Australian auto industry booming into the future

By Cornelius Nunev


The Australian automobile industry is no afterthought, said Federal Chamber of Automotive Industries CEO Ian Chalmers. The country is turning out top-quality vehicles and exporting an abundance of engineering talent.

Some Australian designs

Chalmers is excited that there is production in Australia.

"It continues to excite us with new designs, new models and new features," he said. "It does this while making cars safer, more environmentally responsible, and - most importantly - more affordable. "Economic purists may call our industry archaic, past our use-by-date. The term 'rust bucket' seems to flow easily from the tips of their often poisonous pens. But this characterization could not be further from the truth."

A solid domestic industry

A solid network of domestic parts suppliers and the three biggest domestic car manufacturers - General Motors Holden, Ford and Toyota - are helping transform Australia's economic landscape. Chalmers views this as essential for the continued prosperity of the country for many years to come.

"The auto industry does this by developing and sustaining local expertise, honing technology and driving innovation," he said. It is one of the largest employers of industrial designers and the largest customer of the tooling industry.

There are over 50,000 Australians employed by the automotive industry domestically, according to Chalmers, and a lot of individuals employed in sustaining industries. The industry does over 1 million annual sales domestically and has over 60 brands to work with. There are billions of dollars being put into the nation's economy through the industry as the nation takes less than it gives.

Most sales with exports

The Australian automobile sector must depend upon exports for the bulk of its sales, but vehicles are not the only thing that the country sends across the ocean.

"We're increasingly in the business of exporting not just cars, but knowledge, expertise, ideas, designs and engineering solutions," said Chalmers. "The investments being made by the car companies to satisfy evolving customer expectations are helping to create jobs and enhance the automotive industry's strategic capability."

The one thing companies have to keep in mind is the price of exporting goods. There are always tariffs and competition to deal with. Australia used to have a 30 percent tariff rate in the 1990s, but that has decreased quite a bit, to only 3.5 percent.




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