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Ford 4WD project great news for local industry.



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FORD 4WD PROJECT GREAT NEWS FOR LOCAL INDUSTRY

The Minister for Industry, Science and Resources, Senator Nick Minchin welcomed today’s announcement from Ford Australia that its Australian 4WD production plans have received in-principle support from the Ford head office in Detroit. 15 November 2001

15 November 2001           01/466

FORD 4WD PROJECT GREAT NEWS FOR LOCAL INDUSTRY

The Minister for Industry, Science and Resources, Senator Nick Minchin welcomed today’s announcement from Ford Australia that its Australian 4WD production plans have received in-principle support from the Ford head office in Detroit.

“The Federal Government looks forward to the project receiving unqualified approval from the Ford Motor Company in due course,” said Senator Minchin.

If formally approved, Ford will start production of 4WD vehicles in 2004, with annual production volumes growing to 32,000 vehicles a year in 2007. 

The vehicles, designed to tap into the fastest growing segment of the vehicle market, will boost Ford’s total production volumes significantly. Initial investment in the project is expected to be $500 million, with around 400 new jobs directly created within Ford.

There will also be significant flow-on benefits to Australia’s automotive supply industries.  Ford Australia will be assisted in bringing this project to fruition through the Government’s post-2000 automotive assistance arrangements, the $2 billion Automotive Competitiveness and Investment Scheme (ACIS) and 5-year tariff freeze at 15 per cent.

“Ford will receive substantial benefits from ACIS that will go towards building and supporting this new vehicle project. The main objective of the five year ACIS scheme is to encourage increased levels of investment, innovation and production in Australia”, said Senator Minchin. 

“Ford’s new vehicle project is a perfect example of what can be achieved by this industry under the Coalition Government’s automotive policy settings”.

“The Government’s actions in abolishing the wholesale sales tax, bringing forward full input tax credits for business purchases, and in managing an economy that has delivered strong fundamentals with sustained growth, low inflation and low interest rates have also assisted the industry”, said Senator Minchin.

Bringing forward full input tax credits for business purchases alone is expected to increase motor vehicle sales by approximately 40,000 over the next year.

“The year 2001 has produced many highlights for the automotive industry including record exports, a fifth straight year of excellent sales and the start of several exciting and innovative new projects”, Senator Minchin said.

“Led by companies such as Ford Australia, the Australian automotive industry has a very promising future.  I look forward to seeing the industry continue to build on its achievements in 2002”.

Media Contacts:  Jennifer Eddy, Senator Minchin’s Office, 02 6277 7580 or  0419-432-664

CMR548-01

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