Australian Automobile Industry Crisis

This assignment investigates the factors contributing to the decline of Australia's automobile industry. Students are asked to evaluate the impact of government policies, labor shortages, and high production costs on local manufacturers. The questionnaire explores potential solutions, including adapting policies from developing countries, focusing on electric vehicle manufacturing, and attracting foreign investment. It also considers the future prospects for R&D hubs and subsidiary industries within Australia's automotive sector.

Running head: BUSINESS RESEARCH METHODS
Decline of Australian automotive industry
Name of the student
Name of the university
Author Note:

2
BUSINESS RESEARCH METHODS
Table of Contents
Title..................................................................................................................................................4
Introduction......................................................................................................................................4
Problem Statement...........................................................................................................................4
Purpose of Research........................................................................................................................6
Prior Work.......................................................................................................................................7
Figure 1- Job Loss Statistics............................................................................................................8
Figure 2- Vehicle Manufacturing and PMV Activities...................................................................9
Gaps in Prior Work........................................................................................................................10
Hypothesis.....................................................................................................................................11
Figure 3- Car Sales in Years..........................................................................................................12
Figure 4- Hourly Labor Cost in Automobile Industries................................................................13
Figure 5- New Car Production.......................................................................................................13
Figure 6- Imported and local cars statistics...................................................................................14
Figure No 7- Car Production Statistics..........................................................................................14
Probable Approach........................................................................................................................15
Type of Approach..........................................................................................................................15
Study..............................................................................................................................................16
Sample Population.........................................................................................................................16

3
BUSINESS RESEARCH METHODS
Sampling Methods.........................................................................................................................16
Process of Study............................................................................................................................17
Place of Study................................................................................................................................17
Time of Study................................................................................................................................18
Value of the Study.........................................................................................................................18
Ethical Considerations...................................................................................................................19
Conclusions....................................................................................................................................19
References......................................................................................................................................20
Appendix........................................................................................................................................22
Questionnaire.................................................................................................................................22

4
BUSINESS RESEARCH METHODS
Title
Decline of Australian Automotive Industry
Introduction
Automotive Industry is a varied range of different organizations that are involved in
designing, manufacturing, promoting and the selling of automobiles. These companies provide a
great share of economy in the country. The combined automotive industry plays a pivotal role in
the development of the country. The main topic of the research is however limited to Australian
Automotive industry which is believed to be one of the best in the globe. Australia in the recent
past had a reputation for designing and producing of large sized commercial vehicles like cars,
trucks etc. But a crisis situation led to the drastic fall in the production of the cars. In the year
2009 the total production fell to around 1,75,000 units which was much lower than the earlier
years. The research will help the readers to get an idea about the different problems that have
crippled the industry since a long time and have led to the decline of the industry.
Problem Statement
As mentioned earlier the Automotive Industry of the island continent had a great
reputation in the past because of its ability to use its own raw materials like aluminum and steel
to produce quality goods that are exported to other countries. Though Automotive industry
remains to be largest source of employment providers and the largest industry of the island
nation it has been facing a crisis situation and is slowly becoming unproductive and losing out its
efficiency which used to be its largest strength (www.swinburne.edu.au). Some of the citizens of
Australia who graduated in the early 90’s or in the mid 90’s had no such difficulties in finding

5
BUSINESS RESEARCH METHODS
jobs as the Automobile industry opened up its doors to the to the professionals who were in
search of a job. The people were employed in different positions in the factories and the offices
of these companies. However as time passed by the Australian car manufacturing industry slowly
declined. Experts believe that in the coming few years the entire Automobile industry will be
rubbed out from the Australian industrial Scenario. Such a huge unemployment drive will drive
to a negative growth in the industry. The collapse of the automobile industry in Australia will
also spell a doom for the large number of subsidiary industries in the country that provides a
variety of subsidiary products for the industries. The main types of industries in this sector
include industries like tyre manufacturing, metal parts manufacturing and many other such other
industries.
Earlier studies have found out that car manufacturers provide transferable skills, training
to the employees and a variety of technical support for the subsidiary industries that provide
support to the main industries. The collapse of the mentioned in industry can be harmful for the
PSTS industry as it will create a vacuum in both the upstream and the downstream industries of
the country. Though the management of the major car manufacturers are assuring the stability of
their R&D centers in Australia but there is a fear that the total assurance does not stand its
ground as because R&D centers will always be close to the manufacturing facilities of a
company. The large scale import in the Australian car manufacturing sector will also disturb the
engineering expertise of the country and gradually the indigenous capability of the country will
take a back step (www.swinburne.edu.au).
Apart from the above mentioned problems there lies a serious problem of political
intervention in the automobile industry of the mentioned country. According to a research by
Jason Dowling, a leading journalist of Australia the car manufacturing sector of the country faces

6
BUSINESS RESEARCH METHODS
lots of problems due to the trade barriers, tariffs and a number of taxes. Another major problem
is the policies of the new Abott Government which is moving in a hurry to implement some big
changes in the following economic sector. The main aim of the new government is to find out the
perfect ways to bring a change in the future of the car manufacturing sector of Australia. The
new government has decided to not provide an earlier promised $500 million funds for the
revival of the industry and has in turn decided to concentrate on the large scale imports of cars.
The auditing of the automobile sector has been another main drawback for the industry
(www.adelaidenow.com.au).
Purpose of Research
The researcher has undertaken this research to find out both the important causes as well
as the subsidiary causes that have crippled the Australian Automobile sector (Barnes 2016).
Therefore the researcher has included some necessary elements in the research which are as
follows;
1. To find out the primary problems behind the loss of the Australian Automobile Industry
2. To find out the secondary causes that is equally important and plays a major role behind
the steady decline of the mentioned industry
3. Another major objective of the research is to determine the steady fall in the numbers of
the employees who are involved in the Australian Automobile Manufacturing
4. The reason behind the decreasing sales figure of the vehicles is also a sign of concern for
the industries which is another main topic discussed in the following research

7
BUSINESS RESEARCH METHODS
5. The determination of the immediate measures to counter the rapid degradation of the
most important sector of the economy of the island nation is another main objective of
the following research
Prior Work
The researcher has chosen one of the most fascinating topics that have been discussed
about the most in recent times. The researcher has completed the basics before undertaking the
research. The researcher while undertaking the research gained a great deal of idea about the
different automobile makers and their history of manufacturing process in Australia. Detailed
knowledge were gained about Ford Motors, General Motors Holden, Toyota, Mitsubishi and
many more such big and small automobile manufacturers. As mentioned earlier the works of the
earlier researchers who researched on the following topic were studied extensively which
resulted in gaining some necessary and key details regarding the Australian car Manufacturing
Industry. The research found out the details regarding the problems that led to the closure of
operations of companies like Mitsubishi and also the closure of the manufacturing units of
companies like Ford, Toyota and Holden (Gratton 2017).
Research by Swinburne University has highlighted that the car manufacturing industry
does not operate in isolation. The total output of the industries accounts to more than $30 billion.
Therefore the breakdown of the car manufacturing industry in Australia poses an adverse effect
on the viability on the supporting industries of the larger concerns (Samson and Gloet 2014). The
following industry provides services to different sectors like scientific engineering, computer
systems, designing, law and many other different types of system. The number of full time job
losses has increased on a yearly basis. As mentioned earlier this will have a huge impact on the

8
BUSINESS RESEARCH METHODS
employment sector of the country as the large scale unemployment will put a huge pressure on
the other industries (Stanwick Circelli and Lu 2015).
Figure 1- Job Loss Statistics
Source- (Gratton 2017)

9
BUSINESS RESEARCH METHODS
Figure 2- Vehicle Manufacturing and PMV Activities
Source- (Edmonds and Kennedy 2016)
A lot of measures have been taken by the Government of Australia to improve the current
state of the Australian Automobile Industry. Among the variety of measures taken by the
Government the most notable is the Automotive Transformation Scheme. It is a scheme adopted
by the Government of Australia in the year 2010 under which registered business will be
receiving quarterly cash payments to revive the industries. All the concerned industries will be
receiving around 50% of investment to carry out extensive research and development process
and will receive an allowance of 15% on plant and equipment. The following scheme has two
different stages on which the first stage will have an assistance of a whopping $1.5 billion from
the year 2011 to 2015 and another staggering amount of $1 billion from the year 2016 to 2020.

10
BUSINESS RESEARCH METHODS
The government has also assured an extra amount of $ 337 million of uncapped assistance in the
coming years. Apart from the above mentioned scheme the Government has also schemes like
The Green car Innovation Fund under which the automobile manufacturing plants will be aiming
to reduce the fuel consumption and the reduction in the emission of harmful gases in the
atmosphere by means of adopting the latest technologies (Leech and Onwuegbuzie 2015). The
fund also allows companies to stress on the importance of green technology and develop cars
that may run on electricity.
Gaps in Prior Work
The earlier researches have had a huge impact on the formulation of this particular
research. A number of new things were mentioned in this following research which was derived
from the earlier studies. Though there was the use of this different type of elements in the
research the omission of some important points about the topic was the reason behind the partial
success of the researches (Garner and Scott 2013). The researchers could have pointed out to the
statistical figures of the job losses and the quantitative elements of the research. Therefore the
attempt to make the research compact and flawless has failed. The researchers also failed to take
the reference of a number of different journal articles that contained various reports and facts on
the steady decline of the automobile industry in Australia. The research works could have also
been successful if the researchers could take some interviews of the officials or employees of the
mentioned company. The new researches on the following subject must take into consideration
and include the missing parts in their research to produce a much better and complete report
(Kratochwill 2013).

11
BUSINESS RESEARCH METHODS
Hypothesis
There are lots of different reasons behind the freezing of the Australian Automobile
industry. Some of them are;
1. The market of Australia is believed to be too small in size which forbids the industry to
fully utilize the economies of scale. Therefore in order to remain competitive and keep
their presence in the market the company has decided to use cheaper foreign products like
labor and industrial parts.
2. Problems include the demand for higher wages, shorter timings by the unions of the
industries.
3. There are also problems like the Government’s decision to lower the trade tariffs and
signing the free trade agreements which are making the imports much cheaper day by
day. Such types of aggressive measures by the new Government are not helping the cause
of the organizations and are thus making the organizations.
4. Developing countries like India, China and Brazil have formulated policies that are much
more industry friendlier for the manufacturing industries. The lower cost of the supplier
chain and logistics in these countries have prompted the industries to shift their
manufacturing units in these countries.

12
BUSINESS RESEARCH METHODS
Automobile Production in Australia
Figure 3- Car Sales in Years
Source- (Kratochwill 2013)

13
BUSINESS RESEARCH METHODS
Figure 4- Hourly Labor Cost in Automobile Industries
Source- (Kazdin 2016)
Figure 5- New Car Production
Source- (Pc.gov.au)

14
BUSINESS RESEARCH METHODS
Figure 6- Imported and local cars statistics
Source: (Aghion et al. 2016)
Figure No 7- Car Production Statistics
Source- (Acaresearch.com.au)

15
BUSINESS RESEARCH METHODS
Probable Approach
Type of Approach
Quantitative research Methods are used to determine the statistical measurements,
objective measurements and numerical analysis of the information that are collected through the
polls, questionnaires and surveys. Whereas Qualitative Research methods used by the researcher
has included interviews of the research participants. The quantitative research methodology has
some of the following characteristics;
1. The information about the Australian automobile industry has been collected by using
structured research instruments
2. All the different aspects of the information have been designed efficiently and in a careful
way before the collection of the information (Acaresearch.com.au)
3. The information has been arranged in the form of statistics, data, tables, charts and
figures. The different statistics has been taken from the company journals and annual
reports and also the annual reports of the governments
4. The project prepared can be used to generalize the concepts more widely and predict the
future of the automobile industry of Australia
5. The use of the larger sample sizes has been of great help to provide a flawless and
compact task (Acaresearch.com.au)
The Qualitative Research has been completed by the researcher by means of a strict
observation of every minute detail of the company and the main problems that have acted as a
throne to the prosperous industrial sector of the country. Interviewing the participants of the
research and conduction of the survey helped in the formulation of the research.

16
BUSINESS RESEARCH METHODS
Study
The research used references from a varied range of journals and articles related to the
Automobile industry of the mentioned country (Savin and Major 2013). The investigator also
took help of some earlier researches on the same context. However the key information about the
impending problem was received from the industry insiders and some selected people from the
management of the industries.
Sample Population
Sample population refers to the people who were consulted by the researcher and
included in the interview process. These people were provided with the questionnaires and were
asked a number of different questions on the following topic. The induction of these people in
the research helped to make the research more compact in nature (Zikmund et al. 2013). The
sampling population consisted mainly of the different employees of the automobile
manufacturing companies as well as some management officials of the company. The feedback
of every different persons of the sample population was considered in the research for making
the research one of the best in the business.
Sampling Methods
The target group of sample might be broad or might consist of a smaller group depending
on the nature of the research. The following research is no doubt a vast research which has
various dimensions. Therefore the researcher had to consider a large but precise sample
population who are best fit for the sample population. The researcher has also made it sure to
make the participants representative which will help the research to be flawless. There are a
number of varieties of sampling methods that can be used in the research (Aghion et al. 2016).

17
BUSINESS RESEARCH METHODS
The researcher has chosen the Stratified Sampling Method for conducting the following research.
In the following method he had selected a number of employees of the different automobile
companies that makes up the target population and has worked out on the proportions that are
considered. The list is based on the variables like gender, age group, work type, work divisions
and many more as such. These elements have a certain amount of impact on the research topic.
In the following type of sampling method the researcher had worked out on the relative
percentage of each group at the companies. Some of them were Human Resource, Operations,
Management and Legal departments of the companies which were included in the sample.
Process of Study
The researcher has followed a systematic process that is objective on one hand and on the
other has provided information that has multiple dimensions which provides the readers with
valuable inputs of the Australian Automobile Sector and its present state of decline. The process
started with identification of the problem and ended with the analysis of the information. There
are many more steps in between the two which includes reviewing the literature, clarifying the
main problem of the research and some other important elements like defining the terms and
contents that are involved in the research (Clibborn Lansbury and Wright 2016).
Place of Study
The research has been carried out totally in Australia as because the main topic of the
research is the Automobile sector of Australia. The researcher carried out detailed analysis in the
areas around Queensland and New South Wales which is the main hub of the Automobile4
industries.

18
BUSINESS RESEARCH METHODS
Time of Study
The project was undertaken by the researcher just a few months back and he conducted
the research in between 11 AM to 3 PM. He selected the lunch time to complete the interview
process. The consent of all the concerned parties were taken before the beginning of the
interactions and the research.
Value of the Study
The following project no doubt carries immense value because of the topic on which it is
based. The automotive industry of the island nation of Australia is a topic which has been
researched on a thousand times but the recent change in the automobile sector of the company
has been a topic worth choosing as because very few works were earlier carried out on the same.
The once prospering Australian Automobile manufacturing industry lies on the brink of
shambles as the main companies like Ford, Holden and Mitsubishi have announced to shut down
their production units and shift to more greener pastures of South East Asia and China
(Acaresearch.com.au). The closure of such industries will lead to the automatic shutdown of
other manufacturing and subsidiary industries. As per some reports and surveys by the Australian
Government and other private institutions an economic crisis is on the way which will occur as a
result of the freezing of quality investments in the R&D and manufacturing sector. However the
recent drastic measures of the Government of Australia have been effective to reform the
Automobile industry and bring back past glories of the country in the following sector. The
transformation phase will however be critical to the success of the mentioned sector of the
country.

19
BUSINESS RESEARCH METHODS
Ethical Considerations
Every Research irrespective of its value must follow some ethical methods. The
investigator in this particular case has also ethically managed his work.
1. He has obtained the consent of the concerned people and the authorities before starting
his research
2. He has ensured the safety of the research participants
3. He has ensured the privacy and confidentiality of the research participants
4. He has also provided the exact feedback of the participants in the research
Conclusions
The research has been successful to meet its overall aims and objectives. The research
has been able to make the use of different related elements that provides all the necessary details
regarding the topic. After a complete analysis of the report the readers would be able to
determine the problems involved in the declining of the Automobile industry of Australia and the
reforms that have been initiated to change the current scenario. The readers will also be able to
view the different statistics and reports on the selected areas of discussion.

20
BUSINESS RESEARCH METHODS
References
"Collapse Of Australian Car Manufacturing Will Harm R&D In Other Sectors: Study." The
Conversation. N.p., 2017. Web. 15 Oct. 2017.
Aghion, P., Dechezleprêtre, A., Hemous, D., Martin, R. and Van Reenen, J., 2016. Carbon taxes,
path dependency, and directed technical change: Evidence from the auto industry. Journal of
Political Economy, 124(1), pp.1-51.
Barbaro, B., Spoehr, J. and National Institute of Economic and Industry Research (Australia),
2014. Closing the motor vehicle industry: The impact on Australia. Australian Workplace
Innovation and Social Research Centre (WISeR) & the National Institute of Economic &
Industry Research (NIEIR), The University of Adelaide.
Barnes, T., 2016. Transition to where? Thinking through transitional policies for Victoria’s
automotive manufacturing industry.
Beer, A., 2015. Structural adjustment programmes and regional development in Australia. Local
Economy, 30(1), pp.21-40.
Clibborn, S., Lansbury, R.D. and Wright, C.F., 2016. Who Killed the Australian Automotive
Industry: The Employers, Government or Trade Unions?. Economic Papers: A journal of applied
economics and policy, 35(1), pp.2-15.
Edmonds, W.A. and Kennedy, T.D., 2016. An Applied Guide to Research Designs: Quantitative,
Qualitative, and Mixed Methods. Sage Publications.

21
BUSINESS RESEARCH METHODS
Garner, R. and Scott, G.M., 2013. Doing qualitative research: designs, methods, and techniques.
Pearson Education.
Gratton, Ken. "REVIEW: What Happened To The Car Industry? -
Motoring.Com.Au." motoring.com.au. N.p., 2017. Web. 15 Oct. 2017.
Kazdin, A.E., 2016. Single-case experimental research designs.
Kratochwill, T.R. ed., 2013. Single subject research: Strategies for evaluating change. Academic
Press.
Leech, N.L. and Onwuegbuzie, A.J., 2015. A Typology of Mixed Methods Research Designs
[Book Chapter].
Pc.gov.au. N.p., 2017. Web. 16 Oct. 2017.
Samson, D. and Gloet, M., 2014. Innovation capability in Australian manufacturing
organisations: an exploratory study. International Journal of Production Research, 52(21),
pp.6448-6466.
Savin-Baden, M. and Major, C.H., 2013. Qualitative research: The essential guide to theory and
practice. Routledge.
Stanwick, J., Circelli, M. and Lu, T., 2015. The End of Car Manufacturing in Australia: What Is
the Role of Training?. National Centre for Vocational Education Research (NCVER).
Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods.
Cengage Learning.

22
BUSINESS RESEARCH METHODS
Appendix
Questionnaire
1. Are the Government policies or the lack of skilled labor and high cost forcing the
automobile companies to shut down their business in Australia?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
2. Can the limitations of the present state be sorted out in the near future?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
3. Is Australia a global Automobile hub anymore?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral

23
BUSINESS RESEARCH METHODS
4. Can the policies adapted by developing countries be implemented in Australia?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
5. Has the government of Australia taken adequate steps to recover the industry?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
6. Is there any possibility of old companies like Ford and Mitsubishi to continue with
their manufacturing plants?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
7. Can the subsidiary industries survive once the main industries lose its value?
A. Agree
B. Strongly Agree

24
BUSINESS RESEARCH METHODS
C. Disagree
D. Strongly Disagree
E. Neutral
8. Is the reform of the electric cars a threat to the traditional automobile industry of
Australia?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
9. Do you think that the Automobile companies will continue operating its R&D Hubs
in Australia still after the withdraw of the manufacturing plants from the country.
10. Agree
11. Strongly Agree
12. Disagree
13. Strongly Disagree
14. Neutral
10. Does the fall in the sale of the of Automobiles the only reason behind the crisis of the
automobile industry of Australia.
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree

25
BUSINESS RESEARCH METHODS
E. Neutral
11. Can Australia transform itself into an electric vehicle manufacturing hub in the
coming years?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
12. According to you which among the following can be the best possible solution for
the industry.
1. Obliging by the policies of the government
2. Aggressive marketing and Promotion
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
13. Can the local car manufacturers overturn the current crisis of the Automobile
sector of Australia?
A. Agree
B. Strongly Agree

26
BUSINESS RESEARCH METHODS
C. Disagree
D. Strongly Disagree
E. Neutral
14. Will the Government of Australia invite European Car Manufacturers like
Volkswagen and Porsche to invest in the country and utilize the resources of the
country?
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral
15. Can establishment of world class training centers help in the growth of the car
manufacturing industry.
A. Agree
B. Strongly Agree
C. Disagree
D. Strongly Disagree
E. Neutral

27
BUSINESS RESEARCH METHODS