With all due respect, IMO, you don't understand the auto market in Aus.
Perhaps, but neither did Mitsubishi with the Magna nor the government with the millions of bailouts and yet ultimate demise of the Adelaide plant. The Magna was produced locally and became a dismal failure not necessarily because it was a bad car but due to lack of sales - perhaps partly attributed to the rising cost of fuel and more competition or lack of successful car promotion?
This once successful line of cars came to an abrupt end in April 2008 after slow sales of the 380 caused Mitsubishi to pull out of Australian manufacturing. In hindsight if the company had simply called the 380 the next generation Magna, the Adelaide factory might still be in operation today.
I don't need to understand the auto market but if manufacturers don't, there are dire consequences. To make things worse, taxpayers were slugged for millions for bailouts thus perhaps govt did not seem to understand the car market
I am pleased to announce that Mitsubishi Motors Corporation has accepted a $35 million offer of assistance from the Commonwealth Government. This assistance will facilitate a major new investment in Mitsubishi’s Adelaide plant ...
The Commonwealth’s additional $35 million of assistance will be available from 2004-05 ..
The Commonwealth assistance announced today is in addition to the more than $200 million Mitsubishi is expected to receive from the government’s Automotive Competitiveness and Investment Scheme to 2005. The South Australian Government will also provide $50 million in cash and ‘in kind’ assistance to Mitsubishi to facilitate this investment.
So in excess of $285 million help from government. And yet:
Today’s expected announcement that Mitsubishi will no longer manufacture cars in Australia has surprised no one in the automotive industry.
Even the South Australian Government has backed away from buying the car in the past twelve months. South Australian State Government 380 sales dropped from 778 cars in 2006 to just 370 last year.
Interestingly, even the South Australian govt handing over millions, has walked away from purchasing from the plant. What part did the industry and government not understand?? Then add in subsidies and the subsequent demise of Sth. Australia's Elizabeth Holden plant and the Victorian Ford plant and ask just how much understanding there was at those levels.
Never mind what my level of understanding is but rather focus more on how to understand such crazy decision making processes from the industry and govt particularly as taxpayers were footing the bill.
Now taxpayers are still footing the bill with EV subsidies, solar panels and windmills, battery storage etc. When will they understand that this country will not make one bit of difference to fixing the 'alleged' climate change?? AIMO
