Campaign Media Release

Minister for Innovation, Industry, Science and Research Senator Kim Carr
CAR SALES SHOW NO SUBSTANCE TO FBT SCARE CAMPAIGN The August vehicle sales figures released by the FCAI today show claims that Federal Labors changes to FBT will destroy the car industry are completely untrue. Despite the prediction that locally made sales would fall by 20 per cent, locally made sales in August are up slightly compared to July. In fact, sales for August are the second highest for any month so far this year. The data released today shows sales have decreased by just 0.2 per cent on the same period last year and that year to date sales remain up by 4 per cent. There has been no collapse in demand. People are continuing to buy cars, because people need cars. But sales remain too low and that is why Federal Labor has a plan to boost support for the auto industry, unlike the Coalition who only has plans to cut. Federal Labor has a New Car plan for the 2020s. Federal Labor has a plan to lift Government fleet sales. Federal Labor has a short term stimulus measure to drive up demand for locally made cars. We need to focus on fairness and on facts. Those seeking to drum up a crisis have been proved wrong. They said we would see a 20 per cent drop in locally made car sales but this has not materialised. They had one simple objective: to take attention away from their planned cuts to the automotive industry and to take attention away from their cuts to clean technology. The fact is that Ms Mirabellas first act as Industry Minister would be to cut $500 million from our co-investment in the automotive industry.

She would take away the investment that keeps these jobs in Australia. Her only industry policy to date is to keep a tax perk, but take away jobs thats the deal the Liberals are offering. The second thing she would do is take $1 billion in support away from innovation and jobs. Ms Mirabella will not support Labors $200 million short term stimulus measure or our $500 million increase in support under the New Car Plan for the 2020s. That means the auto industry stands to lose $1.2 billion in support under a Coalition Government. The choice this Saturday is simple do we want an automotive manufacturing industry in Australia or not? ADELAIDE 4 SEPTEMBER 2013
Communications Unit: T 03 8625 5111 www.alp.org.au Authorised by G. Wright, Australian Labor Party, 5/9 Sydney Avenue, Barton, ACT, 2600

F E DE RA L CHA MBE R OF A UT OMOT IVE INDUS T RIE S

ME D I A RE L E A S E
4 September 2013

FBT CHANGE SLOWS CAR SALES

The automotive industry took a hit in August with sales down 0.2 per cent compared to August last year. Only 93,336 vehicles were sold. Prior to the Government's 16 July FBT change, vehicle sales had increased, on average, by around 4.8 per cent each month, compared to the same periods from 2012. The Federal Chamber of Automotive Industries (FCAI) expected last months sales to be around 98,000 based on year-to-date trends, without the negative impact of the FBT change. Releasing the August 2013 VFACTS data, FCAI Chief Executive Tony Weber said the disappointing sales figures show the impact the FBT change is having on the range of car brands in the Australian market. "Unfortunately, but not unexpectedly, the FBT change is impacting on sales data. This indicates consumers are having to stall or forgo their purchases of new vehicles," Mr Weber said. Without the return of the statutory formula method for salary-sacrificed and employer-provided cars, the FCAI and its members expect sales will continue to decrease through the rest of the year and into 2014, as the full impact on fleet sales works its way through the system. Business purchases are down 10 per cent compared to August 2012, with purchase of light commercials, in particular, down 23.4 per cent. Government purchase of light commercials also fell 7.8 per cent, contributing to a total light commercial market drop of 15.3 per cent compared to the same period last year. Government purchases of passenger vehicles and SUVs were low again, dropping 15.7 and 25.7 per cent respectively compared to August last year. Just 1,664 passenger vehicles and 676 SUVs were brought. The Mazda3 was the top selling vehicle last month with 4,188 sold. The Toyota Corolla, came in second (3,681 units sold), the Toyota Hilux (2,884 units sold) followed in third, the Holden Commodore (2,809 units sold) came in fourth and the Hyundai I30 took fifth (2,552 units sold). July's top five selling brands held their position last month. Toyota held the top sales position in the August market with 17,758 vehicle sales, ahead of Holden (10,606), Mazda (9,825), Hyundai (7,808) and Ford (6,222). For further information contact: Sheena Ireland, Communications Manager 02 6229 8221 / 0458 038 555 Sheena.ireland@fcai.com.au