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Transitioning Australia’s automotive manufacturing industry

Ford, Holden and Toyota have ceased manufacturing in Australia. However they maintain a significant Australian presence through sales and distribution, engineering services and design and product development.

The Australian Government’s initiatives to support regions and communities affected by the wind-down of the car manufacturing industry include the:  

  • Automotive Transformation Scheme which encourages competitive investment and innovation in the automotive industry through to 2020
  • $100 million Advanced Manufacturing Fund which includes:
    • $10 million for an Automotive Innovation Labs Program to build automotive test facilities and increase access to design and test facilities for automotive products 
    • $5 million for an Automotive Engineering Graduate Program to increase the pipeline of highly trained graduate engineers into Australia’s automotive sector
    • $47.5 million for the Advanced Manufacturing Growth Fund helping car-related businesses move into other industries in South Australia and Victoria
  • $155 million Growth Fund which provided an assistance package between 2014 and 2018 to help automotive workers and supply chain businesses.

The Growth Fund delivered the:

  • Automotive Industry Structural Adjustment Programme to help redundant automotive workers find new jobs
  • Skills and Training Initiative to help workers build on existing skills and gain capabilities to transfer to new jobs
  • Automotive Diversification Programme funding to help automotive supply chain firms capable of diversifying to find new markets
  • Next Generation Manufacturing Investment Programme support to accelerate private sector investment in high value manufacturing sectors in Victoria and South Australia

Improving the automotive sector

We are working to improve relationships between new car dealers and manufacturers. See how we are consulting on changes to the Franchising Code of Conduct to help the automotive franchising sector.

In 2015, a Senate Inquiry looked into the Future of Australia’s Automotive Industry. See the Australian Government response to the Senate Economics Reference Committee report.

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Last updated: 13 May 2021

Content ID: 43791