Posted July 03, 2018 15:16:59 The WA Government has been caught off guard by the response from the industry it’s trying to manage, and has resorted to using scare tactics to try and save its $20 million investment in a new WA-owned factory to produce parts for the world’s largest car and truck makers.
The Government has spent almost $200 million of taxpayers’ money to build the factory, which will produce parts to meet the needs of Ford, Toyota, Volkswagen and General Motors, as well as the likes of Volkswagen, Ford and Nissan.
However, despite the government’s promises to diversify the economy, it appears the company that was promised the factory has been given a taste of the state’s economic future.
Industry groups fear the new factory will only be used to produce low-value parts, such as brake pads, seats, doors and windows, which are already produced in China.
While there is a strong case for importing these parts, the WA government is being too conservative with its plan to invest in a manufacturing plant in WA, says the Australian Automotive Manufacturers Association.
The WA government’s strategy is to spend a lot of money to diversate the economy away from its manufacturing base and instead focus on the local car and trucks sector, according to the AAMA.
It’s a strategy that will benefit companies from China, the US, Australia and Europe, said AAMA WA president David Geddes.
“This is a huge mistake for the WA economy,” he said.
“I am afraid that we have missed an opportunity to diversified our economy away, not only from manufacturing but from the car and motorcycle industry, which has a huge amount of jobs.”
It’s going to be hard for the state to make any sense of this, but at the end of the day we are going to lose money, if not billions of dollars, on the investment.
He said WA has already invested $50 billion in its manufacturing sector over the past five years. “
The state has done a very good job of diversifying its economy, but the reality is that we are not diversifying our economy by investing in manufacturing at all,” Mr Gedders said.
He said WA has already invested $50 billion in its manufacturing sector over the past five years.
“We’re not going to go backwards on that,” he told 7.30.
The AAMC is concerned the Government is relying on the Chinese factories as a “backstop” to diversifying the economy.
“There is a need for WA to invest significantly in our manufacturing sector,” Mr Wessels said.
The government is not making the same investment, and is not investing in its own manufacturing, he said, saying the investment should be directed at “other sectors of the economy”.
“We need to diversifies the economy in the right way.
We have an enormous amount of potential and we need to invest to build that potential,” Mr Smith said.
WA Government spends $200m of taxpayers money to create new car and bus parts plant in Perth article Posted June 29, 2018 14:59:21 The Government is investing $200,000 to build a new car manufacturing plant, with $250,000 earmarked to build cars for the next generation of car makers, in Perth.
The new factory is expected to produce “the lowest-cost, best-quality automotive parts that can be used in the global marketplace”.
But the WA Business Council has said the Government has not done enough to attract investment to the state, or invest in WA-based automotive manufacturing.
The Council said it will be asking for an investigation into the Government’s investment plans.
“Wales is not only a very attractive place to invest, but also a very strong industry to do so in,” the Council said in a statement.
The Government said the new plant will be the “most modern and advanced vehicle assembly facility in the world”. “
But, with the Government spending so much on a car plant in the South East, and with the State Government spending on its own car manufacturing, it is becoming apparent that this investment is not being matched by other industries in the State.”
The Government said the new plant will be the “most modern and advanced vehicle assembly facility in the world”.
It is being built on a $2.5 billion $3.5bn project that was first announced in 2013, when then-Premier Colin Barnett said WA was “an economic engine of the country”.
However, the Government said it was only building the plant in Fremantle, with other plants in the Perth-Cairns and Mackay-Goulburn areas already under construction.
The Perth-based Automotive Manufacturing Industry Council said the state government has “stolen the show” by investing so much in the car industry.
“They’re building the whole