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AUTOMOTIVE AFTERMARKET MAGAZINE FEBRUARY 2014 7
In his presentation to the Productivity
Commission hearing in Adelaide, AAAA
Executive Director Stuart Charity said the
discussion is not just about making cars and
the parts used to build them.
“The policy makers must recognise that
there is a massive automotive industry outside
of the pyramid of car makers and their direct
suppliers,” Mr Charity said.
“The aftermarket manufacturing industry
makes up 36 percent of all local production,
employs 21,000 people directly and includes
automotive parts, accessories and performance
enhancement products fitted over the life of
the vehicle. These parts are fitted to both
Australian built and imported vehicles.
“Among our membership of 1700
companies, 260 of them manufacture
automotive aftermarket products in Australia in
a trade exposed, highly competitive
environment. They are exporting over $800
million worth of product a year. These are
predominantly Australian owned and operated
companies that are growing with virtually no
recognition or support from Government,” Mr
Aftermarket can assist OE sector
Industry experts acknowledge that
diversification is a critical imperative for the
OE sector. While the OE component sector has
experienced serious structural decline in recent
years, the aftermarket sector has grown.
The AAAA submission to the
Productivity Commission suggests that the
easiest and most logical transitional path
for the OE component sector is to diversify
into aftermarket production and expand
into export markets.
“Transitioning the OE component
supply chain into the aftermarket would
enhance Australian productivity and
capability by retaining and leveraging the
OE supply chain’s workforce skills, R&D
capability, intellectual property and quality
systems,” Mr Charity said.
“This strategy requires policy settings
that embrace both the OE component and the
aftermarket sectors simultaneously. It needs
policy that encourages both sectors to
collaborate in the search for new product
manufacturing and global marketing
“In our submission, we provided economic
modelling showing that Government
automotive industry policy in recent years has
actually had a negative impact on the
aftermarket sector. More effective policy
settings to promote the expansion of
aftermarket production and sales could have
created a sector worth some $6.56 billion,
rather than its current estimated value at
around $5.2 billion.
“Global competition, among other forces,
has created an aftermarket sector in Australia
that has the right pre-conditions to be
successful. However, current domestic policy
settings create an environment of disincentive.
“To ensure a sustainable Australian
automotive industry, we need policy that
facilitates structural adjustment for the entire
“The AAAA submission to the Productivity
Commission does not ask that our members
gain access to what the OE sector has enjoyed
through years of Government co-investment
“What we asked for is for a comprehensive
re-orientation of the Government incentive
structure to cover the entire automotive
manufacturing industry. This will encourage
diversification by the OE segment into the
aftermarket, and position that stronger
aftermarket sector for export growth,” he said.
For more information on the Australian
Automotive Aftermarket Association, visit
The Australian Automotive Aftermarket Association (AAAA) has submitted to the Federal Government’s Productivity Commission Review
into the auto industry that a constructive discussion about the future of the Australian automotive manufacturing industry cannot be
conducted by examining only the ‘original equipment’ (OE) sector – the car manufacturers and their supply chain.
AAAA ASKS GOVERNMENT
TO SET POLICY FOR WHOLE AUTO INDUSTRY
AAAA MEMBERS TARGETED BY SCAMS
If your business has received a fax claiming to be from
‘Yellow Page Australia’ and ‘Open Business Directory Ltd’
please be on alert and do not reply with any information
or contact details.
Nigel Bishop, Stakeholder Relations, Auto Parts Group
says, “We have seen these scams surface regularly, and in
particular this one claiming to be affiliated with the Sensis
brand. Now it is apparent that they are on the hunt again
for unsuspecting business owners so we urge everyone in
the auto industry to be vigilant and to report any scam
emails, faxes or phone calls to the relevant authorities.”
SCAMwatch urges small businesses to be alert and
follow these three key rules:
1. If you receive a Yellow Pages fax or email and want to
confirm if it is authentic, call Sensis on 132 378.
2. If you receive a threatening call, email or fax
demanding payment, ignore it and report it.
3. Spread the word – make sure your staff are alert to
how this scam works and how to protect your business.
Don’t let scammers slip under your business’s radar –
stop and think twice before you respond to any
unexpected offers, tax invoices or demands for payment.
For more information on how these scams work visit
AAAA member Auto Parts Group has again been targeted by a Yellow Pages directory scam now demanding payment and
threatening legal action for recovery of monies.
AAAM FEB TRADE 2014 - FINAL:AM MAGAZINE SHELL 5/2/14 12:25 PM Page 7
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