Engineering firm recommends Australian car makers share a factory

Manufacturing Focus’s managing director Mark Fusco has said that Australia’s three remaining car makers Ford, Holden and Toyota follow examples in Europe and the United States and consider pooling their factories.

Amalgamating their manufacturing operations would boost productivity and economies of scale, said Fusco – who has worked in Japan, the United States and Europe – and similar schemes had been adopted successfully by Daimler Chrysler and Toyota in the US and Mitsubishi and Volvo in Holland.

"Having studied a lot of global car markets, our market is so small they're never going to have a dominant volume here," Fusco told The Australian.

"We have to talk about how we've got to consolidate capacity and make the fixed costs lower."

A spokesman for industry minister Greg Combet said the federal government would consider proposals, “based on their merit and would consider any collaborative manufacturing proposal in the same way."

Spokespeople for Holden, Ford and Toyota wouldn't rule it out, said it would be difficult and didn't respond respectively when asked about sharing facilities.

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