The automotive manufacturing industry is among Australia’s advanced industries. This made the economy boom up to $21.5 billion bigger based on its economic welfare net value calculation. From deploying manufacturing technologies to adding value to the economy, it’s receiving a fair amount of support from the government – about $500 million annual funds.
Out with the New, In with the Old: Australia’s Changing Automotive Industry
1. Out with the New, In with the Old:
Australia’s Changing Automotive
Industry
The automotive manufacturing industry is among Australia’s advanced industries. This
made the economy boom up to $21.5 billion bigger based on its economic welfare net
value calculation. From deploying manufacturing technologies to adding value to the
economy, it’s receiving a fair amount of support from the government – about $500
million annual funds.
2. What Would Australia Be Without the
Automotive Industry?
An analysis presented by The Allen Consulting Group
revealed that Australia’s GDP might go down by $7.3
billion by 2018. If the automotive industry would
disappear, foreign direct investors would go away.
Instead of placing funds in Australia, head offices would
look for other countries to invest in. The analysis also
added that employment might fall by 1.5% or more.
What Is Happening to Australia’s
Automotive Industry?
Australia’s automotive industry focuses on three major
subsidiaries: Ford, General Motors Holden (GMH) and
Toyota. Unfortunately, Ford announced in 2013 that it
would stop manufacturing by 2016. GMH and Toyota
also did the same the following year, saying they would
stop production by 2017.
The Australian dollar is getting stronger by the year, so
the cost of manufacturing is increasing. As a result, this
has put automotive sales under pressure.
3. What Is Happening to
Consumers in Australia?
Even though the top subsidiaries promised to import
vehicles in to the Australian market, many consumers
are assuming that prices will increase drastically. For
those who are on a budget, looking for alternatives is the
ideal choice.
Buying a used, forfeited, or salvaged vehicle through
dealerships and auctions might seem risky, but this doesn’t
necessarily mean that consumers will never get a good deal.
It’s true that buying them requires further research and hard
work, but the satisfaction is almost the same.
As the automotive industry tries to keep up, consumers are
finding ways to buy vehicles without blowing their budget.
There’s no telling when another change in this industry will
happen, but Australia hopes it’s for the better.
Source:
http://www.abc.net.au/news/2013-08-14/toner---car-manufacturing-in-australia/4886462
http://www.industry.gov.au/industry/automotive/Statistics/Pages/default.aspx
http://www.pickles.com.au/
