Automotive - Opportunities - Invest Victoria, Melbourne, Australia
Automotive
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Why is Victoria Australia's Automotive Hub?
Melbourne’s history of more than 100 years in vehicle manufacturing has resulted in generations of expertise and broad industry capability.
It’s one of the few locations in the world that can take a vehicle through the entire development spectrum, from concept to complete manufacture. This has attracted global companies such as General Motors, Toyota, Ford, Kenworth and Ivecoto set up in the state.
Victoria offers the highest quality in the Asia-Pacific region at competitive operating costs.
Domestically, the state accounts for 60% of Australian vehicle assembly, 55% of automotive manufacturing employment, 54% of Australia’s total value-added auto exports, and 60% of Australian automotive output (by industry turnover).
Strategic location
Strategically located in the Asia-Pacific region, Melbourne has seamless access to world markets via Australia’s largest container port and Melbourne’s 24-hour international airport.
Victorian car and component makers exported 1.8 billion worth in 2009-10.
Key markets for Victorian passenger vehicles are the Middle East and New Zealand, while Victorian engines are exported to markets across Asia, Europe and the Americas.
Victoria bridges US and European business hours for around-the-clock operations.
From concept to delivery
Victoria’s cluster of manufacturing, tooling and design facilities makes it an exceptional location for investment. Independent research by IBM Plant Location International demonstrates that operating costs for design and OEM assembly are well below those in locations of comparable quality, such as Stuttgart, Sydney and Tokyo.
Victoria offers
support for niche opportunities arising from developments in alternative fuels, drive-by-wire and computer systems integration
fast tracking for technology development – fast and cost-efficient development of new variants from concept to production
applications engineering (conversion from concept to application within a model)
a test market for low-volume niche products and customisation
Asian-based engineering and design for around-the-clock operations
Talent and innovation
Quality, innovation and renewal in the automotive industry are guaranteed in Victoria by a large pool of highly skilled workers, and world-class clusters of suppliers.
Victoria’s universities produce the highest numbers of IT, computing and engineering graduates in the country.
This talent is supported by excellent public and private research and development, with Victoria boasting 75% of Australian automotive R&D.
Private automotive R&D
Melbourne is home to design and R&D centres for the world’s largest car makers.
Key capabilities include:
light metals technology
safety and comfort
instrumentation
networking and data communications
‘green’ manufacturing
heating, ventilation and air conditioning
fuel cells and hybrid power trains
intelligent vehicle systems
composite materials
computer-aided engineering software
joining, forming and machining technology
GM Holden's design centre in Port Melbourne plays a key role in global design for General Motors; it is the third largest design centre after the US and German centres.
Ford’s regional design headquarters in Melbourne plays a lead role in the design and engineering of a range of vehicles including the AWD Ford Territory, winner of an Australian Design Award.
Toyota's Technical Centre in Melbourne forms part of a global network of five integrated design centres. It contributes to the development of innovative vehicles for regional and global markets.
The new Melbourne production line of German car component maker Hella produces lights for Toyota’s Camry, hybrid Camry and Aurion models.
R&D infrastructure
The Victorian and Federal Governments are committed to working with the Victorian automotive industry to ensure its future is clean, green and internationally competitive.
As well as specific programs and incentives, this commitment is underscored by continual investment in research and development infrastructure, including:
A Port Melbourne-based collaboration of six leading vehicle and component manufacturers, two state governments, and 10 research institutions.
It focuses on four areas: materials and sustainable manufacturing; powertrains fuels and emissions; safety and intelligent vehicles systems; and virtual design and manufacturing.
Production of the Hybrid Camry began at Toyota’s Altona plant in February 2010. Only four sites in Toyota’s global network are trusted to build the hybrid cars, which require the highest standards of assembly.
In 2009, GM Holden announced production of two advanced, Australian-built Global V6 engines. They’re the first in Australia to use advanced Spark Ignition Direct Injection, improving fuel efficiency, reducing carbon emissions and leading to better performance.
In 2009, Ford opened the Advanced Centre for Automotive Research and Testing, in conjunction with the University of Melbourne, at the company’s Lara proving ground.
In 2009, Ford’s announced development of a four-cylinder turbo Falcon and a Euro 4 compliant diesel and petrol six-cylinder engines.
Design and engineering work on GM Holden’s new four-cylinder front-wheel drive vehicle is taking place in Port Melbourne, with production to start in 2011.
