Essay On Car Manufacturing Industry

980 Words2 Pages
bulb-icon

Recommended: Impact on the automobile on the economy

The car manufacturing industry is an important pillar of the world economy affecting daily lives of people globally in many ways i.e. by creating job opportunity, introducing advanced technology and improving country’s economy. Likewise the car manufacturing industry in Australia plays very important role in Australia’s economy as well as is an important source of employment, employing thousands of employees. Automotive company like General motors Holden has helped Australia globally recognized as a major car manufacturer and created huge employment opportunity. But in the last few years, Holden suffered losses due to strong Australian dollar which directed declining sales of large cars in Australia. Also government fund being reduced this has led the company to look to international markets to increase profitability. Holden announced on 11 December 2013 that production in Australia would cease by the end of 2017 (Put Reference).
The car manufacturing industry in Australia provides a useful example of the way in which employment relations are shaped by a combination of global market pressures and local responses by governments, employers and unions.(Evolving Employment relations, Waring ,Bray page number 119 para. 1) The automotive sector accounts for approximately 6% of the total “value added” for manufacturing which is one of the largest source of employment and among Australia’s most significant export industries which comprises several hundred component suppliers and four foreign-owned vehicle assemblers: Ford, GM Holden, Toyota and Mitsubishi (Put reference).

Australia’s automotive industry is at a cross roads because of the declining vehicle volumes which have reduced benefits, forcing production levels below a critical fi...

... middle of paper ...

...d which automatically declined Australia’s car manufacturing industries business. On the other hand, the unions demanded high wages and conditions for their workers. This affected the economic status of the companies as they have to spend more on wages and facilities of workers. Apart from this, the bosses of international headquarters of the car companies treated Australian Government as a cash machine and made the value of Australian currency strong which discouraged sales of car in Australia.
Due to all those reasons, it became impossible to export cars because Asia-Pacific countries who are at the surroundings of Australia are manufacturing their own vehicles for one-quarter of the labour cost. (Joshua Dowling , The Big Read, 2014, p.4) www.couriermail.com.au/news/why-australias-car-manufacturers-toyota-holden-and-ford-all-conked-out/story-fnk1378p-1226827493012

Show More
Related

  • GMFC: Planning for a Union-Free Plant

    1815 Words  | 4 Pages

    Graham, L. A. (2008). How foreign-owned auto plants remain union-free. New Labor Forum (Murphy Institute), 17(3), 58-66. doi:10.1080/10957960802362738

    Read More

  • General Motors, Chrysler, and Obama's Bailout Program

    1618 Words  | 4 Pages

    The Big Three automobile companies, General Motors, Chrysler, and Ford, also had a very demanding labor union, the United Auto Workers or UAW, which asked for many benefits and salary requirements which lowered their ability to compete with other companies on the market, foreign and non-union. The average...

    Read More

  • Christianity and the Economic Impact of the Automotive Industry on Canada

    2560 Words  | 6 Pages

    Canada’s automotive industry was officially declared in 1914. At this point in time, Canada did not have its own car companies. Instead Canada assembled and sold cars for the US who had established their own automotive industry just a few years before Canada. By the 1920s, the automotive industry in Canada had really hit its stride and was well on its way to success. It had grown so rapidly that Canada became the second largest producer of vehicles in the world. This success came about because Canadians were buying tens of thousands of cars. Canada wasn’t just making them for Canadian citizens, but for the world. At times, nearly fifty percent of Canada’s vehicle output was exported.

    Read More

  • Trucking Industry Essay

    1587 Words  | 4 Pages

    This report was made to show how Action Modular can increase their profits and make them more marketable. The trucking industry is an industry that has and will be around for a long time. As long as there are manufacturers and consumers requiring their freight to be moved, there will be a need for trucks. If the marketing trend is monitored regularly by putting the right people in place and being proactive regarding the equipment and freight rates. Action Modular will be highly marketable and can yield more in revenue versus decreasing the revenue by utilizing outside carrier.

    Read More

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    To properly illustrate externalities that may shift the supply and demand curve in the U.S. auto market over the next five years, it is necessary to look at the recent events having affected the U.S. auto industry during the recession and the strides U.S. auto makers have made to recover from near devast...

    Read More

  • Economic Overview In Auto Industry

    1580 Words  | 4 Pages

    The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.

    Read More

  • Reasons Why Holden Is An Australian Vehicle Importer

    1830 Words  | 4 Pages

    Another reason Holden should consider expanding into China’s market is because China is a particularly good dilation target for businesses in the automotive industry. In the course of recent years, China has become the world’s largest customer and producer of autos. According to a report display, China’s car segment developed at a compound normal rate of 24 percent a year in the vicinity of 2005 and 2011 and, in 2010, surpass the America as the largest single-nation, new automobile

    Read More

  • Industrial Machinery Mechanic Essay

    1022 Words  | 3 Pages

    Anybody and everybody can become an industrial machinery mechanic; especially, those who are passionate about getting their hands plastered in motor oil, grease, and other mechanical lubricants. These people will more than likely be ecstatic about getting into industrial machinery mechanics. They need to be able to put in one hundred ten percent of their effort into becoming an industrial machinery mechanic. An industrial machinery mechanic’s overall objective on the job is to stop a mechanical error before it happens. An industrial machinery mechanics are often caught repairing, maintaining, and fabricating machinery. They will be required to have certain education and training as well as some on the job training or complete an apprenticeship program. They will receive many benefits for working in this particular field.

    Read More

  • Economics of the Automobile Industry

    2412 Words  | 5 Pages

    Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf

    Read More

  • Automotive Industry Analysis

    794 Words  | 2 Pages

    The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).

    Read More

  • Volvo Case Study

    1169 Words  | 3 Pages

    The automotive sector is a key industry in the Malaysian economy. The economic contribution of this sector is immense, with significant linkages to the manufacturing and services sectors. The automotive sector began with importation of vehicles which then progressed to assembly operations and the establishment of a wide network of automotive components and parts manufacturers. (Malaysia Automotive Association, 2005)

    Read More

  • Cars Essay

    1676 Words  | 4 Pages

    This started car companies to start to produce the better car and start making more cars. Eventually cars became more popular and help the economy grow.

    Read More

  • Auto Ford Motor Company Case Analysis

    911 Words  | 2 Pages

    The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto

    Read More

  • A Report on the BMW Group

    1982 Words  | 4 Pages

    As a result of the increased demand of cars, the competition among car companies is becoming intense. Although the market of car is the biggest growing market in the world, there are still some companies who make cars failing year after year. However, there are some outstanding car companies such as The BMW Group performing distinctly.

    Read More

  • Optimizing Australia's Manufacturing Industry for Economic Growth

    1482 Words  | 3 Pages

    All these stages in production require human power to accomplish. This implies that manufacturing industry offers employment opportunities to many people in the country. It helps to reduce the rate of unemployment in Australia which is an indicator of under development. When people in the country are employed, more revenue is collected in the form of income tax from the residents. This is a clear indication that the manufacturing industry is very critical to any economy and Australia should support higher manufacturing

    Read More

More about Essay On Car Manufacturing Industry

Open Document