New company goes on the attack on Australian car industry

A new company has announced plans to cut hundreds of jobs from its Adelaide-based manufacturing operation, including its CEO.

The company, Gojo Industries, said on its website that it was “reviewing” its future operations.

It said it would not be renewing its lease at the Adelaide plant, which is currently running at a loss.

Gojo Industries has also been targeted by the Government’s car industry, which says it is the only major Australian company that does not require carmakers to install emission-free fuel cells in their vehicles.

“Gojo was one of the very first carmakers in Australia to install a zero-emissions fuel cell in its vehicle, in 1998,” the company said in a statement.

“[The] company’s fuel cell system will remain in the fleet for years to come.”

Gozo Industries has been under fire by the Australian Automobile Manufacturers Association (AAMA) for not complying with emissions standards.

A spokesperson for the AAMA said it was concerned that the company was continuing to “operate with no intention of meeting the Government emissions requirements”.

“We have also raised concerns with the Australian Renewable Energy Agency (ARENA), which are currently being addressed,” the spokesperson said.

“We are currently reviewing all the information provided by Gojo and will provide further updates as appropriate.”

The spokesperson said Gozo Industries had been operating at “financial loss” for “many years”.

“We do not know when Gozo will be able to repay all of its debt and our stock is currently trading at a price that does less than half its full price,” the spokesman said.

On Friday, the AAMAs chief executive, Paul Bickfield, said Gojo had not met its targets for reducing emissions, and urged the Government to “stop wasting taxpayers’ money”.

“Gozo’s emissions targets have not been met, but the company continues to operate at financial loss and its stock is now trading at less than a quarter of its full market value,” Mr Bickland said in the statement.

“The Government should stop wasting taxpayers money and stop subsidising this industry.

This industry has been the beneficiary of Government support for decades, and we cannot afford to continue subsidising it.”

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