What are the factors that stand behind this decade-long decline in cars manufacturing and marketing in Australia? The high fuel prices drove up demand for ultra fuel-efficient cars in a small economy like that of Australia, but the dynamics of this can not be alone responsible for closing entirely the industry. So what are the main reasons? and is such a scenario plausible to happen in other G20 countries?
car manufacturing and market are decreasing in all the industrialized countries, in particular in Europe and in USA. At this moment, the automotive sector is the one that suffer the most the global crisis. In particular, GM, FCA and other large scale car manufacturers are reducing its production. In Italy we are suffering the same scenario: a significant sells reduction and always more factories closed.
Interesting .... Here in Brazil, we have increased production and sales of automobiles in recent years. It was a government strategy to overcome the global crisis of 2009. In practice, in the streets, as we have very little investment in infrastructure, we live in something that looks like hell!
I think high cost of production in Australian is the primary reason for the growing exodus of the local vehicle manufacturers. Additionally, high household debt levels and the ongoing weakness Australian dollars are sure to increase the prices of imported vehicles for Australian consumers.
-Not feasible place to manufacture due to costly resources
-Comparatively[global] less support of Australian government policies due to week economical growth and syncing AUD.
-Nearby countries such as India and China has more competitive advantages in terms of cost effectiveness, resource availability, huge customer base, and effective supply chain location in geographical aspect.
Dear Faysal F. Eliyan,
Perhaps the solution would be to develop electromobility if rising fuel prices are the main factor in the decline in car sales. I invite you to the discussion Best wishes
- Badges
- Science topic
- Similar topics
- Econ
- Manufacturing
- Industry