Nissan warns that carbon tax plan in Australia threatens business

The car maker Nissan has taken a swipe at the federal government's carbon tax plan saying it threatens the viability of the last of its Australian manufacturing operations.

The Japanese company announced USD 4 million expansion of its Dandenong casting plant which has diversified to make add on such as towbars and nudge bars that it used to import from Asia but said the business could close if the tax was introduced.

Mr Dan Thompson CEO of Nissan Australia said that ''A so called carbon tax, looming as a hurdle to Australian manufacturing, won't help. Our business plan figures are finely balanced and based on a predictable and measured business environment.”

Mr Thompson said that what might change, and what we do not welcome, is the prospect of rapidly inflating resources costs which will drive up costs and have the effect of limiting or stalling growth at this facility.

He said that the Victorian casting plant, established 30 years ago uses about 9000 tonnes of aluminum a year that is forged into gearbox and suspension parts for export. It will soon start making lightweight parts for the Japan built Nissan Leaf electric car which will go on sale in Australia in April.

Aside from the cost of aluminum raw material which represents 40% of the company's cost base, electricity consumes another 20% of the annual budget.

Mr Thompson said that the extra burden of a carbon tax stacked on top of 60 per cent of its costs could crush the company. After proving its competitive mettle on the global manufacturing stage after bringing business back home from Asian factories, for a business on the move, we want to see those breakthroughs produce a sustainable, long term benefit for our customers. 'We cross our fingers that any additional and unnecessary tax burden won't lead us to change our plans.