A lot has been said over the past few months about the state of the Automotive manufacturing industry in Australia and with a Federal election looming, there’s sure to be plenty of talk around policies that relate to industry subsidies, tariffs and return to the Australian Shareholder.
You don’t have to go too far back to see that Australia has always been a world leader in the world of manufacturing, with things like the iconic Hills Hoist, lawn mowers, the bionic ear and even Wi-Fi being developed and produced here.
In the Automotive space there’s a few things to consider; Australia is one of only 13 countries in the world where cars can be designed and built from scratch, we have a lot of really smart Australians whose skills would be very valuable overseas if they couldn’t be utilised here. Estimates have the number of Australians (Taxpayers) employed in the Automotive Manufacturing industry at somewhere near 50,000 with a knock on of those related industries reaching somewhere near 300,000 people, quite a lot isn’t it? With regards to subsidies’ many people overestimate how “level” the playing field really is. In fact, each Australian invests yearly around $18 in the local Auto Manufacturing space, Germany as a comparison is somewhere closer to $90 and the USA around $260! Recently released numbers showed that Holden received $2.2B over the last 12 years, which underwrote a knock on investment value of some $32B for the same period.
Not sure what you think, but that sounds like a pretty good return for Australia, with the added benefit of locking in an industry that helps continue to put us at the forefront of manufacturing excellence. For more information head to Holden.com.au or have a look at the YouTube video on FAPMAUS channel.