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Ken Gratton•4 Sept 2010
NEWS

Aussie vehicle production: Pros and cons

Readers mount arguments for and against a call to review the business case for local manufacturing

Australians love a good 'barney'. Favourite football team, pub band, soap opera... federal government? -- anything's cause for an argument. We're a nation of people who will 'blue' at the drop of a hat.


So when Suzuki's General Manager, Tony Devers -- a born and bred Aussie himself -- dropped into conversation with two journalists his considered view that local vehicle production is not viable, he knew that it would be reported and it would likely stir up a hornets' nest.


When we published Devers' comments in our CN Confidential piece on Saturday last week, we asked for readers providing feedback to reveal the car they own as well. Many readers responding wrote back with well considered arguments delivered in a measured way -- and we're pleased to bring those to you now.


One of the earliest emails came from Ray Wilson in Perth. Ray explained in detail how his Calais was ideal for his purposes and the needs of his growing family. Even in a market as diverse and competitive as Australia, there's little -- barring other locally-made cars -- that address the same needs. His was an eloquent argument from a retail customer's point of view:




One of our regular readers and known Volkswagen enthusiast, Corey Ingleton, supported Devers' remarks that the local car industry could shelve its labour-intensive manufacturing and focus more on R&D.




Geoff Langridge has been a paid-up supporter of the locals, but admits that the Australian manufacturers can't provide him with the sort of product he wants for his next car. He also takes issue with the Camry Hybrid for what it represents.




With questions currently being asked of the build quality of vehicles manufactured in Thailand and sold in Australia, one of our readers named John suggested that a local design could be built in Thailand -- possibly to a higher standard of quality than we manage here.




Another John, John Mangos, was happy to put his money where his mouth is, buying a Falcon G6E Turbo during the recent meltdown in global financial markets. He made no comment on Devers' opinion, but it's plain where he stands.




Dave Sloan was of like mind and defended unique models for our unique environment.




Environmental considerations were very important to Samuel Gall, not only from the impact of indigenous designs that have grown too large and "wasteful", but in the context of the manufacturing of these same cars.




David Bruns was one who admitted that although he drove an imported car -- one of a size not offered by any of the locals -- he welcomed the country's ongoing commitment to full-scale vehicle production. As for Samuel's response, David raised an issue that went beyond the question of economics, but where Samuel's concern lay with the environment, David's was more strategic. His argument is not without a basis in  history, when you consider GM-Holden's used to build 25-pounder artillery at the Fishermans Bend plant for the Australian Army during the Second World War.




Another reader to support local manufacturing was Kim Smith, who pointed out that Toyota's production plant at Altona is one of the mainstays of the Victorian economy (believed to employ as many as 3500 workers) and its closure would have an ill effect on the whole country's economy.




Guy Busato is resigned to our cost of labour pricing our finished goods out of contention on world markets and here too. He also acknowledged that there is a future for Australia's design and engineering talent, even if the manufacturing moves off-shore.




Callum lamented the lack of fuel-efficient diesel or four-cylinder petrol engines in the various companies' locally-built cars. That aside, he seemed to retain a soft spot for the Commodore, if not for the television commercial advertising it.




Jack, who supports the local industry in spirit and with cash, offered praise for the performance vehicles of both blue and red brands.




Stephen Porter was outspoken in his scorn for the way the local manufacturing industry has been hijacked by vested interests.




Liam Dwyer was even more upset, but took an opposing view based on being one of those vested interests -- an original equipment parts supplier to the three local manufacturers.




Two readers, Graeme Charrett and Eric Francis were convinced by Devers' argument.




Finally, we leave the economic argument against Devers' viewpoint to one of our long-standing readers, Warren. Warren drives an Alfa Romeo Brera, but fully supports local manufacture. His response is detailed and analytical -- and makes for interesting reading.



 


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Written byKen Gratton
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