The Australian Federal Government has announced a $6.2 billion rescue package to bailout the struggling Australian auto industry. The package will be distributed over a period of 13 years, until 2021, and is designed to allow our automotive industry to breathe during the current financial crisis. 

The Australian International Motor Show was chosen as the venue for Cadillac to make its official return, where the luxury arm of General Motors showed off its CTS sedan and the CTS Coupe Concept. The CTS sedan will be the first Cadillac to be sold in Australia since the company left in the 1930s.

Holden's seven millionth vehicle rolled off the production line today, creating a record manufacturing achievement in Australia's automotive history. The milestone vehicle was built at Holden’s Elizabeth plant in South Australia – one of the most flexible plants in General Motors' worldwide operations with 43 models based on six variants of the Commodore manufactured at the site.

The review of the automotive industry led by Steve Bracks today released its final recommendations, and chief among them is that the government should double its Green Car Innovation Fund (GCIF). The review also recommends that all vehicles, including those from the commercial transport sector, should be included in the carbon emissions trading scheme (ETS) to help further encourage the local industry to shift toward production of more environmentally conscious vehicles. Finally, contrary to recent calls for relief by local car manufacturers, the Bracks review has advocated adherence to the policy of reducing tariff protection.

Small-scale Malaysian car manufacturer Proton is developing a new range of in-house engines, including a new hybrid powerplant, as part of its strategy to increase its export program. The new hybrid system is currently in testing and is expected to begin retail sales shortly after 2010.

America’s ‘Big Three’ carmakers, located in the ancestral home of the mass-produced automobile - Detroit, Michigan - have had a hard time over the past several years, and especially the last several months. All have reported losses in the billions at some point, with sales dropping precipitously - by as much as 25% in a single month - thanks to outdated lineups and a lack of fuel-conscious small cars. Chrysler’s report of a $515 million lost for the first quarter doesn’t provide much hope that things are soon to change, but it’s not as bad as rival Ford’s $8.7 billion second quarter loss.

Volkswagen confirmed today that it will build a new U.S. plant in the southern state of Tennessee. The new site, situated in the city of Chattanooga, beat out rival bids from cities in Alabama and Michigan because of its low cost and central location. Production at the site is scheduled to begin in early 2011.