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Automotive Industry Changes and the Impact on Local Supply Chain Companies

Automotive Industry Changes and the Impact on Local Supply Chain Companies

15 February 2017

Supply chain companies in Greater Dandenong and Melbourne’s south east are being encouraged to diversify following significant changes to the car industry.

The recent announcement that Toyota Australia would close its Victorian manufacturing plant in October looms as a significant challenge to the local manufacturing sector.

Greater Dandenong Mayor Councillor Jim Memeti said Council was working closely with the State Government to help businesses through this difficult period.

 “Our region has the highest concentration of automotive supply chain companies in the state and we are very concerned what the Toyota closure will mean for them,” Cr Memeti said.

“We will continue to work with automotive supply chain workers, businesses and communities to ensure they have access to support and assistance during this time of uncertainty. We will also continue to advocate for additional funding support from all tiers of Government.”

Cr Memeti said the City of Greater Dandenong has introduced a new program to assist vulnerable manufacturers and supply chain businesses during this volatile time.

He said the two-year project was designed to identify businesses at risk as a result of closures in the car industry.
“Council plans to engage with between 10 to 15 companies who may be adversely impacted by changes to the automotive sector,” Cr Memeti said.

“We will look at everything from strategic planning, cultural change and financial analysis and will work with these companies on a one on one basis, as well as in a group environment.

“The key focus will be to implement important and necessary change to enable businesses to remain competitive and sustainable.”

State Member for Dandenong Gabrielle Williams MP said as Chair of the South East Local Auto Transition Taskforce she was working closely with the City of Greater Dandenong to achieve positive outcomes for supply chain businesses.

“The taskforce helps oversee the implementation of Victoria’s Automotive Transition Plan which aims to assist workers and businesses during this uncertain time for the automotive industry and its worker,” she said.

“The Andrews Government has also established a dedicated automotive focused skills and job centre in the heart of Dandenong to provide workers with access to training and job support services.”

The Labor Government’s $46.5 million support package includes:

  • $8.4 million to strengthen skills, training and job search support in Melbourne’s south-east
  • $5 million Automotive Supply Chain Transition Program to help businesses identify and capture new opportunities in other markets
  • $33 million Local Industry Fund for Transition to support communities hit hard by the departure of Ford, Holden and Toyota (including $10 million for Melbourne's south-east)
  • Up to $7,000 incentive payments for businesses employing retrenched auto workers.

Workers in the automotive sector can contact 134 189 to find out more about the Government support and assistance available.

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