

Subsidies can be regarded as a form of protectionism or trade barrier by making domestic goods and services artificially competitive against imports. Subsidies may distort markets, and can impose large economic costs.[2] Financial assistance in the form of a subsidy may come from one's government, but the term subsidy may also refer to assistance granted by others, such as individuals or non-governmental institutions.

http://en.wikipedia.org/wiki/Subsidy

I don't really believe in handing out subsidies to industry unless there is a really good reason for it (no, the job being inherently 'Australian' doesn't cut it for me). If they dumped car subsidies - which have been going on for as long as I remember - and actually built things that were in demand (buses, trams, LRT, rail) then that would actually be useful.

It is like you buy a car and not only do you pay for it but then everyone else pays for your car as well! Hell to the no!! That's why we have public transport!

Forget cars! Build buses!