Last Update: Friday, August 12, 2005. 2:49pm (AEST) Reach...

Last Update: Friday, August 12, 2005. 2:49pm (AEST)

Reach extends: Australian-made car parts are to be marketed overseas. (Reuters)

Govt to market car parts overseas
The Federal Government will try to open up overseas markets for Australian car parts.

The decision comes as car industry workers in Victoria become increasingly concerned about Holden importing cheaper parts from overseas at the expense of jobs in Australia.

Federal Industry Minister Ian Macfarlane says a strategic group will market Australian parts overseas.

"In terms of auto manufacturers, we take a message to Japan and to Detriot that Australia is a country that has an innovative and special expertise in the auto industry," he said.

"We want to be part of not only building cars here in Australia, but part of the global supply chain of supplying relating to the manufacture of cars all over the world."

In addition to the overseas marketing push, car manufacturers that use cheaper foreign parts instead of locally-produced components will be asked by the Federal Government to explain why.

Mr Macfarlane says the decision not to use local parts is an issue, given the $2 billion of government subsidies given to the car industry.

"I think the issue in terms of obligation does need to be taken to the head offices of the auto manufacturers in their home countries and that is exactly what I intend to do," he said.

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