Time for SA to drive automotive ambitions

By Nigel McBride, Business SA chief executive

Adelaide is on the cusp of being part of an automotive revolution. But like a rainbow pointing us to a pot of gold, we’ve got to be very careful that it doesn’t disappear just when it seems tantalisingly close.

No, I haven’t bumped my head and woken up in 1920. And I haven’t forgotten the collapse of auto manufacturing in southern Australia which has seen Holden, Mitsubishi, Ford and Toyota pull up stumps.

There is still so much potential in South Australia to become a niche automotive specialist centre, and this needs to be fully embraced.

Adelaide-based investment group Fusion Capital is doing all it can to focus on advanced manufacturing in northern Adelaide, and is seeking to leverage off our capabilities and capacity.

From little things big things grow – including its associated company Precision Buses - which is tendering to supply 400 buses over 10 years for Adelaide Metro.

The critical mass of the bus contract would underpin Fusion’s plans for the Brabham supercars and allow other niche projects, including electric vehicles, to become a reality here.

Brabham Automotive is planning to build 70 of these ultimate supercars. Together with new technology buses, the associated jobs, skills, niche manufacturing critical mass and global recognition, they would be a huge boost to the next chapter in our 21st century advanced manufacturing.

This has already been recognised by Bill Muirhead, our UK Agent General, who has thrown his support and the strength of his substantial UK network behind Brabham in Adelaide.

He has made no secret of his desire for a carbon-free city centre. Given these projects would act as such an important catalyst for related opportunities, it warrants the close attention of the South Australian Government to ensure barriers to success are removed or minimised.

US-based Carnegie Mellon University, an international leader in autonomous vehicle technologies, put a five-year, $25 million plan to the former State Government two years ago. The plan forecast up to 3000 jobs would be created in IT and manufacturing and research collaborations between Pittsburgh in the US and in Adelaide. The plan found no traction, but is a worthy proposal to re-visit.

British billionaire Sanjeev Gupta is also considering building an electric car manufacturing hub in South Australia but he is facing hurdles in his negotiations to secure parts of Holden’s infrastructure in Adelaide’s north.

We have billionaires, investors, international universities and experts in their fields wanting to take part in growing this state’s new automotive future.

We know the age of traditional heavy manufacturing is all but past, but there are massive opportunities for our state to carve an international niche by developing technologies which will shape our future transport needs and beyond.

To achieve this outcome, a lot of things must go right and policy settings must put South Australian jobs first.

This article was originally published in the South Australian Business Journal in The Advertiser on Tuesday 29 May 2018.

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