The current federal election is seeing the Labor Party throwing $2 billion in support for the auto manufacturing industry- on top of commitments already made.
Then, of course, we have the FBT changes that have crunched our vehicle sales figures since the announcement in July. So we are trying to save the industry by throwing money at it – but at the same time we are killing sales through changes to FBT.
Australia is one of only 13 countries in the world which manufactures a motor vehicle from design to showroom. We have developed quality manufacturing and design skills that, if lost, will never be available again.
The challenge is not about throwing money around, but in developing a plan for the industry. The problem is that we have only two manufacturers left in this country and they are both owned by overseas companies.
Our ability to produce quality vehicles at competitive prices is based on volume. Korea, Japan, Thailand built their industry on exports. The international owners of our manufacturing industry are happy to take our money, but they have consistently refused to allow our national manufacturers to develop serious export sales.
Holden has exported engines, because we build quality performance engines – they have also exported the Monaco and the Statesman. They have also exported to New Zealand and Pacific islands, as do Toyota and Ford. Unfortunately that is where the story ends.
The real unquestionable facts is that without exports, the industry cannot survive beyond the next few years, with or without subsidies.
The other fact is that our economy has up until July 2013, purchased in excess of 65,000 utes, such as the Toyota Hi Lux, and all of these are imported with the exception of he Ford Ranger. Why don’t we get behind the Ranger and encourage all government departments to buy it and or why not allow a faster rate of depreciation?
We need to build a greater range of popular vehicles and, most importantly, we need to develop an export industry. It is absolutely a waste of money to simply throw money at the problem.
We need to review the industry, similar to the Button plan during the 1970’s, and develop a strategic plan for the next 20 years exactly the same way that the car manufacturers do to run their own businesses.
Without this approach our important car manufacturing industry will ultimately die, and we cannot allow his to happen.
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