Originally Posted by
DiscoMick
The fact is that protection works, that's why all the big car-making countries protect their industries. This is a unpopular political and economic theory in Australia, but taken for granted in most of the world.
Obama nationalized GM and Chrysler to save them, and then sold them off, while Japan and Germany offer huge hidden subsidies to their vehicle industries. Thailand has built the biggest vehicle manufacturing industry in the region by imposing massive tariffs on imports. The countries that tried to reduce protection have seen their vehicle industries shut down or be sold overseas.
Of course, to succeed you need a lot more than protection. You need world competitive cars made at acceptable costs which meet the actual needs of consumers. Our industry mostly either made the wrong cars, failed to adjust to changing buyer preferences and failed to develop export markets. Part of the reason for that is that multinational companies are always going to shift the bulk of their manufacturing costs to low-cost countries and be reluctant to invest in high-cost factories.
So, sadly, I think our industry has been doomed for about 20 years. That doom was hastened when the current government pulled the plug on about $300 million or so in assistance. Apparently, it would prefer to pay the dole to many of those workers than to support them to have real jobs. Strange thinking...
.