Electrolux is still in South Australia afaik, but the NSW units closed or are closing as you say.
Electrolux is still in South Australia afaik, but the NSW units closed or are closing as you say.
i have a 2012 commodore and a 2012 colarado and 2 mit lancers 2003 models.the colarado is made in thailand .
That maybe so, especially when viewed with the rising cost of sourcing locally produced componentry after Ford bailed due to the local supplier economies of scale in their own operations? So tell us James why then did all three car makers pull the pin almost simultaneously? When "Adam" was around there was no FTA's in place stop import tariffs and trade barriers protecting our primary industry, so yeah things were much much better then and there was strong growth in jobs and the economy.Originally Posted by wbute
The perfect storm I was referring to was the fact that as our economy weathered the GFC quite well so it became an attractive dumping ground for cheap to produce vehicle manufacturers all clamouring for the high (in relation to the $US)Australian dollar. That in itself didn't kill our industry, but add to that import restrictions reduced to nothing over time, strongly subsidised (by their own governments) imports, a high standard of living (strewth, look at the real cost of housing where the work is...) placing upward pressure upon wages and what else do you need? This situation took a couple of decades to produce but each contributing factor brought the inevitable (without government assistance) closer.
We seem to be heading back towards a situation we were in after the Depression and before WW2, that is we import most things. If you have a look at other economies that have emerged stronger than ever asfter the GFC (such as Germany) you'll note that they, for the most part during the depths of the GFC built underlying strength into their currencies by reducing very high wages, keeping employment levels stable and preparing for when the rest of the world kicked off again. Watch that space as far as manufacturing goes...
Time Magazine article - Old World Tiger, How Germany Became the China of Europe Well worth a read as to what could have really been achieved here in Australia if we had a government with enough vision and old fashioned intestinal fortitude to see it through.
How Germany can save the Euro
Disagree all you like. There are other contributing factors to it all for sure, but they were the main ingredients that caused the scenario I put forward.
Australian Disease has entered the terminal phase - ABC News
Last edited by Taily; 12-02-2014 at 12:28 AM.
Nunc est bibendum...
Bought my first brand new car in 06 ve ss still got it not worth trading so my boy will get it when he has a full licence, had a demo vy sv8 before that ,also have a 97 diesel rodeo then comes a long line of projects , a hx sedan on a rotisserie , a hz tonner in panel shop and a line up of qs to wb and a few fb/ ek utes and a van also a few rodeos for parts it's starting to need a few lol
No perfect storm. Those companies all left for cheaper wages. Unless we work for $4 an hour they won't come back.
Time and the ABC ......
Germany subsides BMW to the hilt. They would not build cars either if it wasn't the case. Germany was 50% a communist country until 1989.
They all pulled out after Ford playing follow the leader. They still want to sell cars here. They took the opportunity to spread the limit the bad feeling.
The reason everything is expensive in Australia is because of the never ending cycle of wage increase followed by price rises to pay for it. Somewhere along the line the bubble will burst.
Australia has become fat and very lazy. We won't work anymore. We want paid time off for everything and shorter hours and huge wages for basically unskilled work. In the Utopian world this is great. In the real world it doesn't work. Government can't protect us all from the reality of living beyond our means. It's only our own money they have to spend after all.
Interesting tidbit from GM.
General Motors, the target of sniping over new CEO Mary Barra's pay, disclosed earlier than usual that her compensation this year will be $14.4 million — but just $1.6 million as a direct salary.
Not a bad short and long term pay packet.
So she's going to have to struggle through!
Im in the marine constuction industry where i come into contact with contractors from overseas. I can tell you i make triple what most of these guys make. How long is it going to be before we outsource my job. Don't get me wrong ive been in a union all of my working life, but where is the line between Australian jobs or cheaper overseas contractors. Tony( buggie smuggler) Abbot looks like he wants to go with the socialist state or even a dictatorship. Not a major fan of unions because of what they did in the 90's but what other avenue is there.
There's some interesting comment here, and I realise that our community at mysandman.com gains much strength through being non-partisan. Even during the recent mammoth Federal election, I saw no party biased political comment on this site, and I reflected during that time how well done that was of all members.
It seems to me however, Australia is potentially entering a phase of dividedness framed by the idea of economic rationality against the accepted status quo, and the unexplained benefits of a future globalised economic exsistance. It would of course, be silly to get sucked in to that.
Reading through the thread, great points are made, but in my opinion, the truth is that if we had kept tariffs in, we would still have a car industry. If the government, right now, set car import tariffs at 25 percent on all vehicles that were not 50 percent manufactured in Australia, these companies would reverse their positions fairly swiftly. The business case would be different, it would end the "perfect storm" for instance. Even Ford would go 'ouch"!
It's still possible - just (I am not going to reveal my politics on this, atm, but really I don't need to, - it is fairly evident that the agenda of the federal government is to reduce wages in some award protected areas, whats the best way to break the MFSU? - Get rid of manufacturing.) Oh damn, I just did.
I also note that the big move to end tariffs in the auto industry came under the ALP - so I also acknowledge that. But what are they for? To open the country up PJK said, but yeah ok... um maybe time to stop that for a bit... I have to ask myself what the disaster will be if we simply decide to protect our manufacturing industry, and what the benefit is if we dont?
BTW. I note the facebook site doesn't seem to be accessible easily, I'll try that again, please excuse my delay.
I have currently been really busy trying to inform those from the non-engineering parts of our society why engineering and manufacturing both cooks their toast nicely and doesn't electrocute them at the same time.
The resistance from economic rationalists (friends, acquaintances, or otherwise) to date, is refreshingly, although perhaps also endearingly startling. (LOL!!)
Last edited by SLR_dave; 13-02-2014 at 06:55 AM. Reason: grammar
Tariffs did work but we had about 1/5 the choice when it came to purchasing products. Take for example how easy it is to import US muscle cars and parts now compared to 20 years ago.
Australia's one strength on world markets lies on exporting agricultural and basic resources. We have never been able to compete with manufactured goods. Freight kills it when people can source the same product closer.
That's the black and white. Sadly it has laid is open to competing with countries with lower cost of production. So perhaps you can't have manufacturing and high wages and have a large consumer choice on the shelves in Australia anymore?
There is not much to achieve by blaming either side of politics. They are both totally run by economics. No thought for future growth these days. We are all the same though. We want it all now and can't put plans in place that will bear fruit in later years.
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