DISTRESS CALLS OF AUSTRALIAN CAR MANUFACTURING SECTOR
Australia is a multi cultural society and needs a lot of vehicles particularly the cars, to help the commute. Australia was the favourite destination of cars companies to open up there ventures. The primary Australian car making companies are Ford, Toyota and Holden. Most of Australian cars manufactured by these companies are SUV as to cater the large families of this multi ethnic country. But in recent times these Australian car brands are shutting down there plants or in a mood to exiting the economy due to lot of tiring facts erupt in the economy. The Australian car manufacturing sector is very challenging and small and hence these three major companies have to rely upon each other to sustain their self in this market. Following are the problems faced by the each Australian car brand
FORD and Australian car market
FORD – Australian Ford has recently announced that it will shut down its local vehicle production in 2016, which will mark the death of ford falcon and territory and the loss 1200 jobs. The company is ending its long relationship of local manufacturing due to the fragmented economy and unexpected ups and down. This decision is also an after effect of the Toyota’s ending of car manufacturing in Australia as it was too suffering losses and hence took the decision to left for better. The ford company which is a proud Australian car brand ending its 125 year relationship with the country. In an interview the spokesperson of Australian ford said that they understand the transition and are just changing themselves according to the time. They are proud of their contribution in Australian history and culture.
TOYOTA and Australian car market
TOYOTA – According to World Bank Australia is making the car since it has become a country with the third largest number of car ownership in the world. Toyota a well known Japanese car making brand entered in Australia just a few years back but now it has stated that they won’t produce any further in Australia owing to the great economic problems in the Australian economy. Acc. to it, the Australian auto manufacturing sector is very tricky job; they came with the view to expand them but became the first one to exiting from its unpredictable market. It has started the course of ending production as Ford and Holden too has decided to end there local production in the country, just after 9 months of Toyota’s exiting. The main problem lies in the continuous decreasing in the prices of Australian currency and increase in American dollar which has created a vacuum. Toyota and other companies have to put a lot of effort to reduce the car’s cost in order to make them survive in this low cost competition (given by imported low cost Asia made cars) but despite of all of these attempts, they failed to do so and hence it has forced them to leave Australian car market.
Holden- Just like ford it is too ending its relationship with Australian economy and has stated that it will pull the plug all of its domestic production units by 2017 and will start importing the cars like other by 2018. This will result in to 2900 job lost and the thing which is to blame is the Australian economy
In order to get back on track the Australian car manufacturing industry, Australia have to take corrective measures and should start taking remedial steps immediately to increase its currency value, otherwise the economic condition will get more worst.