The paper "Government-Business Relationship in Australia Automotive Industry" is an outstanding example of a business case study. The car market in Australia has been relatively small as compared to the other large car manufacturing regions like Japan, Europe, and North America (Simpson, Power & Samson, 2007). However, this industry has had a significant impact on the economy of Australia. The relationship that the car industry has had with the Australian government can be said to be of vital importance to the industry (Simpson, Power & Samson, 2007). The Australian government has stopped providing financial assistance to the sector which is evidently rather shaky and small.
This withdrawal has resulted in more collapse of the industry because the manufacturing and operational processes are very costly which the industry cannot manage to sustain (Simpson, Power & Samson, 2007). Therefore, the paper will discuss the government-business relationship that exists in the automotive manufacturing industry in Australia. The paper will also argue that the government did not make the right decision to terminate their financial support to the sector that is already struggling. Government-Business Relationship Recently, there has been a significant change in the car manufacturing industry in Australia (Cooney, 2002).
The automotive manufacturers who that are remaining in Australia, that is, Toyota, Ford, and Holden have also made an announcement that they want to terminate their production in the Australian state which will be implemented by the end of the year 2017 (Cooney, 2002). This industry has had a rather long history of obtaining support from the government. The Australian government has always had some industry-specific measures on their budget which was intended to assist the car manufacturing industry to adjust to the international market (Cooney, 2002). One of the schemes that the government established to help this industry was known as the Automotive Transformation Scheme (ATS) which was a government-initiated program aimed at providing the necessary financial assistance from the year 2008/2009 all through to the year 2020/2021 (Blismas & Wakefield, 2009).
The government also intended to make use of this program to encourage innovation as well as competitive investment in the car industry which will consequently place the Australian automotive industry on a sustainable footing economically (Blismas & Wakefield, 2009).
Therefore, despite this long-term relationship between the industry and the Australian government, and after about 90 years of this car manufacturing industry in Australia, it seems that it is going to be terminated or come to an end (Blismas & Wakefield, 2009). The relationship between the government and the Australian automotive industry began deteriorating following the massive losses that the business has been incurring (Porter, 2008). For example, the Australian Federal government offered about 24 million dollars to the production of the Camry model which was said to require about 800 new parts which did not happen (Porter, 2008).
The country will still need to import this model from Thailand following the Free Trade Agreement that they have with Australia. Additionally, the Australian government argues that they will save a substantial amount of money of up to about 215 million dollars after terminating their financial help to this industry over a period of four years only (Porter, 2008). This only means that the government started to perceive its relationship with the industry as non-beneficial and they would rather channel these resources in other more productive initiatives.
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