While it’s the end of the road for Australian car manufacturing, it could be the beginning of a new era for the local air conditioning industry.
The federal government's review into manufacturing in South Australia and Victoria has led to a reassessment of taxpayer-funded industry support, with the air conditioning sector likely to be a direct beneficiary.
The review follows Toyota’s announcement it will cease car production in 2017, sharing the same fate as Ford and Holden.
In the wake of the announcement, the federal government has made it clear it is committed to developing local manufacturing, giving it priority over propping up multi-nationals that are unlikely to survive in the long term anyway.
As part of the review, a meeting was held last month between Prime Minister Tony Abbott, Industry Minister Ian Macfarlane and SA manufacturers.
Macfarlane said Australian manufacturing has a strong future and the aim of the review is to create jobs, capitalise on new markets and new products.
In his presentation to the review, Seeley International executive chairman Frank Seeley supported government funding to establish a national centre to monitor energy efficiency in air conditioning products.
“The federal government needs to assist the development of new technologies and to help accelerate the commercialisation of new and innovative products by assisting with the rapid expansion of production facilities,” he said.
The government is currently reviewing the panel meeting report. At last it looks like the days of multi-national vehicle manufacturers relying on taxpayer funds to survive are gone.