Productivity Commission report to question value of car subsidies

[Dash_XR]

It took them a bit longer then 6 months to fix Labors damage last time, be patient.

[robertjp]

At the rate they are going, what will be left! Remember this is a car forum, will a series of workshops spring up to modify Kia Rio's and Great Walls?

Oh what a wonderful place that would be.

[jpd80]

Originally Posted by robertjp

Why are the libs intentionally sending Australia destitute!Remeber that Mr Abbott said he was going to create 2 million jobs, has anyone done a count of job losses so far?

Do these guys really think that they will win the next election or are they deluded?

But they've stopped the votes....err boats.

Seriously, it has less to do with politicians and more to the disposable economy we now live in,
why are we so surprised that more and more products are now under increasing cost pressures when
consumers demand the lowest prices without ever considering the consequences or even giving a damn.

[Dash_XR]

Originally Posted by robertjp

At the rate they are going, what will be left! Remember this is a car forum, will a series of workshops spring up to modify Kia Rio's and Great Walls?

Oh what a wonderful place that would be.

Well that's the thing once aussie cars are done are people going to keep what they have and start pumping money into the Australian aftermarket or will they just keep sending their money overseas every 3-5 years?

My XR will only ever be replaced for an F6 or maybe a GS ute and then I'll just keep upgrading it with the help of Australian company's.

[BroadyFord]

Don't worry.

When the dollar hits 0.50c we can all be waiters and bartenders for the thousands of tourists who will visit our shores!

Mike Devereux was certainly correct when he said "2013 will be the year when Australia decides if it wants an auto industry or not"!

I wonder if Abbott and Hockey would be responding the same way if the industry was based in their home state of NSW?

[Franco Cozzo]

Originally Posted by robertjp

At the rate they are going, what will be left! Remember this is a car forum, will a series of workshops spring up to modify Kia Rio's and Great Walls?

Oh what a wonderful place that would be.

Last time I checked it wasn't just Falcons and Commodores which get all the modifications, there is a huge amount of cars.

Even diesel performance is taking off big time these days.

[Bill M]

Originally Posted by BroadyFord

Don't worry.

When the dollar hits 0.50c we can all be waiters and bartenders for the thousands of tourists who will visit our shores!

Mike Devereux was certainly correct when he said "2013 will be the year when Australia decides if it wants an auto industry or not"!

I wonder if Abbott and Hockey would be responding the same way if the industry was based in their home state of NSW?

You raise a valid point that many seem to be ignoring that the trend for the $AU is down. You left out the Certificate in container handling!

[bobthebilda]

Originally Posted by Brazen

Germany provides approximately $7.5 billion annually in vehicle making subsidies.

Although that $7.5 billion figure is not true, even if it was, the germans make approx. 6 million cars per year, or approx. $1250 per car. Australia subsidises its car industry at $1.5 billion per year, and gets just over 200,000 cars per year, or approx $7000 per car. And for our money we get the likes of camrys and cruzes, not quite what the germans make.

[Bill M]

Originally Posted by bobthebilda

Although that $7.5 billion figure is not true, even if it was, the germans make approx. 6 million cars per year, or approx. $1250 per car. Australia subsidises its car industry at $1.5 billion per year, and gets just over 200,000 cars per year, or approx $7000 per car. And for our money we get the likes of camrys and cruzes, not quite what the germans make.

Your sources for the 1.5 billion per year?

[Magee]

I don't know if just me, but I am starting to see some similarities between Joe Hockey and Wreck it Ralph.

[bobthebilda]

Originally Posted by Bill M

Your sources for the 1.5 billion per year?

They sourced it from the federal and state governments.

[SB076]

Originally Posted by Bill M

Your sources for the 1.5 billion per year?

"bobfacts"

[BHDOGS]

The pc reporting exactly what the government wants to hear theres a shocker youd almost think they pay there salarys.

[Road_Warrior]

I had reservations about this "review" when it was announced, but thought I would play along anyway.

The broader policy environment in which the automotive manufacturing industry operates directly affects the productivity and competitiveness of automotive manufacturers, and the capacity for firms and individuals to respond to changing market and competitive conditions. In particular, workplace arrangements are limiting efforts to promote workplace flexibility and increase productivity in some cases.

No ***** Sherlock. They haven't covered the questions the role FTA's have played in all this. This issue has not received the coverage it should have, instead they are playing up to the emotive public debate about subsidies which is a rather one-dimensional view of the industry, what makes it tick, what is making it fail and what can be done to create a sustainable industry.

[Struggo]

Dutch disease has well and truly infected the Australian economy.

[Dmarc]

Originally Posted by mik

I had a pretty good full page responce written up, meh, ............but all i'll say now is we have handed this industry among others to artificially low cost countries that we have helped make economic power houses to our own countries detriment, and this like many other foolish decisions and events in Australia over decades past will come back to bite us on the *** in the future, of that i have no doubt.

This has not happened by chance, do some research on the Lima agreement. It was signed in 1975 with the support from both labour and liberal. It's basically designed to transfer our technology, tools, jobs and wealth to 3rd world nations. As we all can see it is working as planned. Those treasonous dirtbags currently living life on their gold cards and fat superannuation should be rotting in jail. For that matter so should the rest of the pr@#ks in Canberra currently serving their globalist masters!

[GasoLane]

Originally Posted by robertjp

Why are the libs intentionally sending Australia destitute!Remeber that Mr Abbott said he was going to create 2 million jobs, has anyone done a count of job losses so far?

Do these guys really think that they will win the next election or are they deluded?

Keep politics out of the discussion please.

[Struggo]

Originally Posted by Dmarc

This has not happened by chance, do some research on the Lima agreement. It was signed in 1975 with the support from both labour and liberal. It's basically designed to transfer our technology, tools, jobs and wealth to 3rd world nations. As we all can see it is working as planned. Those treasonous dirtbags currently living life on their gold cards and fat superannuation should be rotting in jail. For that matter so should the rest of the pr@#ks in Canberra currently serving their globalist masters!

http://www.youtube.com/watch?v=lPnKJUu07rE

[csv8]

The Productivity Commission has warned of possible early plant closures by Ford and Holden if the government goes ahead with its planned $500 million reduction to industry funding between 2015 and 2017.

In its 215-page preliminary report that recommends winding back the billions in taxpayer support to the crumbling Australian automotive industry, the Productivity Commission proposes closing the Automotive Transformation Scheme that is legislated until 2020 and was used to encourage “co-investments” with global car makers.
It has been reported that Holden has confirmed it will cease production by 2017.



However the Commission has warned that the implementation of a Liberal election promise to strip $500 million from ATS funding could “result in costs greater than the savings benefits”.
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Ford announced it would shut its Broadmeadows and Geelong manufacturing plants by October 2016 while Holden will close its Elizabeth and Port Melbourne manufacturing plants by the end of 2017.

It also warns that such a cut could impact Toyota’s decision on whether to commit billions of dollars to a new generation Camry beyond 2018. Toyota is due to decide on the fate of its Altona production line this year.

“In the Commission’s view ... there would be benefits to the Australian community from reducing total capped ATS funding as soon as possible,” the report, released today, read.

“However, consideration should also be given to the potential severity and duration of any transitional costs associated with changing the timing and amount of funding withdrawn from the ATS. While the effect of the MYEFO (2013-14 Mid-Year Economic and Fiscal Outlook) funding schedule on adjustment costs is unclear, the uneven funding profile could elevate the risk of earlier plant closures by Ford and Holden, and might negatively affect investment decisions by Toyota and its component suppliers.”

As well as additional taxpayer costs the Commission warned such planned reductions to the ATS could create further turmoil as the industry undergoes massive changes.

“The changes to the legislated funding schedule could therefore result in costs greater than the savings benefits by front-loading large, simultaneous adjustment costs throughout the automotive manufacturing industry. The announced savings will potentially elevate policy uncertainty for the automotive manufacturing industry at a time of already major structural change.”

The report suggests continuing with higher levels of ATS funding in the short term could reduce “adjustment” costs longer term.

“A smoother reduction profile would delay the savings benefits, but may also reduce adjustment costs.”

In previous interviews neither Ford or Holden has refused to rule out shutting their plants early, suggesting significant changes to the political or manufacturing landscape could pull forward such actions.

Toyota and Holden refused to comment.

A Ford spokesman reiterated that changes to business conditions could impact the timing of the brand's local manufacturing shutdown.

"Our intent is to continue manufacturing until October 2016 but if the market changes significantly ... we may need to have another look at it," he said.
http://news.drive.com.au/drive/motor..._newsletter_v1