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Toyota closure and the machine that goes ping

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As devastating as it will be for Victoria and south Australia the economic realities of the car industry can no longer be denied by the minions of the left who would have our government pump billions of dollars of borrowed money into keeping the car manufacturing industry alive. The whining from the Labor party about this is as unsurprising as it is self serving. Simply put with the end of car making in this country we will also see significant  decline in one of the countries larger unions, and where the unions decline so too does the power base for the ALP. Likewise the rhetoric from the ALP that the closure is the fault of the current government is sill beyond description if you ask me, its actually a bit like blaming the doctor who turns off life support for a road accident victim  for that persons death.

Not that I think that Australians are going to reject  Toyota cars into the future, many of the best selling models are already fully imported anyway. The thing is after both Ford and General Motors made similar decisions we all knew that Toyota would follow As other far more knowledgeable commentators have pointed out its the scale of our market and our sustained high dollar that has caused this death and there is absolutely nothing that the government could do to change those factors. and that is why we could never compete with the other countries when it comes to making cars. Like that imagined accident victim the time has come to turn off the machine that goes ping, to sing our eulogies and to then move on to the future.

Sad cheers Comrades

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13 Comments

  1. Richard Ryan says:

    “Australia is open for business” snigger,snigger, all in Abbott’s watch.

  2. Iain Hall says:

    Your delight is rather unseemly Richard

  3. deknarf says:

    Strangely, a lot of modern economies see the value of maintaining a manufacturing base in their country using subsidies. Whereas, Australia’s current government seems intent on destroying it!
    Given that the NO Coalition is also trashing the NBN then the waffle about transitioning to a modern, high-tech country is just that — waffle!
    Poor bugger my country!

  4. Iain Hall says:

    Deknarf

    The level of subsidy that would have been necessary to maintain the car manufacturing industry is unaffordable.
    As for the NBN it seems that you are mistakenly believing that the promise from Labor was the reality on the ground. when it was nothing bit spin. For example my brother who lives even further out in the sticks than I do is on the NBN satellite service and thanks to the way that Labor set it up there is a gross under capacity with almost 3 times the demand over the capability of the satellite to deliver connectivity. Often he can’t get service at all. That is not the fault of the current government its the fault of Labor because, as usual they over promised and under delivered

  5. deknarf says:

    Sustaining three manufacturers is certainly unsustainable, maintaining one, not so! Not if you want to maintain a high tech manufacturing base in this country.

  6. Ray Dixon says:

    The Abbott Govt surely should have made some effort to retain at least one manufacturer but they seem quite happy to add to the unemployment queues (that’s the Liberal way – keep downward pressure on wages by maintaining a large pool of unemployed). On the other side, these companies like Holden, Ford & Toyota have received massive assistance over the past decades and owe us some loyalty. If the Govt doesn’t want to give them more financial assistance to stay then they could at least tell them that there’ll be bloody high tariffs imposed on their imported cars if they shut up shop and leave. That might make them change their minds.

  7. deknarf says:

    The NO Coalition has no plan for the future of this country, nothing coherent which takes into account the changes going on about us — economically, technologically or in energy. All they have is an ideology that the US style free-marketeering is the model to emulate. A real look at the economic distribution of wealth (and the concomitant poverty and hopelessness of its people) in America shows just how flawed and disgustingly unfair this model truly is. Theirs is a party for the economically elite.
    Mind you I haven’t heard anything of coherence from Labor either but at least their ideology is more about people than failed trickle down economics.
    I’d welcome a new centralist party more interested in the welfare of the people, the economy and the future of this country.
    Poor bugger my country, that has such narrow focussed ideologues in it!!

  8. Iain Hall says:

    Deknarf
    The car industry has been on life support for most of my life and there is just nothing that the government could have done to make it viable. What successive governments have done is pay more and more bribes to keep factories open but they just can’t do it forever.

  9. deknarf says:

    If you want to maintain some technological manufacturing base in your country then there are circumstances where you assist it, by way of tariff or handout. Most developed countries do it to form a basis for technological innovation and a source of technological skills. That doesn’t mean that you support it for ever, or than you don’t have a plan to shift the manufacturing to where advancing technology leads you. Used to be a phrase ‘elaborately transformed manufacture’ that we don’t hear anymore. Probably because our politicians find it a tongue twister, and far too difficult to contemplate. Germany, Japan, Korea, now China moved/are moving in that direction. Australia comprehensively failed to do so. The motto: Get smart or fade into obscurity!

    Like I said our politicians (and I refer to both sides of the political fence) don’t have any plans to nudge the Australian economy into ETM or any technological modernisation. Basically they are about as strategic as a cornered rat — “bite, run away, bite, run away”. And that’s the tragedy!

    I find it particularly distressing that, after a long career in science, research and Intellectual Property management, to watch the decline in this country of support for scientific and technological innovation by government (and incidentally business). And to see that the future doesn’t lie it digging up iron and energy resources and flogging them off overseas! After they’ve gone, what have you? Just a hole in the ground, and because most of the companies flogging it are foreign, not much to show for it!

    Like I said — Poor bugger my country!!

  10. Richard Ryan says:

    AS for Qantas? We have an Irish Joke ruining Qantas, are not Irish Jokes no longer allowed? Maybe we can have the Muslims running Qantas.

  11. Iain Hall says:

    Maybe we can have the Muslims running Qantas.

    If we did at how long before Quantas had no aircraft left?

  12. Ray Dixon says:

    The Irish CEO of Qantas (Alan Joyce) is a joke alright. He’s a desk clerk promoted to deliberately run down the company and share price making it ripe for a takeover (once the Liberals change the law to allow it, which they surely will). This has been a long term plan and the bottom line is *someone* will end up picking up a bargain and making a motza. Pity the board decided to trash their own brand and ruin their once proud reputation though.

  13. Richard Ryan says:

    The Economic Terrorist of Qantas Airlines: Alan Joyce.

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