Essays on The Automotive Industry in Australia Case Study

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The paper "The Automotive Industry in Australia" is a good example of a marketing case study.   The automotive industry in Australia which is worth A$7.7 billion produces cars, light commercial vehicles, buses, vans, sports utility vehicles (SUVs), heavy-duty trucks and specialized vehicles such as fire trucks. However, the industry is recognized by large passenger vehicles (Department of Foreign Affairs and Trade, 2008). There are over 200 firms producing automobiles and their components with the main players being British Leyland, Toyota, Mitsubishi, Ford, and Chrysler. The automotive industry is a key contributor to the country’ s economy representing 6% of the manufacturing industry (Reuters 2008; ABS 2004).

On average, the industry produces 320,000 vehicles annually both for the domestic market and foreign market. Unfortunately, the industry faces high competition from the foreign market given that over one million vehicle sales were recorded in 2007 alone (Review of Australia’ s automotive industry 2008). Prior to the global recession which forced massive industry-wide job cuts, the industry had a total workforce of over 65,000 people (Reuters, 2008; Blanpain, Lanbury, & Wailes 2008). The government-industry fact sheet on the industry gives a clearer view indicating that that employment levels in the industry have been falling gradually from a high of 81,205 employees as of November 2005 to 50,188 as of November 2009. The industry produces motor vehicles in whole in spare parts but is reviewed as one industry.

The industry has surpassed is also a top foreign exchange earner and has surpassed traditional industries such as wine, wheat, and wool in revenue where for instance automotive product exports for 2007 were worth A$4.7 billion (Review of Australia’ s automotive industry 2008).

In 2009, 72,503 units were sold in the local market while 147,680 were exported. Export destinations include China, India and the US. However, recent focus has shifted towards emerging markets such as China and India (WARC, 2008) The industry has experienced phenomenal growth in the last few years despite a number of challenges such as the recent global recession. Its growth has been powered by innovation and the industry’ s ability to produce vehicles as a whole; from sheets to the dealer shop. An innovation that has focused on the production of more environmentally safer cars through fuel efficiency and green production has seen the industry contribute almost 17% of the total amount invested by the manufacturing sector in research and development.

In essence, the automotive industry’ s investment in R& D is nine times higher than the rest of the economy and three times higher than the manufacturing industry at large (Review of Australia’ s automotive industry 2008). Leading companies Toyota Toyota Australia is a subsidiary of Japan-based Toyota Motors. Its presence in Australia began through Theiss Brothers who imported and sold the first LandCruiser models for work on the Snowy Mountains Hydro-electric scheme in 1959 (Blanpain et al 2008).

The first assembly of Toyota cars commences in Melbourne under Australian Motor Industries (later AMI-Toyota) in 1963. A decade later, two more models, Corolla and Corona, were being assembled. Theiss Toyota concentrated on heavy commercial vehicles while the AMI Toyota made simple personal cars. In 1988, both units were unified to form Toyota Motor Corporation Australia. The pooling of resources and expertise gave the company a platform to propel its activities a notch higher as a crucial industry player.

Further consolidation in 1994-95 saw the establishments of a world-ranking Altona plant in Melbourne that handled all the assembling and manufacturing (Toyota, 2010).

References

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http://www.abs.gov.au/AUSSTATS/abs@.nsf/2f762f95845417aeca25706c00834efa/b7f52642c92ff11cca2570ec0073f6a7!OpenDocument

Blanpain, R. Lanbury, R. and Wailes, N. Globalization and employment relations in

the auto assembly industry: a study of seven countries. Perth: Kluwer Law International

Department of Foreign Affairs and Trade 2008. Submission to the Review of

Australia’s Automotive Industry 2008. Retrieved online on 14th April from http://www.innovation.gov.au/automotivereview/Documents/113%20DFAT%20220508.pdf

Greber and Zachariahs (2010). Australians Working Longer May Prompt Higher

Peak in RBA Rate. http://www.businessweek.com/news/2010-03-11/australians-working-longer-may-prompt-higher-peak-in-rba-rate.html

Holmes, S. 2009. Australia's Unemployment Worsens. Retrieved online on 14th April

from http://online.wsj.com/article/SB124710684556816209.html

Howard, C. (2006) 3DayCar Production Flexibility Solving the Barriers to Build-to-

Order with Production and Process Technology/ Retrieved online on 14th April from http://www.3daycar.com/mainframe/publications/library/prodflex.pdf

Laungaue, A. and Williams (2008) Toyota Australia - When newer isn't enough: The

launch of the Lc70. Retrieved online on 14th April from

http://www.warc.com/ArticleCenter/Default.asp?CType=A&AID=90343&Tab=A

Martin, A. 2009. The Global recession and Australian manufacturing. Retrieved

online on 14th April from http://directaction.org.au/issue12/the_global_recession_and_australian_manufacturing

Motor vehicle standards act 1989. 2006. Vehicle Standard (Australian Design Rule

80/02-Emission Control for Heavy Vehicles) Minister for Local Government, Territories and Roads. Retrieved online on 14th April from http://legislation.gov.au/ComLaw/Legislation/LegislativeInstrument1.nsf/0/34E635C55F4B2726CA25724200028CB6/$file/ADR8002ExplanatoryStatement.pdf

Outlook for the Automotive Manufacturing Industry Fact Sheet. 2010. Retrieved

online on 14th April from

http://www.industry.gov.au/Section/AboutDIISR/FactSheets/Pages/OutlookfortheAutomotiveManufacturingIndustryFactSheet.aspx

Review of Australia’s automotive industry (2008). Retrieved online on 14th April from

http://www.innovation.gov.au/automotivereview/Documents/aug08%20final%20report_secure.pdf

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