The federal government's $6.2 billion investment in the car industry has been applauded by car makers around the country and the unions representing more than 60,000 employees tied to the car industry.
The Australian Manufacturing Workers' Union (AMWU) said the plan will save tens of thousands of jobs and provide crucial investment for the industry amid global economic turmoil.
Federation of Automotive Products Manufacturers (FAPM) president Zoran Angelkovski said the package will help encourage investment in the struggling sector by boosting international competitiveness and a shift to environmentally friendly car production.
"The new policy sends a positive signal to Australian and international firms that Australia values its automotive manufacturing industry and wants to attract new investment, particularly in research and development and in sustainable products and manufacturing processes," Mr Angelkovski said in a statement.
Ford Australia president and chief executive Marin Burela agrees that the rescue plan is a "tremendous step forward".
"We at Ford are extremely encouraged, and certainly endorse the plan that was presented today," Mr Burela told reporters in Melbourne.
The package, announced by Prime Minister Kevin Rudd in Melbourne, sets aside $500 million - double the amount recommended by the Bracks review - for a green car innovation fund.
Mr Rudd today announced an extra $3.2 billion for the industry, taking the total level of federal government assistance to $6.2 billion between 2008/09 and 2020/21. A total of $3 billion has already been committed.
It also confirms a reduction in the automotive tariff to five per cent will go ahead as planned in 2010.
