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HI5003 - Economics for Business- Car Manufacturing Industry in Australia

   

Added on  2020-03-04

9 Pages1338 Words281 Views
ECONOMICS FOR BUSINESS Topic - Car Manufacturing Industry in Australia (Managed Decline Policy)
HI5003 - Economics for Business- Car Manufacturing Industry in Australia_1
Economics for BusinessTable of ContentsIntroduction......................................................................................................................................3Discussion........................................................................................................................................3Conclusion.......................................................................................................................................6References........................................................................................................................................81
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Economics for BusinessIntroduction Car manufacturing industry is facing several issues to sustain in Australian market.Appreciation in the Australian currency has had adverse effect on the business environment ofcar manufacturing in the country. This would lead to increase the import of cars, which directlyaffects the in-house manufacturing units. The Federal Government has decided to revoke thefunding and support to car manufacturing units. Hence, the major car manufacturers havedecided to terminate their manufacturing operations in a phased manner (Jericho, 2015). Thisresults in the lack of interest of the main manufacturers like General Motors, Ford etc. Even,General Motors has declared that they will stop producing the Holden model car in Australia by2017 (Toner & Stilwell, 2014).Discussion The major reason behind this disturbing trend in the car manufacturing has arisen due tothe high manufacturing cost. The main element for this high cost is high labour cost in Australia.Hence, the customers are more comfortable to import cars at lower rate from various tradepartners. Car manufacturing industry is considered to be a major industry from the economicpoint of view considering the employment it generates. The remedy for this issue directlydepends on the steps adopted by the Australian government, which can enhance the level ofcompetitiveness of the car manufacturing and other manufacturing units in the country (Jericho,2015).2
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