So the world turns
Firstly let me say I feel much better today, had a very long "im sick" sleep today and feel much better both lumps are quite small now.
Now this will be rambling, and I hope coherent, so your fore warned.
As most of you know cars and anything with a motor gets me excited, but more than that it has been a life long obsession. In Australia currently there are two car manufacturers Ford Australia and General Motors Holden. Both have been manufacturing cars here since the 1930's. And done quite well out of it as well.
But times have changed. Competition from overseas car companies from Korea, Japan, China, Indonesia, and to a smaller extent Europe and the USA, have hammered their old markets. Both car manufacturers post huge first 1/4 losses this year, and both are calling for government handouts to continue production here.
Now this is an interesting time, with both manufacturers not guaranteeing an Australian built family car past 2015. Why wont they commit. Firstly their parent companies don't have the funds to continue to hold up non profitable divisions. Probably more importantly the cars built here under the Falcon and Commodore badges don't seem to fit any export market, meaning that either company has a product line that has a very limited market that is under pressure.
Neither company can afford the R&D next time around, which would see the current models being the last carrying those model names. I hate the idea of government continuing to bail these guys out with hundreds of millions of dollars being thrown in to protect only a very limited number of jobs. I will put a condition here, I believe that the government should use those funds to retrain those who will loose their jobs rather than to prop up a dying part of our economy. The head of the automotive manufacturing peak body came out and said it would have very little effect on the parts suppliers and 90% of everything they make is exported anyway.
So is this the end of the Australian built and designed cars. It looks that way, but it may not be either, it might mean that both companies build a car type other than family saloon that will be more suited to the way the world wants to buy cars. If they do continue to manufacture here it will be on overseas designed chassis and drive trains. Using more of the concept car system.
No matter which way it goes things are going to change on the Australian car market, and that's a good thing either way. Having the ability to move with the times and encourage free trade will in the end benefit everyone. Continuing to build cars that are below international standard, that cost more than they should and more importantly that people no longer want, is stupid and a waste of global resources.
Whatever happens watch this space, as its going to be interesting.
Now this will be rambling, and I hope coherent, so your fore warned.
As most of you know cars and anything with a motor gets me excited, but more than that it has been a life long obsession. In Australia currently there are two car manufacturers Ford Australia and General Motors Holden. Both have been manufacturing cars here since the 1930's. And done quite well out of it as well.
But times have changed. Competition from overseas car companies from Korea, Japan, China, Indonesia, and to a smaller extent Europe and the USA, have hammered their old markets. Both car manufacturers post huge first 1/4 losses this year, and both are calling for government handouts to continue production here.
Now this is an interesting time, with both manufacturers not guaranteeing an Australian built family car past 2015. Why wont they commit. Firstly their parent companies don't have the funds to continue to hold up non profitable divisions. Probably more importantly the cars built here under the Falcon and Commodore badges don't seem to fit any export market, meaning that either company has a product line that has a very limited market that is under pressure.
Neither company can afford the R&D next time around, which would see the current models being the last carrying those model names. I hate the idea of government continuing to bail these guys out with hundreds of millions of dollars being thrown in to protect only a very limited number of jobs. I will put a condition here, I believe that the government should use those funds to retrain those who will loose their jobs rather than to prop up a dying part of our economy. The head of the automotive manufacturing peak body came out and said it would have very little effect on the parts suppliers and 90% of everything they make is exported anyway.
So is this the end of the Australian built and designed cars. It looks that way, but it may not be either, it might mean that both companies build a car type other than family saloon that will be more suited to the way the world wants to buy cars. If they do continue to manufacture here it will be on overseas designed chassis and drive trains. Using more of the concept car system.
No matter which way it goes things are going to change on the Australian car market, and that's a good thing either way. Having the ability to move with the times and encourage free trade will in the end benefit everyone. Continuing to build cars that are below international standard, that cost more than they should and more importantly that people no longer want, is stupid and a waste of global resources.
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