Crisis will put 'brake' on Aussie green cars
16 Nov 2008 1:24 PMBy Stephen Johnson
SYDNEY, Nov 14 AAP - Holden and Ford may be too poor to develop a green carin Australia, even with government help, as the global financial crisis threatens the survival of their Michigan-based parent companies, analysts say.
The Rudd government more than doubled its green car innovation fund this week to1.3 billion, pledging to give car makers $1 for every $3 they spent on developing an environmentally-friendly vehicle.
But with General Motors and Ford on the verge of a crash, a veteran car industry watcher says Australia's motoring future may lie with little-known Chinese and Indian car companies.
ANZ senior industry economist Julie Toth says the dire state of America's car giants meant Holden and Ford Australia would not get the necessary funding from Michigan to develop a green car, even with a federal government subsidy on offer.
"They may not have the funds to take advantage of that ... I'm not sure thegovernment assistance will benefit them," Ms Toth said.
Federal Chamber of Automotive Industries chief executive Andrew McKellar says the global financial crisis was a concern for the car industry.
"Many people in the industry around the world are obviously concerned by what's unfolding at the moment," Mr McKellar said.
"These pressures are exacerbated by the current financial crisis.
"There are very few global car makers that are immune from that."
However, Mr McKellar says local car makers would invest funds into developing greener technology, with government help, as market conditions normalisein the medium term.
Industry analyst John Mellor, who also publishes goauto.com.au, says with Michigan in a parlous financial position, emerging Asian car companies wouldfind Ford Australia or Holden a good buy.
Mr Mellor said Indian car maker Tata, which recently bought Land Rover and Jaguar from Ford, should consider buying all or part of Ford Australia.
He suggested China's Shanghai Automotive Industry Corporation, which has a majority stake in Rover, think about buying Holden from General Motors.
"Chinese car markers need to learn very quickly how to develop cars to Western standards," Mr Mellor said, adding the emerging Asian car companies would be in a good position to take advantage of Australia's green vehicle fund.
So far, only Toyota, the world's No.1 car maker and Australian market leader, has taken advantage of the federal government's green car program.
Earlier this year, the Japanese giant accepted a35 million federal government grant to build a hybrid version of its four-cylinder Camry sedan in Melbourne from 2010.
The Victoria government gave another35 million.
Amid the financial turmoil, the big three US car makers General Motors, Ford and Chrysler have asked the US government for a loan guarantee ofUS25 billion ($A37.51 billion).
Ms Toth said US President-elect Barack Obama's Democratic party was likely to be in favour of a car industry bailout package.
"The Democrats are very committed to supporting manufacturing, particularlythe auto industry," she said.
However, Democrat Senator Chris Dodd, who is also chairman of the Senate Banking Committee, said a rescue plan for the US car industry would be unlikely to pass Congress until after Obama succeeded George W. Bush as presidenton January 20.
Australia's auto industry has been allocated6.2 billion worth of assistance over the next 13 years.
AAP sajlk
(EDS: repeating from Friday)
By Stephen Johnson
SYDNEY, Nov 16 AAP - Holden and Ford may be too poor to develop a green carin Australia, even with government help, as the global financial crisis threatens the survival of their Michigan-based parent companies, analysts say.
The Rudd government more than doubled its green car innovation fund last week to1.3 billion, pledging to give car makers $1 for every $3 they spent on developing an environmentally-friendly vehicle.
But with General Motors and Ford on the verge of a crash, a veteran car industry watcher says Australia's motoring future may lie with little-known Chinese and Indian car companies.
ANZ senior industry economist Julie Toth says the dire state of America's car giants meant Holden and Ford Australia would not get the necessary funding from Michigan to develop a green car, even with a federal government subsidy on offer.
"They may not have the funds to take advantage of that ... I'm not sure thegovernment assistance will benefit them," Ms Toth said.
Federal Chamber of Automotive Industries chief executive Andrew McKellar says the global financial crisis was a concern for the car industry.
"Many people in the industry around the world are obviously concerned by what's unfolding at the moment," Mr McKellar said.
"These pressures are exacerbated by the current financial crisis.
"There are very few global car makers that are immune from that."
However, Mr McKellar says local car makers would invest funds into developing greener technology, with government help, as market conditions normalisein the medium term.
Industry analyst John Mellor, who also publishes goauto.com.au, says with Michigan in a parlous financial position, emerging Asian car companies wouldfind Ford Australia or Holden a good buy.
Mr Mellor said Indian car maker Tata, which recently bought Land Rover and Jaguar from Ford, should consider buying all or part of Ford Australia.
He suggested China's Shanghai Automotive Industry Corporation, which has a majority stake in Rover, think about buying Holden from General Motors.
"Chinese car markers need to learn very quickly how to develop cars to Western standards," Mr Mellor said, adding the emerging Asian car companies would be in a good position to take advantage of Australia's green vehicle fund.
So far, only Toyota, the world's No.1 car maker and Australian market leader, has taken advantage of the federal government's green car program.
Earlier this year, the Japanese giant accepted a35 million federal government grant to build a hybrid version of its four-cylinder Camry sedan in Melbourne from 2010.
The Victoria government gave another35 million.
Amid the financial turmoil, the big three US car makers General Motors, Ford and Chrysler have asked the US government for a loan guarantee ofUS25 billion ($A37.51 billion).
Ms Toth said US President-elect Barack Obama's Democratic party was likely to be in favour of a car industry bailout package.
"The Democrats are very committed to supporting manufacturing, particularlythe auto industry," she said.
However, Democrat Senator Chris Dodd, who is also chairman of the Senate Banking Committee, said a rescue plan for the US car industry would be unlikely to pass Congress until after Obama succeeded George W. Bush as presidenton January 20.
Australia's auto industry has been allocated6.2 billion worth of assistance over the next 13 years.
AAP sajlk =0A