Amazing development: truth told about Aus auto industry

[Spinner77]

Excellent interview this morning on ABC with John Mellor, publisher of GoAuto.

Among the points he makes are:

• The impact of the global financial crisis and the high dollar deserve to be recognised. Before the GFC we were making 450,000 vehicles/year.

• Even today Toyota is exporting more cars that it makes in Melbourne than it sells in Australia.

• Subsidies to the industry in Australia are tiny: about $17 per head. In the US it's $250; in Sweden $300.

• The structure of auto industry means it is a good means for creating wealth in a manufacturing country.

• A huge problem is the Free Trade Racket (my term, not Mellor's). Japan keeps imports of vehicles to about 7 per cent of the market; Korea 5 per cent.

• We have a free-trade agreement with Thailand, but Ford has only just managed to get the Territory on sale there, thanks to the regulatory hurdles - and it costs the equivalent there of $100,000, vs. $60,000 in Aus.

Mellor, rightly in my view, gives our trade negotiators a big serve for the shocking job they have done.

Here is the audio of the interview:

http://mpegmedia.abc.net.au/rn/podca...30412_0814.mp3

[ebxr8240]

ALL Gov's the last 30 years has been leading to this..
The gfc in northern hemisphere means cars are almost dumped here..
With no or VERY little restrictions...
Jack Nazer said much the same...
An ex Ford man..

[Bluehoon]

One has to ask why we dropped and flooded our markets and they protect theirs. Surely...

[Wretched]

What cars are manufactured in Germany, Japan, Sweden, etc that allows them to have the higher subsidies? How many are manufactured?

My concern is if we are going down the path of restricting imports then what choice does the consumer have? A sedan, a ute or a SUV and only available from 2 main brands with another brand offering a sedan.

[turbodewd]

Originally Posted by Wretched

What cars are manufactured in Germany, Japan, Sweden, etc that allows them to have the higher subsidies? How many are manufactured?

My concern is if we are going down the path of restricting imports then what choice does the consumer have? A sedan, a ute or a SUV and only available from 2 main brands with another brand offering a sedan.

Noones talkin blanket trade restrictions.

I would simply like government to buy Australian almost exclusively. As Ive mentioned before Ive seen Klugers sporting ACT government plates. You cannot justify this because the Territory is a comparable vehicle at a comparable price. Hell, you could still buy some Klugers to keep Ford AU honest, but otherwise buy local.

Same deal for the Cruze. I think its silly to see Hyundais owned/leased by the ACT govt.

[mik]

Originally Posted by Wretched

What cars are manufactured in Germany, Japan, Sweden, etc that allows them to have the higher subsidies? How many are manufactured?

My concern is if we are going down the path of restricting imports then what choice does the consumer have? A sedan, a ute or a SUV and only available from 2 main brands with another brand offering a sedan.

No one is talking blanket ban mate, all we want is a fair go for our own industries/for Australia, the scales are way in importers favour and everyone knows it.

[tezxr8man]

Originally Posted by Wretched

What cars are manufactured in Germany, Japan, Sweden, etc that allows them to have the higher subsidies? How many are manufactured?

My concern is if we are going down the path of restricting imports then what choice does the consumer have? A sedan, a ute or a SUV and only available from 2 main brands with another brand offering a sedan.

if imports were restricted it wouldn't limit choice too much, even at 50% there is still 500,000 cars imported.

[ebxr8240]

Its a balancing thing .. How much tax are you prepared to pay for people on the dole
or supporting the car industry ?? Why should people buying Aust cars pay tax to support the car industry when others buy overseas pay the same ??
This should start at local gov buying Aust made cars..
Yes they should make cars we want ! They have been slow but then again we are a small populated nation..

[bobthebilda]

Originally Posted by Spinner77

Excellent interview this morning on ABC with John Mellor, publisher of GoAuto.

http://mpegmedia.abc.net.au/rn/podca...30412_0814.mp3

Is this the same Go auto, that when you click on its website, every page has an advertisement for a Mazda car?

[mik]

We have known fair trade is not fair for a long time, half the problem is people are thick, they think we are just getting shafted on cars, the other half is our string pullers have allowed this to remain unchecked without alteration for so long,
we are getting shafted on other things as well, take note of steel companies going bust, alcoa on gov drip system to stay afloat much like the cars.

[turbodewd]

What gets me is people who go around spouting about free trade or consumer choice.

Business is war and other countries dont play by the Marquess of Queensberry rules (very proper boxing rules).

We should pick n choose which sectors we choose to play fair in. The auto industry is lucrative and strategically important. We should be playing smart and hard!

[Spinner77]

No one is talking blanket ban mate, all we want is a fair go for our own industries/for Australia,

+!

This a very important point. We are not trying to ban imports. But those who want to see the end of the industry here will attempt to frame the debate that way.

I am not suggesting that this is the case with the OP. But just watch out for it from elsewhere. Like the Federal Treasury.

[Wretched]

ok, fine so with all the support the local industry gets what are local manufacturers going to do about increasing their market share? the current situation is simply not sustainable.
They should be looking at exporting, increasing product range, etc.
Want to get the public buying your product offer something they want.

[mik]

Originally Posted by Wretched

ok, fine so with all the support the local industry gets what are local manufacturers going to do about increasing their market share? the current situation is simply not sustainable.
They should be looking at exporting, increasing product range, etc.
Want to get the public buying your product offer something they want.

all the support? 2 hamburgers?

[Joe5619]

I'm actually glad there is allot of debate about this topic in main stream media & they are finally starting to get a balanced view of the problems facing the car industry. The media don’t seem to be attacking the industry in the same way as they have for the last 12-24 months. The car media are also finally trying to talk it up & highlight the problems. I think the penny has dropped for car media reporters too. Let’s hope something good comes from all this & some top level changes are made by the government that help turn things around

[Gobes32]

It's time the government asked other countries, mainly Thailand, why are you making our exports so difficult? Makes you wonder how the world would react if we started rationing our iron ore to China. Try building your millions of cars then.........

[aussie muscle]

Originally Posted by Gobes32

It's time the government asked other countries, mainly Thailand, why are you making our exports so difficult? Makes you wonder how the world would react if we started rationing our iron ore to China. Try building your millions of cars then.........

It shouldn't be that hard to push Thailand into line now that they are dependent on trade with us. As for your China suggestion, I'm sure there's enough other countries that would step up to fill the void. I'd like to see it done. they've quietly forgotten that China is a communist, restrictive and closed country. what happened to all that rhetoric about forcing them to change their ways? (only when it doesn't get in the way of making money).

[Spinner77]

Makes you wonder how the world would react if we started rationing our iron ore to China.

Here's another idea. When the next time arises where we need a big economic stimulus, consider an alternative to stuffing roofs with more pink batts.

Buy up the entire Australian rice production. Dump the lot on Malaysia, a key export market for Thailand.

Watch the reaction in Bangkok.

[Bossxr8]

Why is our government being so damn stubborn about this, by refusing to do something about the problem. When Thailand absolutely shafts us on tariffs why does our government just let it happen without barely a whimper, not to mention all the other countries. Who cares about free trade when all you do is get screwed over.

Its pathetic.

[Spinner77]

When Thailand absolutely shafts us on tariffs why does our government just let it happen without barely a whimper?

This is an excellent title for a talk the local Federal Member in Geelong could be invited to give the guys on the factory floor.

I see he's got some time on his hands these days. I imagine he would welcome the opportunity to explain to Ford workers how they are better off as a result of the Free Trade agreement with Thailand, especially as an election is looming:

http://en.wikipedia.org/wiki/Richard_Marles

[Gobes32]

Originally Posted by Spinner77

This is an excellent title for a talk the local Federal Member in Geelong could be invited to give the guys on the factory floor.

I see he's got some time on his hands these days. I imagine he would welcome the opportunity to explain to Ford workers how they are better off as a result of the Free Trade agreement with Thailand, especially as an election is looming:

http://en.wikipedia.org/wiki/Richard_Marles

The man is a waste of airspace, shafted the previous member, Gavan O'Connor, and is a Gillard sympathizer. He also sits in one of the safest seats in Australia. He won't do anything because he doesn't have to to be re-elected.