The Australian automotive manufacturing industry has been hit hard with Ford’s announcement that it is dropping manufacturing the country, and closing down its two plants in 2016. Now fears have risen that GM may do the same as well, taking Holden with it.
Apparently, the cost of manufacturing cars in Australia is simply too high, due to a combination of factors including a strengthening of the local currency, high wages and their geographic position that can make sourcing parts more difficult. In fact, GM says it spends AU$3,750 ($3,548/€2,686) more for every car they make in the country, most of it being accounted for by the workers’ pay.
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