# Australia's Auto Industry is Over: Why did this happen and what can we learn?

**URL:** <https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978>\
**Category:** Great Debates\
**Created:** [February 10, 2014, 3:50pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978 "2014-02-10T15:50:02Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![John\_Stamos\_Left\_Ear](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_stamos_left_ear/32/3198_2.png) [@John\_Stamos\_Left\_Ear](https://boards.straightdope.com/u/John_Stamos_Left_Ear)\
**Post date:** [February 10, 2014, 3:50pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/1 "2014-02-10T15:50:02Z")

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While listening to NPR in the car this morning, I heard the [BBC World News](http://www.bbc.co.uk/news/business-26114894) report the following:

> [@](#):
>
> Toyota is to end its vehicle and engine production in Australia by the end of 2017, effectively marking the end of the country’s carmaking industry.
> 
> Vivek Vaidya, an automotive analyst at consultancy Frost & Sullivan, said he was not surprised by Toyota’s decision.
> 
> “Toyota was the last producer in Australia after exit of Mitsubishi, Ford and Holden,” he said.

Preceding Toyota in leaving the Australian market were Ford and General Motors. When the last factories close shop in 2017, Australia will be without domestic automobile manufacture for the first time since the Holden was introduced in 1948 and according to the linked article, 6,500 jobs will be lost between all three companies’ decision and that doesn’t include Mitsubishi whose last domestic car was sold in 2010.

As to why this is happening, the manufacturers themselves are blaming Australia’s economy making it cheaper to build cars in Thailand and America and import them than to build them locally.

> [@](#):
>
> Car manufacturers have been pulling out of Australia as the rising cost of doing business in the country has hit profits.
> 
> “We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort,” said Toyota president Akio Toyoda.
> 
> “However, various negative factors such as an extremely competitive market and a strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, have forced us to make this painful decision.”

However, there is also a political side to the issue:

> [@](#):
>
> Toyota’s decision comes despite appeals from Australian Prime Minister Tony Abbott, who has been looking to keep the carmaker operating in the country.
> 
> ABC also reported that Australian opposition leader Bill Shorten called Toyota’s decision an “unmitigated disaster”.
> 
> “The car industry has died under the Abbott government - it’s a disgrace,” he said.

Although one can easily surmise that Shorten is simply being opportunistic in using this to blast his opponent, there is evidence that he is correct that policy decisions led to this:

> [@](#):
>
> Australia’s carmaking industry has traditionally received billions of dollars in subsidies from the government.
> 
> However, a national commission recently recommended that the financial support should be ended and that car companies should cut costs instead.
> 
> “The government’s lack of support for manufacturing workers and the communities they support is contrary to the national interest, will harm our economy and devastate communities,” (Australian Manufacturing Workers Union Secretary) Mr. (Dave) Smith said.
> 
> Last year, Toyota - the world’s top global car maker by sales - found itself in a dispute with Australian car plant workers over proposed changes to their contracts, in an attempt to reduce costs.
> 
> This included changes to overtime requirements and the removal of additional allowances to trained first-aid officers and workers who make blood donations.
> 
> In December, Australia’s Federal Court blocked a vote on the contractual changes, which Toyota said it would appeal against.

I am not Australian and don’t know anything about the situation down there and would welcome Dopers from that part of the world to chime in. To me, this all sounds pretty intense that an entire industry that has been on the continent for over 60 years and was represented by massive car companies with their tentacles spread all across the globe would almost vanish within decisions made only only a few years apart.

Is this as big of a deal as it sounds? Or is 6,000 jobs and the domestic production of automobiles not really that important to Australia’s economic landscape?

Additionally, I can see how activists, politicians and commentators can look at what happened with the auto industry in Australia and conflate it to issues in other countries - specifically America.

On one hand, conservatives can point out how this is what happens when it simply costs too much to make something: the jobs get shipped elsewhere. Although it is odd to me that the Prime Minister who is taking heat for this is from the Liberal Party which apparently in Australian politics is the more conservative party (contrasting the opposition Labor Party), because the Labor party leader is angry that the government is stopping the automotive subsidies.

This seems the opposite here where the more Liberal American politicians would theoretically not be in favor of subsidizing businesses but would sympathize with the workers while conservatives here might speak about “free markets” but will almost always side with business interests. This is also why Republican governors will have no problem making country-wide tours designed to poach businesses from other areas by offering incentives.

It is difficult for me to make direct analogies since I am pretty unfamiliar with Australian governance and also since in America the politicians are all so grouped in the middle that it’s hard to figure out how we would handle such an abrupt withdrawal of an entire industry. And also, I might be ascribing the importance of the auto industry in America (it was so important that the government spent billions to ensure it wouldn’t fail) with the same industry in a country that might not be as reliant upon it.

With this thread I am hoping to learn more about how important this is to Australia, why it happened and what lessons we can learn in America and other countries.

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**Author:** ![WillFarnaby](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/willfarnaby/32/514_2.png) [@WillFarnaby](https://boards.straightdope.com/u/WillFarnaby)\
**Post date:** [February 10, 2014, 4:02pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/2 "2014-02-10T16:02:02Z")

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What is seen: cutting subsidies leads to unemployment of workers in auto industry  
What is unseen: cars are produced more economically elsewhere, lower prices for autos means higher standard of living for Australians in general; lower government spending benefits Australians in general

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**Author:** ![marshmallow](https://avatars.discourse-cdn.com/v4/letter/m/df705f/32.png) [@marshmallow](https://boards.straightdope.com/u/marshmallow)\
**Post date:** [February 10, 2014, 4:46pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/3 "2014-02-10T16:46:39Z")

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> [@John\_Stamos\_Left\_Ear](#):
>
> This seems the opposite here where the more Liberal American politicians would theoretically not be in favor of subsidizing businesses but would sympathize with the workers while conservatives here might speak about “free markets” but will almost always side with business interests.

Both Bush and Obama signed auto bail outs. AFAIK the majority of the resistance was from the right.

> [@WillFarnaby](#):
>
> What is seen: cutting subsidies leads to unemployment of workers in auto industry  
> What is unseen: cars are produced more economically elsewhere, lower prices for autos means higher standard of living for Australians in general; lower government spending benefits Australians in general

I remember many years ago the line was that it didn’t matter if manufacturing and tech jobs went away since everyone could join the service sector like salons, fast food, or real estate. Doesn’t seem to get trotted out much post-2008.

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**Author:** ![WillFarnaby](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/willfarnaby/32/514_2.png) [@WillFarnaby](https://boards.straightdope.com/u/WillFarnaby)\
**Post date:** [February 10, 2014, 4:50pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/4 "2014-02-10T16:50:56Z")

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> [@marshmallow](#):
>
> I remember many years ago the line was that it didn’t matter if manufacturing and tech jobs went away since everyone could join the service sector like salons, fast food, or real estate. Doesn’t seem to get trotted out much post-2008.

Hm maybe you quoted me by mistake. It’s all good.

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**Author:** ![PastTense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pasttense/32/14550_2.png) [@PastTense](https://boards.straightdope.com/u/PastTense)\
**Post date:** [February 10, 2014, 5:02pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/5 "2014-02-10T17:02:56Z")

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I think a major reason is the change in the exchange rate of the Australian dollar vs the U.S. dollar and other international currencies. The Australian dollar has become more valuable because of the massive Australian exports of coal and other natural resources–resulting in locally manufactured products becoming more expensive compared to imports. This would mean the auto industry is not the only industry affected by this.

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**Author:** ![nevadaexile](https://avatars.discourse-cdn.com/v4/letter/n/eb8c5e/32.png) [@nevadaexile](https://boards.straightdope.com/u/nevadaexile)\
**Post date:** [February 10, 2014, 5:28pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/6 "2014-02-10T17:28:02Z")

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Speculation: Transportation of their finished products might also be a major issue.

Think about it: Who in Asia would buy Australian cars when Japan and Korea have long established brands built in factories in or near their country? Without an export market and a tiny domestic market (Australia’s 2012 population is 21 million, or 3 million people less than the population of Texas) there’s really no way that Australia could afford to sustain an automotive industry.

Also, given Australia’s location away from the markets of Africa, North America and Western Europe the costs of exporting finished vehicles would have to be staggering. Without a sustained market for them (which doesn’t in North America. When is the last time you saw an Australian made car on US roads?) then the industry again falters.

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**Author:** ![steronz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steronz/32/11765_2.png) [@steronz](https://boards.straightdope.com/u/steronz)\
**Post date:** [February 10, 2014, 5:57pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/7 "2014-02-10T17:57:21Z")

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I’m by no means an expert on Australian auto production, but from my limited knowledge I know that their auto industry was never as vast as those in the US, the UK, or Japan. There’s obviously some benefit of producing cars locally, but typically they’ve been Australia-only models like the Falcon or Commodore. In the case of Toyota, it was the Aurion, a tarted up Camry (they also built Camrys). Toyota produced about 200,000 cars in Australia last year, a small fraction of the 8.7 million they built worldwide.

I’m pretty sure Toyota wasn’t building engines or transmission in Australia. When you have a limited product range and very few parts suppliers, the benefits of building locally are diminished. On top of all of these parts, Toyota still had to import all of the completed Corollas, RAV4s, Land Cruisers, Highlanders, and everything else that consumers wanted besides Camry and Camry-derivatives.

That was the main problem with the GM and Ford plants – as fuel economy became a larger concern, demand for the V8-powered RWD large sedans waned. Both companies were already importing smaller, more fuel efficient cars and SUVs/CUVs, and it just made more sense to ramp up imports than to retool their factories for new models.

In short, there wasn’t a whole lot of industry worth saving. I guess those 6500 workers might disagree, but it won’t have the same effect as British Leyland shutting down.

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**Author:** ![John\_Stamos\_Left\_Ear](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_stamos_left_ear/32/3198_2.png) [@John\_Stamos\_Left\_Ear](https://boards.straightdope.com/u/John_Stamos_Left_Ear)\
**Post date:** [February 10, 2014, 6:22pm UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/8 "2014-02-10T18:22:44Z")

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Malcolm Maiden, who writes about business for the The Sydney Morning Herald, makes the following observations [in a column dated tomorrow](http://www.smh.com.au/business/comment-and-analysis/why-toyotas-exit-will-hurt-more-than-holden-20140210-32cx3.html) (which is sneaky of those Aussies!):

> [@](#):
>
> Industry Minister Ian Macfarlane argued on Monday that Australia absorbs hundreds of thousands of redundancies every year, but as he also acknowledged, this is a huge moment for Australia.
> 
> It’s a test of the economic model that leaves Australia open to import competition and trusts that innovation will, in time, not only replace jobs that import competition destroys, but create ones of the same or better economic and social quality.
> 
> Two of the vehicle-makers, Holden and Toyota, have announced their decisions since the election of the Abbott government, which campaigned promising to cut assistance to the vehicle industry.
> 
> Toyota’s decision also comes after it failed last December in an attempt to alter its enterprise agreement with employees, with the Federal Court supporting a union-backed argument that it could not ask its factory workers to vote on the changes.
> 
> Toyota was considered to be Australia’s most commercially viable vehicle maker because its vehicle exports to markets including the Middle East gave it additional manufacturing volumes and economies of scale that could not be extracted from the relatively small Australian domestic market.
> 
> Some also thought that as the last vehicle-maker standing it would be the focus of government support. It may well have also seen local sales rise after its competitors departed in 2017, as ‘‘buy Australian’’ demand switched over.
> 
> Toyota has decided to go anyway.
> 
> The Federal, Victorian and the South Australian governments at least have some time to prepare for the evaporation of the industry in 2017.
> 
> Long-term, government needs to create the right conditions for new businesses to emerge. That is one of the Abbott government’s mantras, and Toyota’s decision will give its push for labour law reform momentum.
> 
> Governments also have to shelter the economy from the shock of the closures, however, and the exit of Mitsubishi’s from car making in Adelaide that began in 2004 is that re-training programmes are crucial. Most Mitsubishi workers found new jobs quickly – but they were most often lower paying ones.

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**Author:** ![JRDelirious](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jrdelirious/32/9531_2.png) [@JRDelirious](https://boards.straightdope.com/u/JRDelirious)\
**Post date:** [February 11, 2014, 2:25am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/9 "2014-02-11T02:25:22Z")

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> [@nevadaexile](#):
>
> When is the last time you saw an Australian made car on US roads?

If you looked really really carefully for it, maybe [late last year](http://en.wikipedia.org/wiki/Holden_VF_Commodore#North_America). Though probably we had a (very slightly) better chance of seeing one between [2004](http://en.wikipedia.org/wiki/Pontiac_GTO#Fourth_generation)and [2009](http://en.wikipedia.org/wiki/Pontiac_G8). They were not resounding successes.

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**Author:** ![Askance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/askance/32/8281_2.png) [@Askance](https://boards.straightdope.com/u/Askance)\
**Post date:** [February 11, 2014, 2:55am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/10 "2014-02-11T02:55:26Z")

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Another problem for the carmakers here was the sheer fragmentation of market. We now have 60 (!) carmakers from across the world servicing a domestic market of 23 million. When Holden/GM started in 1948 they had more than half the market for one model alone, so even with only about 7 million people then actual sales numbers **per model** were quite high. Now no one model sells more than a few thousand, and many down in the hundreds or fewer.

Oh, and I hear we were one of only 13 (IIRC) countries in the world who could design and make a car all the way from scratch to rolling off the production line. I wonder if that number is shrinking or we’re being replaced by others?

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**Author:** ![FoieGrasIsEvil](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foiegrasisevil/32/16638_2.png) [@FoieGrasIsEvil](https://boards.straightdope.com/u/FoieGrasIsEvil)\
**Post date:** [February 11, 2014, 3:08am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/11 "2014-02-11T03:08:13Z")

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This may be a stupid question, but if Australia’s auto production is failing, why is Britain’s thriving so? I was just watching the newest episode of Top Gear just awhile ago and they had a whole section on how their automotive industry is just gangbusters…everything from Ford engine plants, Toyota plants, places that make trim and gearboxes for cars like the Bugatti Veyron…everything. They certainly aren’t any closer to the Asian market than Australia…what makes the big difference?

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**Author:** ![Airman\_Doors\_USAF](https://avatars.discourse-cdn.com/v4/letter/a/e36b37/32.png) [@Airman\_Doors\_USAF](https://boards.straightdope.com/u/Airman_Doors_USAF)\
**Post date:** [February 11, 2014, 3:18am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/12 "2014-02-11T03:18:34Z")

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> [@JRDelirious](#):
>
> If you looked really really carefully for it, maybe [late last year](http://en.wikipedia.org/wiki/Holden_VF_Commodore#North_America). Though probably we had a (very slightly) better chance of seeing one between [2004](http://en.wikipedia.org/wiki/Pontiac_GTO#Fourth_generation)and [2009](http://en.wikipedia.org/wiki/Pontiac_G8). They were not resounding successes.

They were not resounding successes because GM’s marketing position for Pontiac had evaporated. Pontiac was GM’s “excitement” division, and over the last 20 years thanks to mismanagement they got things like the Aztek, the “Dustbuster” TransSport minivan, and acres of plastic body cladding on nondescript cars that were anything but exciting.

When the first Holden came over in the form of the GTO the styling was nondescript, which is something the GTO historically was not. People couldn’t make heads or tails of it. The G8 was far too late to save a superfluous division of a bankrupt company. They were also far too expensive thanks to the economic conditions previously described.

They were great cars, though. Aside from the styling the GTO got great reviews, and the buff books raved about the G8. GM’s strategy to save the company pre-bankruptcy was to import GM Overseas cars (Saturn and Buick got Opels, Pontiac got Holdens, Chevrolet got Daewoos), re-package them, and hope for the best.

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**Author:** ![XT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/xt/32/456_2.png) [@XT](https://boards.straightdope.com/u/XT)\
**Post date:** [February 11, 2014, 3:22am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/13 "2014-02-11T03:22:31Z")

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> [@FoieGrasIsEvil](#):
>
> This may be a stupid question, but if Australia’s auto production is failing, why is Britain’s thriving so? I was just watching the newest episode of Top Gear just awhile ago and they had a whole section on how their automotive industry is just gangbusters…everything from Ford engine plants, Toyota plants, places that make trim and gearboxes for cars like the Bugatti Veyron…everything. They certainly aren’t any closer to the Asian market than Australia…what makes the big difference?

My WAG would be they are closer to European and US markets and have a higher (or more concentrated) domestic market. Also, several UK brands are considered premium, so that probably helps.

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**Author:** ![Simplicio](https://avatars.discourse-cdn.com/v4/letter/s/c37758/32.png) [@Simplicio](https://boards.straightdope.com/u/Simplicio)\
**Post date:** [February 11, 2014, 3:24am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/14 "2014-02-11T03:24:19Z")

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> [@pasttense](#):
>
> ```
> I think a major reason is the change in the exchange rate of the Australian dollar vs the U.S. dollar and other international currencies. The Australian dollar has become more valuable because of the massive Australian exports of coal and other natural resources--resulting in locally manufactured products becoming more expensive compared to imports. This would mean the auto industry is not the only industry affected by this. 
> 
> ```

I think that’s the most rational worry. By itself, there isn’t really any problem with a small country with a mediocre history of car manufacture focusing in the stuff its good at and importing cars, rather then trying to keep afloat a non-competitive car industry in the face of several neighbours with lower labour costs and more well regarded car makers.

But [modern Australia seems like something of a text-book case for being a victim of the "Dutch Disease](http://en.wikipedia.org/wiki/Dutch_disease). It’ll be kind of interesting to see how the Aussie economy develops if commodities drive out all the countries industrial capacity.

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**Author:** ![Princhester](https://avatars.discourse-cdn.com/v4/letter/p/3e96dc/32.png) [@Princhester](https://boards.straightdope.com/u/Princhester)\
**Post date:** [February 11, 2014, 3:37am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/15 "2014-02-11T03:37:39Z")

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> [@nevadaexile](#):
>
> Speculation: Transportation of their finished products might also be a major issue.

No transportation cost is very low. That’s one of the problems the industry here had: there was no barrier to building cars somewhere cheap and getting them to Australia. If Australia had been able to produce otherwise saleable cars effectively, the cost of distributing them around the world would not have been a problem.

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**Author:** ![the\_diego](https://avatars.discourse-cdn.com/v4/letter/t/7bcc69/32.png) [@the\_diego](https://boards.straightdope.com/u/the_diego)\
**Post date:** [February 11, 2014, 3:56am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/16 "2014-02-11T03:56:46Z")

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It’s not the end of the industry. Heck, who and what is going to keep ALL vehicles running in that place? Ozzies will continue to buy cars, albeit imported parts, assembled locally. Just because at one point in history there no is car manufacturer there doesn’t mean there’ll be none in the future.

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**Author:** ![Princhester](https://avatars.discourse-cdn.com/v4/letter/p/3e96dc/32.png) [@Princhester](https://boards.straightdope.com/u/Princhester)\
**Post date:** [February 11, 2014, 4:06am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/17 "2014-02-11T04:06:29Z")

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I think with one notable exception the participants in this thread understand that the OP is about car manufacture, not car servicing.

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<div class="post-metadata">

**Author:** ![the\_diego](https://avatars.discourse-cdn.com/v4/letter/t/7bcc69/32.png) [@the\_diego](https://boards.straightdope.com/u/the_diego)\
**Post date:** [February 11, 2014, 4:12am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/18 "2014-02-11T04:12:57Z")

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By golly you’re right, I never would have noticed that. :rolleyes: My main point is the last sentence, which implies that local car component manufacture is just a segment of the entire auto industry. And while there is clearly a viable alternative (import-assembled or components import) there is certainly a possibility in the future that local manufacturing again be attractive to foreign companies.

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<div class="post-metadata">

**Author:** ![Simplicio](https://avatars.discourse-cdn.com/v4/letter/s/c37758/32.png) [@Simplicio](https://boards.straightdope.com/u/Simplicio)\
**Post date:** [February 11, 2014, 4:29am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/19 "2014-02-11T04:29:35Z")

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> [@the\_diego](#):
>
> And while there is clearly a viable alternative (import-assembled or components import) there is certainly a possibility in the future that local manufacturing again be attractive to foreign companies.

If its just a matter of the car industry, then I agree its silly to worry.

But I think there’s a decent argument that if Australias reliance on commodity export ends up driving out not just car manufacture but continues to shrink their manufacturing sector as a whole, it’ll be pretty difficult to restart local manufacturing should commodity prices drop or Australia’s natural resources start to run out.

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**Author:** ![Battle\_Pope](https://avatars.discourse-cdn.com/v4/letter/b/4bbf92/32.png) [@Battle\_Pope](https://boards.straightdope.com/u/Battle_Pope)\
**Post date:** [February 11, 2014, 4:38am UTC](https://boards.straightdope.com/t/australias-auto-industry-is-over-why-did-this-happen-and-what-can-we-learn/680978/20 "2014-02-11T04:38:29Z")

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> [@Princhester](#):
>
> If Australia had been able to produce otherwise saleable cars effectively, the cost of distributing them around the world would not have been a problem.

Part of the problem is that the ‘flagship’ models of Ford (Falcon) and Holden (Commodore) - both large, V6 or V8 engined, rear-wheel drive family sedans - were exactly the type of car the Australian market was moving away from, with more and more sales being smaller hatch-backs or sedans.

Despite knowing about the trend for years, the big manufacturers stubbornly insisted on producing cars for an increasingly niche market. It was like they were making cars for the Australia that existed 30 years ago when long driving holidays were the norm and air-travel was still relativley expensive.

When I was a kid we would drive from Canberra to Bundaberg (1,500 km each way) every Christmas to see our grandparents for two weeks. These days you fly up for a good holiday once every four or five years and skype the rest of the time.

Add in the fact that the locally made cars I had the misfortune to drive in (for work or a in friends car) were peices of crap. The fit & finish were woeful, they were expensive to maintain and the performance around town was worse than a good Mazda or Hyundai. We purchased a new car three years ago and didn’t even consider anything built here.

While I utterly despise the current government I do think it’s about time we stopped throwing money at an industry that has been dying out for years.

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