The end of the Australian car industry is inevitable. At least so thinks Jac Nasser, former chief executive of Ford now at the head of the largest mining group in the world, BhP Billiton. Commenting on Holden's announcement that it would cut 500 jobs in South Australia and the state of Victoria, Australian Nasser said it was a shame that Australians weren't patriotic enough to support the local auto industry.
"If you compare the incentives that the automotive industry has had in other countries, this is the only possible conclusion." Nasser added that Australians are not "emotionally connected" to the auto industry. The sector's difficulties are due to the strength of the Australian dollar and the fierce competition of foreign industries which can often count on cheap labor and raw materials and energy at lower prices.
"The signs are not good," Nasser commented again. "Local industry has decreased the number of engineers in the workforce and this is an indication of the reduction of research and development programmes."
There are currently three automotive groups manufacturing in the Australian country. Apart from the local Holden group, there are Ford and Toyota. "It is enough for one of them to stop production and, with a domino effect, the whole industry collapses".
