This case study provides a strategic analysis of the Australian automotive industry, focusing on the decline and eventual withdrawal of major manufacturers like Holden, Ford and Toyota. It begins with a background to the study, highlighting the challenges faced by the industry, including a strong Australian dollar, high production costs, and a small domestic market. The analysis then employs Porter's Five Forces model to assess the competitive intensity within the industry, considering the threat of new entrants, bargaining power of suppliers and buyers, the threat of substitutes, and competitive rivalry. Furthermore, the study includes a competitor analysis, identifying key players and market trends. Finally, a situational impact analysis explores the political, economic, social, and technological effects of the auto industry's withdrawal, including job losses, impacts on related industries, and the broader implications for the Australian economy. The study concludes that car manufacturers may need to shift their R&D activities closer to manufacturing centers to ensure sustained development in a dynamic business environment.