NBNMyths
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Sir lastnail wrote on Jul 22 nd, 2012 at 8:53pm: NBNMyths wrote on Jul 22 nd, 2012 at 8:32pm: Sir lastnail wrote on Jul 22 nd, 2012 at 7:51pm: NBNMyths wrote on Jul 21 st, 2012 at 11:13pm: I don't have a problem with Govt investing in the automotive industry, sensibly. It employs many people both directly and indirectly and contributes to advanced skills in engineering etc. We are one of only 15 countries worldwide with the capability to produce a vehicle right through from design to production, and we are certainly not alone in providing Govt assistance to automotive industry. IIRC, there are only 2 or 3 car manufacturing countries that don't provide assistance to the industry. The industry in the US, UK, Germany, Sth Africa, Sweden, Thailand (and many more) all get major Govt assistance.
There's nothing wrong with Australian made cars. On a value basis they are the equal of anything else in their class anywhere in the World. The problem is that they are not made by Australian companies and so they have little to gain by maintaining an Australian manufacturing operation. eg: The Falcon and Territory would be perfect for the US market. But they would decimate the sales of the Crown Vic and Exploder, so Ford does not want to export them there.
The key to getting value for the investment dollar is to tie it to exports. Only Toyota currently has a large export program for its vehicles, while Ford (especially) and Holden only have small export programs. The Govt should get serious about the industry and offer them major assistance. But only on the condition that they meet KPIs on exports of the vehicles.
All the vehicle manufacturers now are moving towards a worldwide standardised product line. There is no reason why Ford Australia could not be the production source of, say, the mid-size SUV for the World market (ie the Territory). Toyota have done it, Holden/GM have made a half-hearted attempt, Ford have done nothing.
The Govt needs to give the manufacturers an ultimatum: Take our money and export or get nothing and go away. RUBBISH !! What about any all Australian business that gets nothing ?? Are they supposed to take it up the arse each time Holden and Ford gets bailed out ? And how do countries like Germany have their OWN car industries which export premium quality cars all over the world whilst not having to continuously subsidize foreign car corporations ?? It's about time the Aussie gov grew a pair of balls and told these Holden and Ford scammers to f.ckoff. And they can leave all of their equipment behind because we have well and truly paid for that many times over !! It belongs to the Australian tax payer now. When Ford, Holden and Toyota get "bailed out" it helps plenty of Australian companies who supply those three. If Ford, Toyota and Holden go, then so do all their suppliers. The German Government actually give billions to their car industry. In 2009 alone, they provided $1.5 billion Euro to them in assistance. The German manufacturers have also started offshoring their production to other countries. In fact, "German" cars are currently made in the US, South Africa, Mexico, Argentina, India and China. Starting this year, there are very few BMW or VW models being sold in Australia that are made in Germany. Automotive industry assistance, worldwide: Yes but at the end of the day the profits stay in Germany unlike Australia where the profits are sent back to US head quarters. Where is the investmnet to the Austrealian tax payer ? What shares does the Australian tax payer receive for all of the money it has given these foreign car companies It would be a lot different if the money that was pored into the car industry here was used to support ALL Australian car companies but it is not. As such companies like Ford and Holden keep the good stuff for themselves in the US whilst giving Australia the scraps that nobody wants anymore. For example the Holden plugin hybnrid Volt is going to be manufactured in the US exclusively but they don't want to let Holden Australia make it nor does Ford which is working on an all electric car, plugin hybrid etc This is a recipe for a failed car industry in Australia where Ford and Holden will only stay as long as the Government keeps bailing them out just so that they can make outdated petrol guzzlers that nobody wants I would love nothing more than for there to be an Australian car company. But there isn't one, and there never will be. If Ford, Holden and Toyota close shop, then there will be no Australian car industry at all. It's not true that Australian cars are ones that "nobody wants". Nor are they all "gas guzzlers" (Witness Falcon ecoboost & ecoLPI, Cruze diesel, Territory diesel, Camry hybrid). While sales of the big cars (Falcon/Commodore) are down, they are still infinitely more popular than an electric or hybrid. Holden also make the small Cruze (which is doing quite well), and Ford have the extremely popular Territory. I do think there is promise in alternative fuel cars, but they are a long way from being mainstream. In the real world in which we live, it makes absolutely no business sense for GM or Ford to make those niche cars in our country, with its expensive labour and tiny market. There is plenty of world market for a variety of vehicles. We are good at building large sedans and SUVs in Australia. It's our strength. Hence my call for Govt assistance to be dependent on exports, and by extension the integration of Australia into the world plans of our three local manufacturers.
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