Bowen confirms ALP support for car makers Treasurer Chris Bowen says Labor will put up a new support package for car makers because the industry is important for Australian manufacturing. Mr Bowen has confirmed Labor will announce its plans on Monday. "It goes to co-investments with state governments to ensure that the industry survives, diversifying manufacturing production," Mr Bowen told ABC radio. The measures will also make sure Australian car manufacturers are able to compete in the world market and that local demand is strong, he said. The package is expected to be worth $200 million over the next two years, although Mr Bowen did not confirm the figure. "We think the car industry is important because of its impacts on research and development, it impacts through the supply chain," Mr Bowen said. It's an important part of the Australian manufacturing story. The treasurer said discussions with car manufacturers started long before the government announced changes to fringe benefits tax concessions for salary sacrificed cars, which was condemned by many in the industry. The plan is expected to include making the commonwealth car fleet be 100 per cent Australian, and forcing government agencies to buy Australian cars - resulting in extra 18,000 Australian cars sold a year. Prime Minister Kevin Rudd said supporting the car industry was important for the economy, as it provided an estimated 250,000 jobs either directly or indirectly. He said the industry had been under pressure long before the government's controversial changes to car leasing under the fringe benefits tax were announced recently. "I have said before that I do not believe manufacturing is an industry just for the past; it's an industry for the future," he told ABC Radio on Monday. He said the government's position was in contrast to the opposition's which would "lop off" $500 million in industry support.