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Toyota gone
Ferrett62
7 years ago
I see on the news Toyota have closed manufacturing leaving over 2000 people out of work, only Holden to go now. I know a lot of people will say the high cost of wages is to blame but if you work 40 plus hours a week at $20 ph it's still not easy to live on whats left after tax. With the loss of local car building Toyota no longer needs to manufacture here, the Australian government will be pushed by foreign manufacturerers to lower or remove any charges imposed on imported cars but I still wonder how long before prices start to rise after we have a total dependants and no option but to buy whatever they want to sell us. Australian design rules mean changes have to be made to some cars to be soldd here but with no competition manufacturers may just decide it's not worth modifying some new vehicles just for a small market so they just won't send them here, there will not be testing for our harsh conditions and crap roads so will that mean less reliability. They have achieved what they have been working towards in destroying the competition here with cheap cars possibly with the help of subsidies from their own government to push prices down and I bet they haven't finished yet.
The western world is in decline now led by greed in chasing bigger profits by exploiting poor countries so they could pay peanuts to make their goods or so they thought, what they actually did was hnd billions of dollars to clever people who will eventually control all manufacturing and be able to hold us to ransom just for the basics.
Sorry but had to have a rant as just another part of who we are turns into more dependence on foreign products and the sad loss of local jobs.
Ferrett62
7 years ago
Good to know.
Broke
7 years ago
Hi Ferret,
This sums it all up. http://www.adelaidenow.com.au/technology/why-australian-car-manufacturing-died-and-what-it-means-for-our-motoring-future/news-story/0428dc235d1b44639459959f5a3bbf9b
Maybe time to upgrade my old Ford Falcon to a newer Ford Falcon before they go up in price.
Nutty
7 years ago
Pretty much spot on Ferret. Sydney has no oil refinery FFS. 5-6 weeks of fuel for all of NSW if a war breaks out. NSW has no aluminium smelter, only two base-load power stations, no working country rail infrastructure, no vehicle manufacturing, one clogged up airport, no copper smelter, no oil refinery, etc.
Tourism and educational/medical services are our big earners and they're destroying both of those at a fair rate. Good farming land is either foreign-owned or fracked to destruction.
This house of cards can't stand up much longer. The western worlds' wealth was always going to even out, but we're sure as hell speeding up the process.
Ferrett62
7 years ago
There are a lot of reasons not just one but all levels need to take their share of the blame, I hate when people blame the employee only for the high cost of Australian made goods and while it is not completely wrong it is only a small part. Our growing culture of entitlements over the years has raised the cost of doing business, years ago unions formed to bargain on behalf of workers for safe workplaces and fair wages but then abused that by demanding more and more and shutting down anyone who didn't comply. Recent reports would indicate this still goes on in some industries although the reports are mostly coming from our current anti union government there is some truth to this.
Government must take responsibility for their share rather than lay blame on workers alone, they pushed the cost up through over regulation and taxation, things like payroll tax WTF never understood that. Legislation that forces the cost of employees beond the cost of wages alone, and the program of privatization they said would lower costs but has failed because of the additional cost of shareholder returns plus the loss of income tax from cutting the workforce.
I don't totally blame companies for looking to less regulated countries to save costs but shifting investment from Australia starts a downhill spiral that slows spending and makes this country lless profitable to deal in. While the goods may be cheaper the cost to this country outweighs the often short term benefit to the company, because we no longer manufacture to export and import everything we now have nothing left but to sell the country itself and would not be surprised if countries like china are using trade agreements to push government to allow the sale of farms, resources and port facilities.
Lets face it Holden and Ford were never going to survive only producing one vehicle with more and more imported parts with the rest either fully imported whole or just assembled here to avoid tariffs and claim to be Australia made. With investment a few years ago in designing, developing a diversity of vehicles like japan did they might have become more self sustaining company but getting the people with the money to invest in Australia is almost impossible despite many of them making that money here.
I started thinking about this after reading articles regarding Harley's laging sales and problems attracting younger buyers, they are heading a similar direction with less local manufacturing and more foreign parts. They need to be more diverse and develop different styles of bikes alongside their current bikes not replacing what they have now, purist will complain but if they want the company to survive they will just have to live with it.
GeeBee
7 years ago
I did a little stint at AMI Toyota in Port Melbourne in the early 70s where we built Toyotas but also assembled Rambler Hornets. Not sure what happened to the Ramblers !
JFE
7 years ago
Just drove a 2017 Holden SV6 for a few days while on holidays. Bloody nice car and economy out of its six was circa 10/100, mainly in the city. I reckon a new’ish second hand one circa $30,000 (plenty around) would be good value if ya did mainly Highway km’s, especially if you can snag one with Holden’s seven year warranty. Great car, though I get why they were phased out when you look at the top 10 cars sold in Oz chart: Ford Ranger just cracked number 1 spot.
I’m in the market for a new car next year, just haven’t decided whether to go for a more road focus or 4x4.
Ferrett62
7 years ago
I was just bored and reading up on things to keep an eye on, and that led to lots of articles on harley company then to where they source parts, by coincidence I saw the news on toyota closing. Similarities between our failed car industries and harley being the rising use of imported parts ( some reports as high as 65% ) resulting in things like bearing failures and wiring problems being reported. I know if you start reading forums about issues with harleys you will start thinking we are all just waiting for our bikes to explode but when you think percentages the reality is not that bad but it is still there.
The advantage harley have is the worldwide market and brand loyalty to the brand that Australian car makers could have only dreamed of, and that may have saved or at least delayed the inevitable but they still have a lot of the same problems. Their wages are not as far of ours these days and from what I have read also include health benefits for full time employees and use of a lot of casual and seasonal workers that would result in a loss of experienced workers and higher chance of assembly issues. With the Japanese holding prices down to drive their manufacturing to collapse and indian offering Japanese style engines with old styles and a heritage name they could be heading the same way. Wonder if we could offer incentives to harley to move to one of our old car factories, we could all get jobs and build our own bikes.
mick44
7 years ago
It was inevitable when Australian governments starting legislating to move manufacturing offshore and i will tell you how stupid its getting.
On the ABC yesterdy, an Ug boot manufacturer in Melbourne is struggling to stay in business. The Chinese are importing Chinese made ugg boots into a warehouse, cutting off the made in China tags, placing cardboard tags on them that have Aboriginal art pics and coloring on the tags to make it look like there made in Australia. The chinks are then sending that warehouse full off ug boots back to China to sell in their market with their local chinks thinking their all Australian made. These Chinese made ug boots are not even made out of sheep skin and the chink buyers in China dont realize there getting ripped off. Big time.
Thing is, that Aussie ug boot manufacturer said if the Australian government stopped the Chinese doing that, he would be able to employ hundreds of staff as there is a big demand for Aussie ug boots in China.
An the bastard Australian government wont stop the Chinese importers pulling that scam. Free trade, how good is that working out for us right wingers?
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