Friday, 14 July 2017

GM Holden To End Australian Car Making

Holden Commodore - Not enough export demand

I wrote an article about Ford leaving the Australian car making scene (by the end of 2016) not that long back. That blog and data about historical car making 'down under' can be viewed by clicking here. This is followed by the news GM Holden is going too (in 20170, in  leaving just Toyota as a stand alone manufacturer. It would not be cost effective to have just one car maker. So why the exodus?

Elizabeth Plant, South Australia

Simply put it is too expensive to continue, especially the car making volumes involved. It is so much cheaper to make cars in Asia and import them. Only import tariffs could have protected the industry, but that would make cars much dearer for everyone.

In 2012, Toyota made 101,400 cars, GM Holden 82,100 and Ford 37,700. Total 221,200, which for three car manufacturers not sustainable.

Some Australians wanted the industry propped up with the subsidies it was getting. Others said it was good money that could be better spent elsewhere. I agree with the latter sentiment. There must be industries in Australia that the same money could really help them to prosper. Help a person who always needs handouts, and they will keep coming back for more. Help someone who can help themselves, and they will then be able to look after themselves.

PS. My mother worked for a short while at Holden, South Australia, upholstering car seats.

For more in depth on the subject, please click here.

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