Sunday, June 22, 2008

Rudd's Flawed Hybrid Vehicle Policy

Spend $35 million to drive down jobs, put upward pressure on inflation and in turn interest rates. That’s essentially what the Rudd Government will achieve through its flawed hybrid car policy.

It goes something like this. At present Toyota’s Altona production facility is running at full capacity thanks in some measure, to Middle Eastern orders. Accordingly, the propsed 10,000 hybrid Camry’s will be produced within the existing mix of units assembled on the line coming at the expense of locally produced petrol Camry’s. As a consequence, there will be less demand for the Australian built engine and this in turn will impact jobs in Toyota’s engine assembly plant - bear in mind the hybrid engine is an import and owing to efficient industry practice expect no compensating increase in labour within the plant as it simply, not required.

Given also that the 10 percent tariff will apply to the imported engines the price for our locally built cars will be higher putting upward pressure on inflation and therefore interest rates. It’s not rocket science!

Contrary to the Governments view the policy does nothing for local green car technology and only serves to enhance the profits of the world’s number two car manufacturer at the expense of local jobs and skills development; an unintended consequence I am sure.

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1 comment:

Steve Harkonnen said...

interesting blog; I am adding it to favorites, please stop by mine one of these days.

The primary reason I backed away from purchasing a hybrid vehicle is because I feel the technology isn't quite perfect yet. Further, getting them fixed after warranties expire is no laughing matter for the pocketbook.