January 7, 2008
I see that the car industry in Australia is asking for more help, either in the form of an extension of the import tariff of 10% beyond 2010, or financial assistance to improve its productivity and innovation. Apparently, the car manufacturers (Mitsubishi, Toyota, Holden, Ford) are under pressure from a high dollar, changing consumers tastes in favour of fuel-efficient and hybrid models, increased imports and pressure from the parent companies to become more cost competitive.
Apparently, the viability of two of the four (Mitsubishi, Ford?) is threatened without more government assistance in some form. The Victorian and SA state government have called for a freeze on tariff cuts in 2010---the proposed reduction from 10% to 5% shouldn't go ahead.
Isn't the solution for a viable car manufacturing industry in Australia one of exporting more cars that consumers actually want--hybrid and flexible fuel cars? So where is the innovation to make a green car?
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Gary, it's not just the Australian car industry that is contracting. So is the US one.