Aussie cars gain local support

Australia’s car industry is seeing increased support for locally manufactured cars.

An Essential Research poll in July that showed almost 60% of Australians support "assistance by federal and state governments to ensure US motor companies continue to manufacture cars in Australia".

Though most Australians support cars being made in Australia, the demand for locally manufactured cars in decline.

From around one million in 2004; today, only a third, or half of these million of these cars will be locally sourced. Over the next 20 years, Australian governments will purchase around 1.5 million cars. In 2011 Australia imported 86% cars and around eighty percent of these vehicles were imported from Japan, South Korea, Thailand and Germany. These countries have a balanced mix of tariffs and non-tariff systems which protect their car industries, reports the Herald Sun.

The relationship between the supply and demand is an unstable one.

Co- investment in the car industry supports the supply side but demand is still low. If all levels of government and private fleets purchased Australian-made cars, sales would increase by around 450,000 per year.

While the recent return investment of $1 billion got GM’s commitment to maintain its presence in Australia for at least another decade, Ford is unlikely to remain beyond 2016.