This is not just about car manufacture, it is manufacturing in general.

I clearly remember Whitlam saying, "Tarriffs don't protect jobs, they only protect profits". then cut tarriffs by some gigantic ammount. He started something that all governments have followed since, while our manufacturing failed or went off shore.

Today I am not sure how one can protect our industry, but look around the supermarkets and see just how little Aus made products there are.

We have allowed our own industry to fall by the wayside and import most consumerables which are rubbish.

yeah, let the car industry go, then let the spin off manufacturing sector go, then agriculture.

We can then celebrate by letting all the rich Chinese come and live here and set up shop for the Chinese masses to come visit us, fast broadband which will make it even easier to consume foreign services and products, gambling, lots of international students, and our barbaric live cattle trade.

Good one.

Chris

The economics are just stacked up too much against the Australian car industry. Even when it was subsidised and protected to the tune of thousands of dollars per car and tens of thousands per job, every year, it failed to make a profit more often than not. And conditions have shifted steadily against it. Not many people want to drive large gas-guzzlers like the Falcon and Commodore any more, and fleet buyers are also turning away from larger cars. The exchange rate has been

There will be economic hardship and tough adjustment as a result of this decision, and that’s regrettable. But if Australia wants a thriving manufacturing industry, it should focus on things it can do well and competitively, not try to sustain industries that are never going to be economically sustainable.

Forcing people to drive cars they do not want, or to pay for other people to drive cars they do not want, does not make the community better off.

Rhian, yes your points are relevant.

However, each time something goes wrong, many point to new areas where we can do well, but I am not sure there are many sectors we can look to prove our productive prowess. In other words, I feel our production-consumption balance will get worse based on recent trends.

I just wish someone would point out why Australia has nothing to fear from recent trends. Someone who can really provide the data to help quash my fears.

I asked someone from the IPA which industries will go well after further recommendations for govt to get out of the way, and that person did not know.

I don't think you're right there Rhian. I think there are very large numbers who would prefer a larger car, but are worried about fuel costs.

Obviously there are many women who prefer large cars. Just look at any school pick up zone, & check out the number of large & 4WD wagons.

I was waiting for someone on a road just south of Brisbane in acreage land a couple of weeks ago, & noticed the range of vehicles passing. When I counted them, of every 10 vehicles, one was a truck, one was a car, 2 were work utes/vans, & 6 were 4WD wagons or pretty crew cab 4WD utes.

Perhaps GM & Ford should have got into the 4WD market properly, rather than the half hearted way they have, & built them here.

I have personally seen Qld Govt cars utterly wrecked in just a year & the shipped south at a cost of $1000 to be auctioned for $500 or less for spares. That's the sort of economic sense I hope the Newman mob won't continue.
All our fleet cares are Toyota or Mitsushiti, not a single australian built one. All our Govt appointed consultants are from NZ ? Federal Govt building hired from the NZ Co. All perfectly reasonable economic management , NOT !