Originally Posted by
JDNSW
There are several fundamental problems, which are, in fact, beyond Holden's control.
1. Looked at long term, few, if any, car manufacturer, have ever been successful long term without either protection or subsidy. (Look at the long lists of manufacturers that have disappeared!)
2. Modern car manufacture, with very tight and specific legislative rules for design, mandates any model being built in large numbers because of the cost of development.
3. This means that any manufacturer must have a large market. Because of competition and protection in outside markets, this means they need to have a large domestic market.
4. Australia does not have a large domestic market - and it has fragmented over the last few decades, meaning that the market is tiny by modern standards for any single model.
5. The Australian car industry was protected since the first ban on importing complete cars in 1914, with Empire Preference between the wars and was heavily and increasingly protected from 1945 until about the 1970s, with protection gradually being wound back after that.
6. Even before protection was significantly wound back, Australians were increasingly paying the extra import duty on cars that were more modern and better equipped than the warmed over 1940s designs being offered by Holden, a trend that accelerated as Japanese imports started arriving in the 1960s, that like the UK and Continental imports not only came with heaters and radios, but actually could be sold for no more than the local cars. The heavy protection ensured that a lot of these were at least partly assembled here.
7. Improved communications made Australians aware how much more they were paying for cars than the same model overseas, and the popularity of protection consequently decreased.