The Rudd Labor Government will work in partnership with local car and component manufacturers to help develop and build more fuel-efficient vehicles.
The road transport sector is a significant contributor to the nation's greenhouse gas emissions and the Government is determined to improve the fuel-efficiency and greenhouse performance of Australian-made vehicles.
Consumers are lining up to drive greener, cleaner cars, and this initiative will help the local industry deliver new-generation technology, components and vehicles.
A key element of the Government's strategy is the $500 million Green Car Innovation Fund, which will operate over five years from 2011.
Under this initiative, industry will be asked to match the Government's contribution on at least a three-to-one dollar basis, generating at least $2 billion in investment.
The Fund will encourage the Australian automotive industry to develop and manufacture low-emission vehicles so that we can meet the challenge of climate change while maintaining critical automotive industry jobs.
This initiative will ensure that Australia plays a leading role in the global development and application of green car technology.
The impacts of climate change and of changing consumer vehicle preferences are a key focus of the current comprehensive review of Australia's automotive industry.
The review will inform the implementation of the Green Car Innovation Fund, with its final report due to be completed by 31 July 2008.
Media contact: Catriona Jackson, Minister's Office, 0417 142 238