The Gillard Government’s Green Car Innovation Fund and the Victorian Government will assist in creating manufacturing jobs within the state.

Australian workers will manufacture power steering and drive line components that make vehicles lighter and more fuel efficient under the federal government’s $5.4 billion New Car Plan.

Nexteer Australia, an international company specialising in advanced steering and driveline systems, will receive $63 million in Commonwealth assistance over three years.

The Victorian Government will provide additional funding to help develop and manufacture its light weight technology, creating more than 250 jobs.

Federal Minister for Innovation and Industry Senator Kim Karr said these high technology components will drive a need for skilled labour and create new manufacturing jobs in Victoria.

Ms Carr said the project represents a “major investment” by a large global company in Australia’s automotive supply chain and brings in manufacturing capability for the long term.

Minister for Manufacturing, Exports and Trade Richard Dalla-Riva said this automotive investment is one of Victoria’s largest in two decades, which will strengthen the sector’s manufacturing and export capabilities.

Nexteer Australia managing director Greg Malone said the grant will be used to support the company’s innovation and growth plans.

“Our focus is to be globally competitive by utilising the local supply base and skills of the Australian workforce as key partners in the program,” Mr Malone said.

According to Mr Malone, the program will be able to leverage manufacturing volumes to offer Australian Original Equipment Manufacturers world competitive green products and technology through economies of scale.