The car manufacturing industry; can it be saved and if so should it? What’s best for Australia?

Topics: Automotive industry, Manufacturing, General Motors Pages: 3 (903 words) Published: May 3, 2014
The car manufacturing industry; can it be saved and if so should it? What’s best for Australia? It was only a few years ago that there were four major car manufacturing companies making cars in Australia, but by 2017 there will be none. Australia is only one of the few countries with the capabilities to design engineer and manufacture cars from scratch in significant volumes, however according to the research done by the Organisation Internationale des Constructeurs d'Automobiles (OICA) also known as the International Organization of Motor Vehicle in English the combined market share of Australian manufactured cars has been losing an average of 6% of its market share for the better half of a decade. The Australian Auto-Mobil manufacturing industry hits its stride in the early 1970s’ reaching 10th place in the World (Mushalik). During that decade nearly half a million units where manufactured this nearly doubled the manufacturing rate from the previous decade. This increase in manufacturing help put Australia on the map and soon companies like Chrysler, British Leyland Motor Corp, Mitsubishi Motors Corp and General motors wanted to join Ford’s success. the result was large scale growth for the industry and in completion as well this started many industry practices such as cross company relation where one car manufacturing company would share and sell its designs to others. This was how the modern car manufacturing industry was born. By 2012 the number of cars manufactured in Australia totalled less than 210,000 in number, as a result of the high Australian dollar coupled with the relatively high cost of wages and lack of support from the federal government forced the three remaining major car manufactories Toyota, Ford and general motor’s Holden to cease manufacturing cars in Australia by the year 2017 this affectively means that from 2017, Australia will not have a local car manufacturing industry. “This decision will change the face of industry in Australia...
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