The late Senator John Button's Motor Industry Development Plan has reached its zenith. When Mitsubishi ceased local production earlier this year, the number of local manufacturers dropped to three and the number of autonomous models was reduced to six: Falcon, Territory, Commodore, Statesman/Caprice, Camry and Aurion.

That is in line with the original goal of the Button Plan in 1984 and the fact that the Labor Senator's vision didn't reach its ultimate goal until 24 years after its inception -- and three years after his death -- is a sign that government policy is nothing if not a long-term proposition.

Depending on your point of view, it either reflects the farsightedness of Button or the lethargy of the local manufacturers.

With one government stratagem for the automotive industry successfully concluded (?), it must be about time for another. The government announced its new 'Green Car Plan' yesterday (more here) and the local manufacturers have responded positively to the news.

As per our previous report, Ford President Marin Burela described the new plan as the basis for "a paradigm shift in Australian automotive manufacturing". Burela focused on the resources available through the Green Car Innovation Fund that could benefit Ford.

Over at Fishermans Bend, Holden MD Mark Reuss used similar words in the same context.

"Through the Government's commitment to doing what is right, local manufacturers will embark on a decade of innovation," Reuss commented, but he also saw Burela's "paradigm shift" being consumer-led, as much as government-initiated.

"Shifting consumer sentiment and the need to address climate change is driving a fundamental shift in the types of vehicles and technologies Australian car buyers need and want," he said.

"That's why we are tapping into Australia's intellectual base to develop more alternative fuel technologies than any other time in Holden's history.

"Using less petrol and saving money shouldn't be something only for the wealthy.

"It is about better fuel efficiencies today and next generation fuel advances for tomorrow that are better for the environment and affordable for the typical family.

"The Green Car Innovation Fund provides opportunity to turn these plans into reality."

Reuss, head of a GM subsidiary that last year spent $420 million on R&D locally, paid tribute to both the government and former Victorian premier Steve Bracks, for the work done to establish the plan.

"The Rudd Government has made a concerted effort to understand the needs and challenges of our industry," he said.

"We extend our gratitude to the Prime Minister, Minister Kim Carr, the Honourable Steve Bracks and the Review Panel for their dedicated approach to this review.

"In taking responsibility for our industry, Minister Carr has consulted widely and taken a long term view of this situation rather than a short term political one.

"The response has the potential to be viewed over time in the same light as the original Button Plan which sent the industry on its current path of global competitiveness.

"By working together, we have ensured the Australian car industry remains a fundamental part of the national economy for many years to come."

At Toyota, President Max Yasuda also saw the hope for the industry implicit in the Green Car Innovation Fund -- THE central plank of the entire Green Car Plan.

"Australia continues to be one of the most competitive and open automotive markets in the world," Yasuda said.

"The Government's policy settings will assist the industry to evolve to meet this competition and build a solid base for future development.

"In particular, the introduction of the Green Car Innovation Fund will provide a strong incentive for local manufacturers and component suppliers to introduce new technology and processes that support the production of innovative vehicles, parts and production systems for local and export markets."

As his counterparts at Ford and Holden did, Yasuda recognised the work done by the government -- and Senator Carr in particular -- for the development of the new plan.

"Throughout this process, Minister Carr emphasised the Government's firm belief that a strong and competitive Australian automotive sector is an important part of this country's economic and social fabric," Yasuda said.

"This belief was translated by him into regular consultation with the industry across a broad range of complex issues.

"We look forward to continuing this level of involvement in the years ahead."

Curiously, at no point did the three heads of the three manufacturers refer to the government's intention to reduce the import tariff to five per cent.

And on the other side of the divide, Prime Minister Kevin Rudd, during his announcement yesterday, steadfastly steered clear of questions concerning the ongoing viability of manufacturers in Australia when their parent companies were suffering massive losses in the US.

Asked during a Q&A session whether the government was right to make the announcement now, rather than wait for the economic fallout in the US to reach its logical conclusion, the PM failed to address the question, merely saying that he and Senator Carr had spoken to the parent companies in Detroit and Nagoya.

However, when asked earlier about the future for individual manufacturers when the parent companies were facing "bankruptcy" (sic), the Prime Minister did say that the Green Car Plan wasn't a "blank cheque".

It does raise an interesting question; when US companies have had no qualms in the past -- and in the very recent past at that -- in withdrawing funding or even closing down profitable Australian operations (Chrysler Australia, for example), can all three local manufacturers necessarily continue in the present context, irrespective of government funding?

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