The federal government cannot defend injecting money into the local car industry when consumers aren’t buying Australian-made cars, opposition treasury spokesman Joe Hockey says.
Mr Hockey said the government had expected 300 new jobs would be created through a $34 million subsidy for Ford Australia.
However, Ford this week announced it would axe 440 jobs at its Broadmeadows and Geelong plants by November.
The job cuts are due to a slump in large-car sales.
“The issue is Australians are voting with their feet in not buying Australian-made vehicles,” Mr Hockey told Network Seven.
“Writing out a cheque with no conditions to Ford or General Motors is wrong.”
Federal environment minister Tony Burke said the government’s investment in the car industry was a smart move.
“That investment is about making sure that you’ve got a car industry to deal with the new demands of consumers where they’re wanting more efficient vehicles.”
The money was part of a $103 million package supplied by Ford’s US parent company and the federal and Victorian governments.
The federal government has committed $5.4 billion until 2020 to the car industry.