Case Study : Car Manufacturing Industry

1306 Words Sep 30th, 2016 6 Pages
Group assignment
Car manufacturing industry
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Description The car manufacturing industry in Australia involved three main competitors including, Ford Australia, GM Holden and Toyota Australia. There were four but in 2008 Mitsubishi Australia, but stopped production of the last domestic Mitsubishi model the 380. Mitsubishi stopped the production of the large sedan because smaller cheaper lancer sedans were selling more due to the change of market in Australia. The Australian market usually comprised of large sedans, utes and wagons with usually large displacement engines. The Australian companies only produced large cars up until GM Holden realised that consumers want smaller more fuel efficient vehicles and produced the Holden Cruze in 2008. The Cruze saved Holden and gave the company a few more years to operate in Australia compared to Ford. Ford received bailouts from the government to continue to produce cars in Australia, but Ford never used the grants to manufacture a smaller, more fuel efficient car much similar to GM Holden did with the Cruze. This is why Ford Australia has stopped production before Toyota and Holden. Image1
As such as evident in the chart above, the market share of Australia’s Automotive industry is substantially lower than other countries in the region, which is ultimately due to the cheap labour, outsourcing of manufacturing…
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