The Australian government today pledged a new A$200 million (RM576 million) bailout package for the auto industry as it looks to boost struggling sectors to help the economy transition away from mining, according to various reports. Mining, a major contributor to the Australian economy, is facing low market prices, writedowns by big players and layoffs.
Industry Minister Kim Carr said the funds would ensure the “automotive manufacturing sector has a strong future and continues to provide high-skill, high-wage jobs for Australians.”
“The motor vehicle manufacturing industry in this country provides thousands of jobs, billions of dollars in export income and investment and benefits in research and development. Our actions will provide crucial ongoing support for an industry that has been under considerable pressure with a high Australian dollar over an extended period and an increasingly competitive global market,” Carr added.
The announcement came on the opening day of a five-week election campaign that will culminate in national polls on September 7, with the ruling Labour party (now led by ex-PM Kevin Rudd, after he ousted Julia Gillard in a party vote), facing an uphill battle against the conservative opposition.
To be pushed along with the bailout is a new regulation mandating the purchase of Australian-made Commonwealth vehicles, which are part of the government fleet. “If the 100% Australian-made passenger motor vehicle fleet target the Australia government has committed to today was adopted at all levels of government, sales of Australian-made vehicles could increase by over 18,000 units per year. This represents an 8% increase on 2012 production volumes,” Carr reasoned.
According to The Australian, 86% of cars that joined the federal government fleet last year were made in Australia. Overall, 64% of the 7,046 passenger vehicles in the commonwealth fleet are Australian made.
The auto manufacturing sector employs more than 50,000 people in Australia, with another 250,000 jobs in the ecosystem. But it has struggled, until very recently, with the Australian dollar trading near or above parity with the greenback for almost two years, squeezing exports and compounding rising production costs.
Canberra extended a A$3.2 billion (RM9.2 billion) bailout to the embattled sector at the height of the global economic downturn and provided additional lifelines to Ford and Holden last year. But it was not enough to prevent the Blue Oval from announcing in May that it will stop making vehicles in the country by 2016. On a much smaller scale, last week, we saw GM brand Opel cease operations Down Under after less than a year in the country.
GM subsidiary and “national car” Holden, which in April announced a plan to slash 500 jobs, and Toyota (Aurion sedan pictured above) are the two remaining big players in the Aussie auto industry.
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same stories,different country
Holden (and soon to be defunct Ford Australia) make pretty good cars. The problem is that they don’t export them to other developing markets, and their core budget models are outsourced from General Motors.
Even if Holden does export their muscle cars to developing markets, prices would sky-rocket because of their high engine displacement. Unlike BMW, Audi and Mercedes Benz, Holden does not make turbocharged, low engine displacement models for developing markets. That’s why the Germans are selling so well in developing countries today. They found a really smart way to get around the pesky taxes and duties.
It’s just a shame, Holden and Ford AU are unique and awesome in their own right. If there is anything we can learn from the Aussies, it would be that no matter how good the car is, practicality, economy of scale and profits matter if a national car company is to be sustainable in the long run.
ok, i can’t agree more, business is about profit. ot has to be successful enough then it will fulfill any social responsibility. make it half-baked, then the contribution is not at as hoped by many or to be.
Holden rebadge and helps nothing to the economy.
Its a illusion national company just like Protong/Perodua.
Nowdays, we can’t compare Proton with Holden.
Proton has its own technology, in house design and engineering. Proton developed Campro with different variations, its ride and handling and chasis
Whether you like it or not, Proton owned Lotus.
So I don’t really agree that Proton is purely a rebadged company.
what…bailout? What a shame for a develop country. Maybe they shd change their governmentlah…
Change the govenrment? i think we shud too. but Aussie is easier to change the government because they are democratic. In Malaysia? Black out.. magic. lol
Holden does nothing but mostly a rebadge company, that is why their car cannot export (or no one want to import them). Same with all those Perodua, Protong rebadge.
When consuming is all local, it will hurt the economy since it will be all import calculated in the GDP.
NAZA cars, HICOM (automotive) all helps nothing to the growing of country economy, but getting the money to their pocket. If those supporter has not wake up yet.
Ironically, in Malaysia, Proton is solely surviving on the local market while foreign brands (Honda, Toyota, Nissan, Subaru) are actually the ones doing local assembly for overseas markets.
Proton does export at low quantity. Not to say No at all.
”déjà vu…”
Auto industry problem? Just consult Malaysia gov, forget democratic car industry,then your local car maker shall survive
U mean impose high tax on the imported cars? lol.. Ppl are not so tyrant like our useless G. Ppl think of the welfare of their citizen for not paying such a premium for imported cars.
the business model may change. for example if rebadging doesn’t really work, why not each of the depts namely designing, engineering and homologation / testing offer independent services to foreign makers. of course the techs and skills should be kept within the dept/company as an intellectual property maintaining the sustainability for the long run.
hey mike! u should learn from msia…protection, incentive, bailout from glc but in the end u get honda accord as gov fleet!
Is “mate” not “mike” like many Malaysia thought it was. lol.. Btw, dont influence them with failed Malaysia style management. Malaysian all janji dicapati, duit dimasuki poket kroni. Australian G are caring for their citizen and its not an ethical moves to impose high tax on imported cars just because u produce shitty local cars.
just troll…coz i like when they said mate but sounds like mike hehehe…
Supporting owned product will help local manufacturer to expand. Provided not to misuse it and stay within the comfort zone.
Look at how Korean expand their brand?
10 years ago, Kia Sephia rolled out, many complain about it.
10 years after, Kia Cerato rolled out, Many say better than honda Civic, why? If you look at korean street, 90% over are local manufactured product.
while Malaysian keep on, complain about its product together with the attitude “tidak apa” from local SC, QC, or whatever just mentioned __> this is what you pay for.
Because the Korean are keen to improve! They learned their mistake and improve, even Korea open market or sell their own car higher than a Ford or Toyota, they still feel proud driving their own car! Malaysia on the other hands is a whole different story, our car never improved till now. The most basic fit and finish they still struggle to do it right. 20 years ago Korean car is on par with Proton, but now is a whole different league.
gua rasa la, our govt shud NOT use honda accord, just use preve!!! preve vip special edition for ministers, preve vip for high ranking govt officers.
preve prime SE for PM, preve VIP for officer…preve RIP for rakyat