It's dead but not as we know it!
November 15th 2008 13:02
In a twist almost Darwinian in flavour, the motor industry worldwide is about to become the survival of the fittest.
Here in Australia, the Rudd Government have committed to injecting $6.2 Billion into the Australian motor industry, which is a brave move. Admittedly the government does rake more than a little tax (try heaps) back through tax and GST on retail sales on new motor vehicles, luxury tax on prestige cars, petrol excise, I could go on! The whole point is they have a vested interest in keeping the industry afloat from an employment and also monetary point of view.
Holden and Ford could be the biggest losers as their respective head offices in Detroit slide deeper into a fiscal black hole, Holden may survive but don’t be too surprised to see a new corporate identity control it from Asia rather than the USA.
Ford are already making noises that the new Falcon will be front wheel drive and V6, which means it will be based on a Taurus or similar platform. The news here is, they will more than likely not build it in right hand drive form in Australia, they cannot justify the investment for the low volume that the Falcon now generates! Future plans for the Ford factory at Broadmeadows included building the Focus but if memory serves, that is not due to happen until 2011, which may be too little, too late.
Looking strongest of all is Toyota, the Camry is still a strong seller, the Corolla, although imported is always at the top of the sales charts. They have a range of hybrids already available in Japan and they have massive cash reserves.
No matter what happens the changes will be profound, for instance will Australian car buyers consider a Holden Commodore, still be a Holden, if built in China?
Here in Australia, the Rudd Government have committed to injecting $6.2 Billion into the Australian motor industry, which is a brave move. Admittedly the government does rake more than a little tax (try heaps) back through tax and GST on retail sales on new motor vehicles, luxury tax on prestige cars, petrol excise, I could go on! The whole point is they have a vested interest in keeping the industry afloat from an employment and also monetary point of view.
Holden and Ford could be the biggest losers as their respective head offices in Detroit slide deeper into a fiscal black hole, Holden may survive but don’t be too surprised to see a new corporate identity control it from Asia rather than the USA.
Ford are already making noises that the new Falcon will be front wheel drive and V6, which means it will be based on a Taurus or similar platform. The news here is, they will more than likely not build it in right hand drive form in Australia, they cannot justify the investment for the low volume that the Falcon now generates! Future plans for the Ford factory at Broadmeadows included building the Focus but if memory serves, that is not due to happen until 2011, which may be too little, too late.
Looking strongest of all is Toyota, the Camry is still a strong seller, the Corolla, although imported is always at the top of the sales charts. They have a range of hybrids already available in Japan and they have massive cash reserves.
No matter what happens the changes will be profound, for instance will Australian car buyers consider a Holden Commodore, still be a Holden, if built in China?
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