Australia's auto industry: from military paranoia to dreams of modernity

[KIWI-1]

American, Japanese, British and even European auto companies once made cars in Australia. There was a moment at which it even made sense to design a car just for the Australian market. But as Keri Phillips reports for Rear Vision, the industry, built on government subsidy and protection from competition, has fallen on tough times.

In May this year, Ford announced it would close its Australian operation in 2016. In June, one of the two remaining car makers, Holden, signalled that its workers would have to take a pay cut or risk their company following suit. In the last 12 years, Australia's three car makers—Ford, Holden and Toyota—have been given over $4 billion by state and federal governments. Yet it still seems to be an industry on life support.

John Perkins, author of Wheels and Deals: The automotive industry in 20th century Australia, says that government involvement from the very beginning made the car industry here inefficient and uncompetitive.

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http://www.abc.net.au/radionational/...-myths/4808616