AAAA calls on government to release manufacturing funds for automotive industry

The Australian Automotive Aftermarket Association (AAAA) is calling on the government to expedite access to crucial manufacturing funding, which the association argues is vital for the growth and competitiveness of the automotive manufacturing sector.

The AAAA, the leading body representing the automotive aftermarket industry, expressed optimism following last year’s announcement of the $15 billion National Reconstruction Fund and the more recent $22.7 billion Future Made in Australia Fund. 

However, the association has voiced frustration over the lack of clear guidance and access to these funds, which has left many automotive manufacturers in a state of uncertainty, as revealed in a media release. 

“Our manufacturing industry needs clear action now to ensure we can continue to innovate and compete on the global stage,” said Stuart Charity, CEO of the AAAA. 

“It’s been over a year since the funds were announced and the industry is still waiting for details on how to access this critical support. The lack of progress is not only frustrating but is also putting our industry at a disadvantage.”

The AAAA warns that the government’s failure to follow through on these funding commitments could worsen existing challenges faced by the sector, including global supply chain disruptions, advancements in Advanced Driver Assistance Systems (ADAS) and electric vehicles (EVs), and increasingly stringent regulations.

“Our industry is navigating complex challenges, and the promised funding could provide crucial support in adapting to these changes,” Charity continued. 

“However, without clear guidance and timely allocation, these opportunities remain out of reach.”

The automotive manufacturing sector is particularly concerned about the complexity of the eligibility requirements for the funding, which they argue often exclude small and medium-sized businesses with innovative potential.

“The government aims for a guaranteed 10-times return on investment, but this expectation is unrealistic for many in our sector,” Charity added. “Instead of fostering innovation, these funds are being made inaccessible to the very businesses that could drive growth.”

Gino Ricciuti, chair of the Australian Automotive Products Manufacturers and Exporters Council (APMEC), has echoed the AAAA’s call for action.

“Our industry is ready to evolve into the EV space producing global quality products as we have always done, but we need a plan to ensure government and industry are on the same page,” Ricciuti said. 

“If we want manufacturing to continue to thrive, it is vital that a clear automotive manufacturing roadmap is developed in partnership with the federal government.”

The AAAA has formally requested action from the new Assistant Minister for a Future Made in Australia, Tim Ayres, and will continue to advocate on behalf of its manufacturing members to ensure that the promised funds are made accessible and effective.