Detroit Execs Say Australia to Play Role in GM, Ford Global Plans

Australian Industry Minister Kim Carr says he’s more confident in the future of his country’s auto industry after meetings with top executives from Ford Motor Co. and General Motors Co. in Detroit last week.

Carr is quoted by Melbourne’s The Age newspaper as saying there was “strong affirmation” from Ford and GM that both auto makers' plants and design facilities in Australia will play a part in their global operations.

“I had the overwhelming sense that the Australian industry is held in high regard,” he says.

Carr says the U.S. executives are impressed by the capabilities of the Australian research-and-development operations, combined with the government's A$6.2 billion ($5.4 billion) New Car Plan for a Greener Future and the close ties between the industry and the government’s Commonwealth Scientific and Industrial Research Organization (CSIRO).

GM has agreed to inject A$1 million ($903,114) of additional R&D into Australia’s Cooperative Research Centre for Advanced Automotive Technology, of which GM Holden Ltd. is a member, GM Holden spokesman Jason Laird tells Ward’s.

The money is for seven projects, two existing and five new, he says, that involve improving on virtual manufacturing techniques, advanced coding of materials and laser diagnostics. Much of this work will be carried out by CSIRO.

Carr says executives at GM and Ford stressed to him there will be further scope for the Australian operations to take part in the development of new, greener cars, but that the key will be finding specialist capabilities.

Australia Industry Ministry Kim Carr in Detroit recently.

These likely include developing a new generation of electric motors, battery technology and advanced electronic systems, which can be used to make cars more fuel efficient and reliable.

Carr says he was reassured the U.S. car makers have a profitable future.

“'There is no question that the industry will survive and return to prosperity,” he says. “The question is what part we will play in it.”