The Australian Automotive Aftermarket Association (AAAA) warned on Tuesday of the loss of 30,000 jobs in the car parts industry and an $800 million export market unless the government extends it assistance.
AAAA Executive Director Stuart Charity pointed out that while federal funding was extended to three automobile manufacturers and their suppliers, the car component subsector has not been given any assistance.
Due to their situation, Mr Charity said that two component producers shuttered in the last six months and one more plans to go offshore. The subsector has an $11 billion annual turnover.
Mr Charity said that AAAA is not seeking special subsidies or co-investment funding, but wants equal access to federal government automotive industry programmes that support innovation and export. Unfortunately, the government only provides financial support for component makers which deal with three Australian car markers while hundreds of other parts manufacturer are ignored, he lamented.
Although Industry Minister Greg Combet announced two weeks ago a $35-million package as assistance for parts makers in Australia, the minister told Mr Charity that as part of long-standing government policy, it would only support those that supply to local carmakers.
Due to the bleak business atmosphere for components makers, he said most manufacturers went overseas in the past 15 years causing loss of volume replacement parts such as spark plugs, oil filters and fan belts.
Job losses continue to hound other sectors such as the banking and retail industries in Australia.
On Monday, reports said Westfield Group may cut its global workforce by up to 400 jobs from 4,000 across all business areas. However, Westfield declined to confirm or deny the report but issued a statement which said, "Decisions about staff numbers and structures are consistent with this approach and reflect the group's ongoing focus on cost control."
Westfield logged a net profit of $800 million for the first half of 2012, up by 31 per cent from the $608.8 million profit it made for the same period in 2011. The firm said it would increase investments in its better-performing shopping centres in Australia to further boost earnings.
Westfield froze the pay of its senior executive the past three years as part of its cost control.
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