Thursday, April 23, 2009

Report : Australia's Dog & Lemon Guide says Australian auto industry is doomed !

As we know, Holden is the face of the Australian car industry. However, Holden is actually owned by General Motors, and we know what that means these days. With the crisis following GM, Holden is effected too.

Clive Matthew-Wilson, editor of Australia's Dog & Lemon Guide and industry analysts, says there's no way around a central fact of Australian automobile production: "Australia's car factories are losing money on every vehicle they make." Because of that, he believes that there is no future for the domestic car industry Australia, no matter how much money the government provides to keep factories open.

So, not only is Holden effected, but Ford Australia as well. Because of the economic Australian auto shutdown, Ford Australia is losing money too. Wilson thinks that's because of the high prices of local Australian cars.

''Globally, there's a glut of new cars at bargain prices," he says, "yet Australia, which produces a small number of high cost cars, is trying to compete with countries like China.... The Australian car industry can re-focus on small cars, green cars, blue cars or red cars. None of this will make the slightest difference."

So overall, it seems the Australian is shutting down due to market consumer change.

To read more on Wilson's Australian auto industry analysts, click the source below.

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