If that is the case than its because the industry is highly fragmented. We used to produce 80% or more of our cars, but now its more like 20%.
What we need is much higher tariff protection, plus import quotas.
The idea that by doing away with the manufacturing sector we are making progress is a nonsence. The laid off workers end up as public servants costing the community a lot more in the longer term. Or maybe we can have lots more regulations so they can be employed as lawyers and accountants - how productive is that? Yes I know, put them in the hospitality and home services industries where their main skills will be based on servant skills.
We also lose the skills base for a modern society.
However, we would not want to go back to the 1970s when we simply had far too many car producers in Australia being protected by tariffs. Rationalisation of the industry to two or three manufactureres plus co-operation with other manufacturers overseas is the way to go.
