LPG-Vehicle Plan Gets Closer Look as Way to Save Australian Auto Industry

A state government-backed committee is to investigate a plan to reinvent Australia’s vehicle-manufacturing industry by converting new cars to run on liquid petroleum gas at world-class facilities in Victoria.

The proposal by the Victoria Automotive Chamber of Commerce and Gas Energy Australia initially would create up to 500 jobs and make use of high-end skilled labor that will be idled as conventional car manufacturing in Australia contracts.

An LPG-vehicle manufacturing “center of excellence” would be developed under the plan, focusing on R&D and the harmonization of LPG-vehicle manufacturing standards.

VACC Executive Director David Purchase says the Victorian state government has committed to further investigate the potential of the project.

“Victorian Premier Denis Napthine supported the formation of an LPG-vehicle-production steering committee, after being presented with a VACC and GEA proposal at the recent Victorian government automotive industry roundtable meetings,” Purchase says in a statement.

“Given that Ford, (GM) Holden and Toyota will cease car manufacturing in Australia at the end of 2017, we must seize all employment, production and regeneration opportunities in the automotive industry.”

Gas Energy Australia CEO and Director Mike Carmody says the Victorian government’s support is a promising development.

“We hope support for this project in Victoria will lead to automotive industry partners coming onboard and also stimulate interest from the federal government,” Carmody says.

The GEA says Landi Renzo, the world leader in the LPG and CNG vehicle-conversion industry, is supporting the Australian proposal and will invite a government delegation to visit its facility in Italy.

Landi Renzo representatives announced their support during their annual visit to Australia to meet with officials from partner Apollo Gas.

Landi Renzo Business Development Regional Manager Fillipo Munna says the company has no doubt the concept would work in Australia.

“We have unparalleled experience this field and we are more than happy to share our expertise to get this proposal off the ground in Australia,” Munna is quoted as saying.

Landi Renzo has 13 subsidiaries in 60 countries, and is responsible for the conversion of between 1.2 million and 1.5 million vehicles a year.

“As experts in this industry, we can vouch for the validity of the plan put forward by Gas Energy Australia and the VACC,” Munna says. “We will be inviting representatives from the Victorian government, South Australian government and local councils to visit our conversion facilities in Europe and the headquarters with its new R&D center in Reggio Emilia, Italy.”

Munna says the company is prepared to provide training and support to the Australian LPG vehicle industry to help establish and operate conversion facilities and the center of excellence.