On 30^th October the Federal Treasurer Joe Hockey and Industry Minister Ian Macfarlane jointly announced the Terms of Reference for a Productivity Commission Inquiry into Government support for Australia's automotive manufacturing industry, including passenger motor vehicle and automotive component production.

The Productivity Commission has been asked to examine the Australian automotive manufacturing industry's current structure, productivity, investment, profitability, international competitiveness, exports, workforce structure and practices, skills levels and long-term sustainability.

The Commission is to release a preliminary findings report by 20 December 2013, and to provide a final report to the Government by 31 March 2014.

Despite the economic value of independent aftermarket manufacturing in Australia, under current Government programs manufacturers that do not provide product for fitment to Australian made passenger vehicles are unable to access Federal Government support for the automotive industry.  The variation here is not the components that are produced; the variation is the final customer. If the customer is not one of the Australian based multi-national vehicle producers, the component producer is not considered to be part of the Government’s “vision” for the automotive industry.  We believe that the end customer should not determine the Government attitude to classifying this industry. 

The AAAA has already had a meeting with Industry Minister Macfarlane in his Parliament House Office and we will put together a comprehensive submission to the inquiry on behalf of our independent aftermarket manufacturers.  We are hopeful that this process, which will leverage off the significant work we have done over the last four years in building awareness at a Federal and State Government level of the value and potential of the automotive aftermarket in Australia, will ensure that any future automotive assistance will be targeted at the activity rather than the end customer.  We will keep you updated on progress with the Inquiry via this newsletter.