Well, this was very predictable.
We of all first world countries, subsidize manufacture less than any first world country! Car manufacture supports more than 30,000 jobs in Victoria alone. And flow on factors could end up costing more than 150,000 jobs.
Some of these workers could be employed elsewhere; as part time drink waiters and boot polishers for the tourist industry? But many will go from being productive taxpayers to dole recipients.
These two numbers as lost tax and increased benefit allowances, plus the probable recession that will flow, could conceivably cost much much more than subsidizing car manufacture in this country.
Rationally, we could have limited that taxpayer support to just one car company; namely, that which had developed a large exponentially expanding export market!
Other companies looking at earning similar support, could have developed a significant export market?
We lead the world in molded carbon fibre production! We invented methane powered ceramic cells. and there is a large market in our region for clean running carbon free, right hand drive electric vehicles!
Why haven't we rolled out with urgent alacrity, both CAD and CAM facilities and training in all out technical schools and TAFE colleges? Way aren't we looking 20/30/50 years ahead and a feasible plan to quite dramatically drive down manufacture costs? Namely, the quite exorbitant cost of energy, transport and water.
Why haven't our so-called leaders already acted to reduce the tax bill of all local industry?
95% of corporate Australia is headquartered offshore; namely to avoid or minimize tax.
50% of something is always better than the 100% of nothing we now receive as company tax, from at least 40% of these multinational companies?
Why is it so difficult to reform this industry?
Lack of the requisite testicular fortitude in our so-called leaders perhaps!?
Even when every boy and hie dog knows, we have no other choice, if we wish to remain a country that still makes things, even as our mining industries decline; none of which can ever be replaced by dining industries!.
Rhrosty.

Nothing lasts for ever. At least this seems to relate in no uncertain way to companies world wide. As an interesting exercise I typed into Google

"what is the average life time of a company ?"

I was quite surprised at the plethora of information and statistics that were revealed. I would invite you to take a look. Apparently the average expectancy of a multinational corporation-Fortune 500 or its equivalent, is only between 40 and 50 years.

The American auto industry is also in a parlous state and you only have to look at the City of Detroit and the fact that they are now bankrupt to realise that we are in an ever changing world. Things die and are born again. It's the way things are and will continue to be. It's very sad, but we live in a world of change so we have to remain flexible. Even with a lot of technological development the market will always dictate outcomes.

I read that America's top personal computer maker, Hewlett Packard was dumped from the Dow.. Just one more example and Professor Foster estimates that by 2020, more than three quarters of the S & P 500 will be companies that we have not heard of yet

I just thought another perspective should be introduced to this discussion.

......BUTCH your walk away prize money is for employees that have been there for twenty and thirty years.

Ar 579, never let the truth get in that way of a good story, hey!

Firstly, you forgot loadings and perks.

Secondly, the walk away money as you call it was an average figure, so your extra long tremors would receive more.

Snake, I agree with what you say, accept that I doubt there will be many out there willing to take the risk to fill the void.

I too think it's worth trying to save one of the three car makers, then, rather than just provide a hand out, we buy into that company so at leas if they walk, we retain the plants.

The other effect these closures will have is that they will most likely see real wages take a dive, simply because of the imbalance in the supply and demand labor market, funnily, the same market force that drove wages and conditions to where they are today.

meanwhile we still have huge anounts of tradespeople coming from Sth Africa and every other nation on 457's. Something does not add up. Why are not those on the Government gravy train taking up these 457 jobs?

Rehctub, why would we want to retain the plant ?
By plant I presume you mean all the machines, robots etc ?
The buildings I can see could be useful for a business park.
Probably the robots etc will be taken by the car companies or returned
to the lessors.

Whatever engineering business is established it is unlikely to be such
as heavy engineering, but electrical and or electronics or similar
automation industries.
The future of transport is almost certain to be very rail orientated.
I can suggest one project that could use part of a car factory.
To build an automated container transfer system to move containers from
one train to another at break of gauge points and to also automatically
load and unload containers on & off road trucks.

Someone with more knowledge of railways than me would probably be
able to make many more suggestions such as signalling equipment.

However what it needs is politicians that can see the changes coming
and see future needs.

About 40 years ago Australian clothing and footwear industries moved overseas; we now import cheap footwear and clothing. About 20 years ago hardware and building product manufacturing moved overseas we now import cheap hardware product because local costs cannot compete. Currently we see car manufacturing going overseas because imported cars are cheaper than local manufactured.

People will find employment but the wage packet will be smaller as we move toward World equalization and we are ruled by fewer employers