Denso closure a tragedy for workers

The announcement that DENSO Automotive Systems Australia in Croydon, Victoria, will cease manufacturing operations in Australia, in line with the announced closures of the motor vehicle producers, is a tragedy.

Our thoughts are with the 290 workers who are losing their jobs, and their families.

DENSO has been operating in Australia for more than 40 years and it is deeply regrettable to see a vital part of our automotive supply chain go.

Federal Labor is pleased DENSO plans to have an aftermarket sales presence in the region and we hope the company can maintain a presence in local R&D capability.

This was not inevitable – this is a direct consequence of the Abbott Government, which has abandoned the car industry and manufacturing jobs.

The actions of this Government will cost 50,000 direct Australian jobs in the car industry; 200,000 jobs which rely indirectly on this industry are also on the line.

University of Adelaide modelling shows the loss of automotive manufacturing will lead to a negative annual shock of $29 billion by 2017, or about 2 per cent of GDP.

The scale of this economic catastrophe highlights the gross inadequacy of the Abbott Government’s response.

With Budget cuts of $900 million to the Automotive Transformation Scheme, the Government’s paltry $100 million for the so-called Growth Fund in no way offsets the hundreds of millions slashed from auto assistance.

The fact of the matter is that it will cost the Government much more to see the industry fail than it would to support it.

Australia’s automotive industry is an industry to be proud of.

The workers at DENSO can be proud they were part of it.


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