Australia's Car Industry Lobby Slams Think Tank over Subsidy Concerns

The Australian car industry lobby has clashed with a think tank over suggestions that taxpayer subsidies may fail to save Holden from collapse. The Centre for Independent Studies has argued that Holden's parent company, General Motors, would sell off its global brands and liquidate the Australian operation if it filed for insolvency. In contrast, the Federal Chamber of Automotive Industries has dismissed the think tank's arguments as "cynical" and "plain wrong," citing a restructuring plan provided by GM to the US Treasury.

Key Takeaways:

• The Centre for Independent Studies has suggested that Holden would be liquidated if General Motors filed for insolvency and sold off its global brands.
• The think tank has argued that government funding to build green cars is a form of "old-fashioned protectionism hiding behind a green smokescreen."
• Federal Chamber of Automotive Industries chief executive Andrew McKellar has dismissed the think tank's arguments as "cynical" and "plain wrong."
• GM sees Holden as a "viable operation" and has given it a restructuring plan to the US Treasury, indicating a long-term commitment to the business.
• The research paper by the Centre for Independent Studies has argued that the Australian car industry is "facing existential difficulties" and that government funding is not a solution.
• Scrapping import duties and abolishing the luxury car tax would do more to encourage consumers to buy fuel-efficient cars, according to the Centre for Independent Studies.
• The Federal Chamber of Automotive Industries has argued that the government's $1.3 billion green car fund has attracted innovation into Australia and facilitated innovation in new technologies.

Statistics:

• The Australian government has committed $6.2 billion over the next decade to upgrade factories and equipment in the car industry.
• GM has provided a restructuring plan to the US Treasury, indicating a commitment to Holden as a "viable operation" (AAP).
• The government's $1.3 billion green car fund has been used to build fuel-efficient cars, including a four-cylinder Holden and a hybrid Toyota Camry (AAP).

Sources:

• Asia Pulse, "Australia's car industry lobby slams think tank over subsidy concerns" (March 17)
• Centre for Independent Studies, "The Plan is Plain Wrong" (research paper)
• Federal Chamber of Automotive Industries, statement by chief executive Andrew McKellar (AAP)
• General Motors, restructuring plan provided to the US Treasury