Australia auto industry

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  • LeeG
    Senior Member
    • May 2002
    • 72803

    Australia auto industry

    Hey BigFella, you must be up on this stuff, is the Oz auto manufacturing disappearing?

    Australia's loss-making car industry is under threat and risks closure following Ford's move to end nearly 100 years of local manufacturing.


    Industry leaders have warned the closure of one big car maker would likely result in the industry shutting down. In frank comments last month former global Ford chief executive Jac Nasser, now BHP Billiton chairman, said the end of car manufacturing appeared ''inevitable''.

    Read more: http://www.smh.com.au/business/era-o...#ixzz2UxdhHRXu
  • skuthorp
    Senior Member
    • Jan 2002
    • 73620

    #2
    Re: Australia auto industry

    Ford has flagged it's exit in a year or three, economies of scale will probably mean the demise of many small parts suppliers as Toyota and GM are not a big enough market to sustain them. I think, unless a government decides to finance a manufacturer for strategic reasons, they will all go.
    The local saloon racing scene is quite strong but has been fuelled by the rivalry and the supporters of GM or Ford cars. Bathurst being the yearly culmination event. The competition will look quite different without the factory teams and the privateers supported by the big rivals.

    Comment

    • Paul Pless
      pinko commie tree hugger
      • Oct 2003
      • 124833

      #3
      Re: Australia auto industry

      Originally posted by The Bigfella
      I'm not sure I've made up my mind whether it'd be good or bad yet.
      Y'all should give it up, concentrate on what you do best. . . . . . . . digging up your precious mineral wealth and selling it without regard to who or without adding any additional value to it. <sigh> If only that Spitfire thing could have come through for you. . .
      Last edited by Paul Pless; 06-01-2013, 06:38 AM.
      Simpler is better, except when complicated looks really cool.

      Comment

      • skuthorp
        Senior Member
        • Jan 2002
        • 73620

        #4
        Re: Australia auto industry

        That's a fair analysis Paul, and I can't see it changing soon. Oh yeah, and we're flogging our agricultural land off to the Chinese as well these days, vertical integration of the food chain doncha know. Before them it was the Brits, then the Yanks, then the Japanese so it's a process we're used to. And all those shiny new buildings going up? Chinese money, sometimes Chinese labour, but she'll be right, both our major political parties say so.

        Comment

        • Paul Pless
          pinko commie tree hugger
          • Oct 2003
          • 124833

          #5
          Re: Australia auto industry

          Originally posted by The Bigfella
          There's not a 40 year old in Oz who's ever gone through a recession during their working life... except those who worked in the USA, UK, etc, etc....
          Enviable. There's similar periods in many other economies, including the United States, most recently circa 1939 - 1974. The questions are, what are you doing with your wealth to make your economic growth sustainable? Are all segments of your population sharing in your wealth, indigenous peoples, women, immigrants, other minorities? Is your environment compromised by the extraction of your mineral wealth? Are you setting aside money and resources and investing in skills now, to overcome future environmental issues if and when your resources become either supply or demand compromised?
          Last edited by Paul Pless; 06-01-2013, 08:25 AM.
          Simpler is better, except when complicated looks really cool.

          Comment

          • Reynard38
            Senior Member
            • Sep 2009
            • 12533

            #6
            Re: Australia auto industry

            The now extinct Pontiac GTO was a Holden wasn't it? Really a neat idea. Mid sized sedan with a corvette motor.
            The suspension was crap, but that's easy enough to fix.
            Wasn't a big seller here in the US. Some complained it was too understated, though to me that's a good thing.
            Fight Entropy, build a wooden boat!

            Comment

            • purri
              Senior Member
              • Sep 2009
              • 12954

              #7
              Re: Australia auto industry

              So the ride wan't akin to a luxo-barge then?
              Originally posted by Reynard38
              The now extinct Pontiac GTO was a Holden wasn't it? Really a neat idea. Mid sized sedan with a corvette motor.
              The suspension was crap, but that's easy enough to fix.
              Wasn't a big seller here in the US. Some complained it was too understated, though to me that's a good thing.
              Xanthorrea

              Comment

              • Paul Pless
                pinko commie tree hugger
                • Oct 2003
                • 124833

                #8
                Re: Australia auto industry

                Originally posted by The Bigfella
                I'm not sure I've made up my mind whether it'd be good or bad yet.
                What'd you decide?
                Simpler is better, except when complicated looks really cool.

                Comment

                • Paul Pless
                  pinko commie tree hugger
                  • Oct 2003
                  • 124833

                  #9
                  Re: Australia auto industry

                  What other Australian industries does the collapse of auto manufacturing put at risk?
                  Simpler is better, except when complicated looks really cool.

                  Comment

                  • skuthorp
                    Senior Member
                    • Jan 2002
                    • 73620

                    #10
                    Re: Australia auto industry

                    "we used to have competitive energy costs... I wonder what happened there?"
                    We sold it. At present energy consumption is falling, but to keep up the (private) shareholder returns the companies keep putting up the supply charge. Of course not all states are playing this game, yet. The Feds are not amused. It's ideological of course.

                    Comment

                    • slug
                      Banned
                      • Dec 2012
                      • 8131

                      #11
                      Re: Australia auto industry

                      Should the government allow the automakers to disappear to make room for a new industry manufacturing robots or some other product that will create quality employment for future generations ?

                      when do you kill a legacy industry ?

                      Comment

                      • Paul Pless
                        pinko commie tree hugger
                        • Oct 2003
                        • 124833

                        #12
                        Re: Australia auto industry

                        Originally posted by slug
                        Should the government allow the automakers to disappear to make room for a new industry manufacturing robots or some other product that will create quality employment for future generations ?

                        when do you kill a legacy industry ?
                        interesting thought, australia has a lot going for it: highly educated workforce, abundant natural resources, well developed capital markets. . .

                        curious that they can't support any type of advanced manufacturing
                        Simpler is better, except when complicated looks really cool.

                        Comment

                        • George Jung
                          Senior Member
                          • Jan 2004
                          • 31057

                          #13
                          Re: Australia auto industry

                          Maybe they're following the US model, Paul!
                          There's a lot of things they didn't tell me when I signed on with this outfit....

                          Comment

                          • skuthorp
                            Senior Member
                            • Jan 2002
                            • 73620

                            #14
                            Re: Australia auto industry

                            We dodged the GFC but the chickens are coming home to roost I fear. BF and the right will tell you it's the Unions, but the exchange rate has had more to do with it. It's ideological.
                            The left? Emasculated by their own internal conflicts and a leader not in control of his own party appointments.
                            We'll just have to get used to it.

                            Comment

                            • Phil Y
                              Banned
                              • Apr 2010
                              • 21066

                              #15
                              Re: Australia auto industry

                              With an effective minimum wage around $20 an hour (and I imagine a minimum award wage in the car industry well above that) and no real economies of scale, it isn't possible to compete. Locally made car sales have been falling for years, mostly in favour of foreign four wheel drives, which are essential kit to drop the kids off at school.

                              Comment

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