Michigan’s Nexteer Automotive Wins Australian Government Grant

Michigan-based Nexteer Automotive wins a A$63 million ($65 million) grant over three years from the Australian government to produce power-steering and driveline components designed to make vehicles lighter and more fuel-efficient.

Federal funding for the U.S. company’s Nexteer Australia subsidiary comes from the Green Car Innovation Fund, and is the biggest grant awarded under the fund to an automotive supplier.

There also will be funding from the Victoria state government to help set up an operation to develop and manufacture the parts and create more than 250 jobs.

Nexteer's technology includes electric power-steering systems and lightweight steering-column and driveline components designed to significantly reduce greenhouse-gas emissions and fuel consumption.

Federal Innovation Minister Senator Kim Carr says the project represents a major investment by a large global company in Australia's automotive supply chain and brings new manufacturing capability Down Under for the long term.

“These high-technology components will drive a need for skilled labor and create new manufacturing jobs for Victoria,” Carr says in a statement.

Nexteer Australia Managing Director Greg Malone says the company aims to be globally competitive by using the local supply base and skills of the Australian workforce as key partners.

“We see the program being able to leverage manufacturing volumes to offer Australian original equipment manufacturers world-competitive green products and technology through economies of scale,” he says.