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10.11.08

Kevin Rudd’s stimulus package could create innovative cars 

I congratulate Australian PM for announcing a A$6·2 billion stimulus package for the .
   I have been following the industry for many years and predicted some of the shifts in companies there before they came to light.
   And since I believe the next Ford Falcon will be a tweaked Mondeo and engineered in Köln while Ford Australia’s R&D will be used on adapting more humble models for the Asian market, a that encourages the Big Three—, and —to innovate and go green sends the right signals.
   Australia has long innovated in the automotive industry but a lot of its contributions have not seen the light of day. With Rudd’s political will—as one would expect from any top–down approach of this sort—I am hoping that this time things will be different.
   Doing the same old, same old will not help Australia and the 61,000 people by the motor industry—five per cent of Australian ’s workforce.
   What Rudd wants to see are innovative alternatives to the petrol-driven internal combustion engine.
   GM and Toyota will likely go to the route and Ford is looking at diesels and .
   New Zealand was once a world leader in natural gas-powered cars and creating a national infrastructure for CNG and LPG, knowledge which I have always maintained could have given us a and royalties and income.
   Like so many things, I think Australia will show us what could have been as it uses its new technologies for those very reasons.
   Countries like Red China are obsessed with regurgitating old , which means that whatever lead Australia is able to create from the extra funds can be significant as far as the Asia–Pacific region is concerned.
   With Ford Australia in particular developing for Asian markets, Australian-spearheaded technologies may find their way across the region.
   The concern I have is that these ideas will ultimately not be Australian-owned as the automakers are all foreign-owned. Australians need to remember that while Holden is referred to colloquially as ‘Australia’s own’, it hasn’t been that way since 1931. Detroit engineers even cooperated with Australian ones on the first supposedly all-Australian Holden, the 48-215.
   While it will keep some manufacturing in Australia and prove to the world that the departments there are worth more than their parents realize, it’s not the same as all the profits remaining in the country. However, if it encourages their parents to put more work Australia’s way than they currently do, then Rudd has achieved his aim and the $6 billion will flow back into the country’s coffers.
   Looking even more widely, Rudd’s injection could even change the face of motoring, making it more green globally, and that, too, must be worth it. I hope the Australians get even more creative than the plans they currently have on their drawing boards.
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Comments:
Wishful thinking, Jack, both regarding CNG/LP (the technology was many decades old and NZIG -a subsidiary of the UK's BOC - simply adapted it for modern cars) and the $6b creating a vibrant Ozzie automotive R&D group: ain't gonna happen - it's just job subsidies with window dressing.  
Agreed on the most part about subsidizing jobs, Jim, which is the result of the foreign ownership of these automakers. However, I remain hopeful that the $6 billion will come with conditions and it won’t just validate existing plans, only to have the automakers fall back on their old habits in a few years’ time.  
I think Kevin Rudd's has done a very good jobs with his Packages of sharing this one off-lump-sum for the low-income workers, The oppositions are indeed stubborn bastards, all they think about its how this affects the country as a whole, not realising the whole of Australia needs to boost its economy so people can sway away from the deep depression of the 60's, anyways my vote will be with Mr Kevin Rudd's %100.  
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