Abbott abandons plan to cut subsidies for struggling car makers

Canberra

PRIME Minister Tony Abbott abandoned a plan to cut A$900 million (S$953 million) in funding to car producers and component makers in Australia as he attempts to boost the government's flagging poll ratings.

The government will maintain full funding through the Automotive Transformation Scheme after the planned cuts were blocked in the Senate, Industry Minister Ian Macfarlane said on Tuesday.

Toyota Motor Corp, Ford Motor Co and General Motors Co's Holden unit are due to close production lines by the end of 2017, spelling the death of the nation's car manufacturing industry. That's placed about 50,000 jobs in Australia's car and parts industry in jeopardy and threatens to drive up unemployment already at a 12 1/2-year high. The decision not to proceed with the cuts…