mr love said..


ALL countries that have vehicle manufacturing subsidise the industry with either tariffs, co- investment or other means. Out of the 13 countries that build cars Australia was the least subsidised. It is also one of the most open and competitive markets due to low levels of protection and our high currency attracting lots of imports. You simply cannot attract the multinationals to build cars in your country without some form of co-investment or protection, why, because it is not a level playing field and other countries are dangling big carrots to attract that investment, that is the way of the business world.

The Australian Government was divided on their position to ongoing support, they had the facts, the timelines yet the rhetoric was mixed and at times very negative and even aggressive. There were many factors in GMs decision to pull the pin but you would be naive to think that the government behaviour was not a factor.

The flow on effects of having large scale manufacturing like automotive are large. It employs lots of people, it invests in R&D, it creates a chain of first, second and third tier suppliers who in turn employ lots of people. It attracts foreign investment. It trains and develops skills, supports educational institutions in fields such as engineering and design. I could go on and on. If you don't believe me then go and read the US treasuries report into the 2008/2009 bailout of GM and Chrysler. It ultimately cost the US taxpayer 10.5 billion and saved them 103 billion in lost taxation, unemployment benefits and food stamps and saved a minimum of 1.5 million jobs.

ikw777 said..

And now they have flagged there will be no more money for Toyota
www.abc.net.au/news/2013-12-14/tony-abbott-rules-out-more-money-for-toyota/5156774

The mind boggles.

Stuthepirate said..

Football, Meat Pies, Kangaroos and Holdens.
.

FormulaNova said.. the ones in the US meant to be cop cars have a really low end interior spec, so its not quite as luxury as you would think from the name, so you can't compare them 1 for 1.

cisco said..

Yes. I never could warm to the idea of the taxpayer being forced to fund private corporations. It is the welfare state on steroids.

Possibly this situation will be a boon to car repairers and after market parts manufacturers.

The car industry has been shoving new vehicles into the top of the market willy nilly when there are more than enough cars on the road already.

Then of course there is the question of carbon footprint/environmental sustainability and peak oil.

New vehicles have progressively been getting poorer in quality, less long lasting and less repairable for decades. My 29 year old XE Fairmont is not quite as fuel efficient as the current model but it is certainly a lot more repair efficient and could quite easily still be on the road for another 29 years.

I just cannot develop the same optimism for current model vehicles.

Australia does need an automobile manufacturing industry to produce a range of vehicles specifically designed and built to suit Australian conditions and primarily for our domestic market.

If other countries want to buy them too it would be a bonus.

My 2 cents worth.