Auto suppliers to benefit from $20m funding

THE federal government has handed out $8.9 million in first-round grants under its $20 million Automotive Supply Chain Development Program (ASCDP), more than half of which will be used to run a “coaching, mentoring and training program” for Australian-based automotive parts suppliers.

Designed to improve the “operational performance” of component suppliers, the $4.75 million program will be run through the Cooperative Research Centre for Automotive Technology (AutoCRC), which does research and training with local car-makers and suppliers through universities and other bodies including the CSIRO.

Set up in 2005 with $100 million (over seven years) in funding from the federal and Victorian and South Australian governments and the car industry – including $38 million in federal cash – AutoCRC will use the new grant to work with suppliers on specific projects, including those who have come to the fore in the AutoCRC-managed Automotive Supplier Excellence Australia (ASEA) program.

“The AutoCRC will work with any supplier wishing to participate, drawing up a tailored improvement plan for specific processes and projects,” said federal industry and innovation minister Kim Carr at the announcement last week.

“AutoCRC will use its highly regarded Automotive Supplier Excellence Australia program and draw on its extensive benchmarking knowledge to ensure that improvement plans are world-class and embody best practice.

“By increasing their capabilities and competitiveness, automotive component suppliers will put themselves in a better position to serve the local market and integrate into highly competitive global supply chains.”

Left: Federal innovation, industry, science and research minister Kim Carr.

Under the ASCDP, which is funded through the Rudd government’s $6.2 billion New Car Plan for a Greener Future, the federal government will provide $20 million to 2012/13 in assistance to the Australian car components sector.

Other first-round grants announced last week include $1 million each to Ford Australia and GM Holden, and $1.8 million to Toyota Australia, “to work collaboratively with their main suppliers”.

The Holden grant comes on the back of General Motors’ recent commitment to investing an additional $1 million into seven different AutoCRC projects – four of which involve the CSIRO – which, as GoAuto reported exclusively last October, Senator Carr secured in a trade mission to the US.

A further $76,000 has been granted to Victorian-based global tier one supplier (of exhaust manifolds and exterior accessories) Frontline Australasia, $100,000 to Port Melbourne-based Futuris Automotive, which produces a host of interior components such as seats, door trims, roof linings and carpets, and $75,000 to interior parts manufacturer Toyota Boshoku Australia, also based in Victoria.

Driveline and chassis supplier ZF Lemforder was also granted $76,484 to work with tier two and tier three suppliers.

As the first round of grants indicates, the ASCDP is delivered in three elements: funding for a service provider to co-ordinate assistance for individual firms across the automotive supply chain, including all tiers of component production and supporting businesses funding for local car-makers to enhance the capabilities of component suppliers and competitive grants of capped amounts for tier one suppliers to undertake programs that enhance the capabilities of tier two and tier three suppliers.

“The Automotive Supply Chain Development Program is about boosting the productivity and job capacity of individual firms and the industry as a whole,” Senator Carr said.

Applications for the next round of ASCDP funding will open in the second half of 2010.