economy $21.5b smaller without car making

Well this is a pretty sad state of affairs for Australian manufacturing!

Will Abbott kill car making in Australia?

"Economy $21.5b smaller without car making."

Report paints a bleak picture for Australia’s economy should the car manufacturing industry disappear.

Killing off car manufacturing in Australia would lead to a $21.5 billion hit to the economy and “heavily impact” regions such as Adelaide and Melbourne, a study commissioned by the Federal Chamber of Automotive Industries has found.

Australia’s gross domestic product would also be $7.3 billion smaller – or 0.6 per cent – in today’s dollar terms if the industry were forced to shutdown in 2018.

The study by the Allen Consulting group, which is being used by the FCAI to lobby for continued tax payer support and co-investment from General Motors Holden and Toyota, warns high-tech jobs and skills will be lost and significant foreign investment would be directed overseas.

“This report shows the value of automotive manufacturing to Australia,” FCAI chief executive Tony Weber said. “It details the benefits to Australia as a whole - to the economy, communities, the supply chain and other industries.

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“I want to be clear: financial support for the industry is an investment in Australia and this investment needs to be long-term.”

Using economic analysis from the Monash University, the study claims about 33,000 jobs would be lost in Melbourne and a further 6600 jobs in Adelaide.

“These jobs would eventually return in both cities, but with lower real wages,” the study said. “And employment levels would not return until around 2027 for Melbourne and 2025 for Adelaide.”

http://brisbanetimes.drive.com.au/motor-news/economy-215b-smaller-without-car-making-20131104-2ww0i.html