Australia 's Automotive Industry Overview

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1. Australia’s Automotive industry overview The Automotive industry in Australia is composed of a variety of smaller industries that have performed unsteadily over the five years through 2015-16. Motor vehicle wholesalers and dealers have been supported by high sales of new cars and the increasing numbers of motor vehicles registered on Australian roads have benefited service agents. On the other hand, local motor vehicle producers have a complex scenario because high petrol prices during the past five years period in Australia, made consumers to choose reasonably priced, fuel-efficient imported vehicles rather than high-consume locally manufactured cars. As a result of these opposing tendencies, industry revenue is predicted to rise at…show more content…
Australia’s automotive manufacturing industry is going through an important change: · Motor vehicle manufacturers in Australia could not find the way to remain competitive in the aggressive international and national automotive markets; Ford, Holden and Toyota have made public they are not going to produce anymore local manufacturing before the end of 2017. · As a consequence of the closing of the motor vehicle manufacturing plants and the pressure and ongoing adjustments on the supply chain, it has been calculated that up to 40. 000 people will possibly lose their jobs. It is imminent that job losses will be ongoing over several years. · The Australian automotive manufacturing industry is one of the most heavily subsided. Many years of assistance to automotive manufacturing firms ($30 billion between 1997 and 2012) has anticipated, but not stopped, the current big structural adjustment of the industry. · Labour expenses in automotive manufacturing are considerably higher in Australia than in countries such as China and Thailand but not significantly different from those in developed countries such as Germany and Japan. The labour market in Australia is quite unstable; many workers lose their jobs in a one year period and many people with no job are hired. From February 2012-2013, about 355.000 people were fired across Australia. Unemployment and social disadvantage in this industry are specially concentrated in the following regions: North
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