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 Organization International des Constructed automobiles (COCA) also known as the International Organization of Motor Vehicle in English the combined market hare 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 sass’ reaching 10th place in the World (Musical).
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 Leland Motor Corp., Mediumistic Motors Corp. and General motors wanted to ion 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 totaled 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 manufactures Toyota, Ford and general motor’s Holder 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 forever,” according to Industry Minister Ian McFarland, who added that Toyota had made no request to Canberra for financial assistance(Wallace, Ferguson ). When prime Minster Tony Abbott was asked for his response of the departure of the three major car manufacturers he stated that “The job of overspent is not to offer false hope or miracle cures. The Job of government is to sit down and carefully and methodically … Sort out what is best done in difficult situations,”.
The prime Minster also brought up an example of a city Newcastle which lost Its steel works In the early sass, stating how the town turn out to be a… “Different and many would say somewhat better city this stance however is in direct opposition to what the Liberal party and Tony Abbott said in the run up to the previous election “Any government which makes it harder to manufacture cars is making it harder for us to continue to be a first world economy because without cars, without steel, without aluminum, without cement, we don’t have these manufacturers In Australia, we are not really a sophisticated economy 2011(Liberal. Org). One of the major concerns of this move is the question of what impact will all of this have on the local Jobs? Well the Ford Motor Company will still employ more than 1500 Australians after its manufacturing exit, most of them in product development. Australia will indeed become one of the four product development hubs for the Ford Motor Company globally, and will continue to engineer, design and test vehicle’s from around the globe.
Holder has already stated that they would “significantly reduce its engineering operations” when it discontinues vehicle manufacturing and production in 2017. They are also selling most of their assets including the Lang Lang vehicle testing ground in Victoria one of the largest privately owned proving ground in Australia.