Australia car industry gets $2.2 billion aid package

CANBERRA (Reuters) - Australia's ailing car industry will get a A$3.2 billion ($2.2 billion) government support package to offset a halving of tariffs on imported vehicles from 2010, Sky Television reported on Monday.

Car makers build about 320,000 vehicles in Australia each year and employ about 60,000 people, accounting for about 6 percent of Australian manufacturing, and had asked the center-left government to delay tariff cuts to protect jobs.

But the government would proceed with long-standing laws cutting tariffs on imported cars from 10 percent to 5 percent in 2010, Sky said, with Prime Minister Kevin Rudd to offer more aid to help offset an expected slowing in sales amid global economic gloom.

($1=A$1.46)

(Reporting by Rob Taylor)