Essay on Motor Vehicle Manufacturing in Australia

1804 Words Jul 27th, 2011 8 Pages
Motor Vehicle Manufacturing in Australia

INDUSTRY ANALYSIS

Overview

Thomson (2003) explains that the manufacturing of motor vehicles is a global game. Thomson (2003) argues that Australia does not really have domestic businesses that manufacture motor vehicles as the three major car makers (GM Holden, Ford and Toyota) are all subsidiaries of foreign companies. However, this is not the case, GM Holden for example produces many cars a year in Australia for Australian consumers as well as engines for export.

Industry Attractiveness
The Ibis report (retrieved 1 August 2010) shows that the motor vehicle manufacturing industry in Australia is a $11.8 billion industry where 19,025 are employed. The industry is said to grow annually
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With new technologies coming out constantly it is those who can keep up-to-date or even ahead of time that will succeed. As Wright (2008) explains the major risk index is first competition then imports followed lastly by life cycle of cars.

COMPANY ANALYSIS
Brief News
In late 2009 General Motors (the subsidiary of Holden in Australia) filed for chapter 11 bankruptcy, however Holden Australia guarantees to continue to manufacture and maintain operations in the Asia Pacific region. Moreover Holden has taken all necessary steps to weather the economic downturn, including cutting employee shifts and pay cuts across the board. Holden also states it is in position to be a future economic hub in emerging regions along with China and Korea.

Overview
According to Ruthven (2004) Holden started in 1856 in South Australia, a far cry from what Holden is today, boasting that it is only one of seven fully integrated General Motors operators that designs and builds cars and motors for Australia and around the world. Holden hold 29.4% of the market share in the motor vehicle manufacturing industry in Australia.

Scope
With representation of over 300 retail outlets amongst all of Australia Holden also boasts a vehicle manufacturing plant in South Australia and a motor manufacturing plant in Port Melbourne. There is an availability to build over 40 different car models with…