Car Industry Essay

Submitted By tinomax

Words: 388

Pages: 2

Open Document

Australian Government Subsidies to the Car manufacturers
Introduction
Subsidy is the money given by the government to a chosen firm or individual from the taxes it collected from the general public.
It means the government pays for part of the costs of production.
Recently the Australian car industry is undergoing dramatic changes with GM-Holden (December 2013) and Toyota (February 2014) announced they will cease manufacture operations in Australia, followed Ford’s announcement in May last year.
According to the media reports one of the main reasons behind the ending of the automotive industry is the Federal Government refused to provide further financial assistances to the car companies. (Vaseh and Maher, 12-01-2012)
The car industry is one of the most heavily assisted industries in Australia. The Productivity Commission (PC) estimates that “the equivalent of around $30 billion (2011-12 dollars) was provided to the industry between 1997 and 2012 in the form of tariffs and various subsidies.” (2013, p8)
Many economists argued governments should not interfere with the market economy and it is bad economics to subsidise the car industry.
Others pointed to the fact that the car makers and associated industries (such as the parts/ component industry) is a big employer and contributed a sizable portion of the GDP. The benefits they brought to the community far outweigh the subsidies they received.
Case For Subsidy
Case Against Subsidy
“Australian manufacturing costs have risen far above costs in nearby Asian nations in recent decades, prompting successive governments to attempt to pay to keep factories

car industry Essay

BBC Finance Competencies BBC Finance Competencies – June 2012 Page 1 of 8 Purpose The “Finance Competency” framework has been designed to provide a basis for assessing individuals during recruitment, development and performance management. It introduces a single set of criteria that can be used by individuals for selfassessment and by line managers to assess and develop staff on an ongoing basis. The premise for this design is that the fundamental competencies required will be the same…

Words 2019 - Pages 9

Case Study Of Innovation In The Car Industry

ABSTRACT The car industry has constantly provided us the consumer with a wide range of choices and varieties to suit our needs, but with the vast amount of competition how do car manufacturers attract our attention. Unique designs, impressive technology, price and customer service are all the areas consumers look for in a car, to meet these demands car manufactures need to constantly come up with new ideas to stay ahead of other competitors, introducing creative ideas which are better than what…

Words 13571 - Pages 55

Essay about gas engine and car industry

Zack Taubitz History of the gas engine Senior Project 28 October 2014 Engines and the Automobile Industry Can you think of any more of an influential invention than the engine? The Chevy Motor Company and the whole car industry would not be where it is at today with out J.J. Estienne Lenoir and his creation of the internal combustion engine. Today, the gas engine has become a giant part of society and everyday life. The engine has been around since the early 1800’s, and it has been evolving…

Words 1655 - Pages 7

The Change Of American Automobile Industry

The change of American automobile industry Bing Bai St. Thomas University Feb 20, 2013 Author Note Bing Bai, Department of Business, St. Thomas University This research was supported in part by a grant from the BUS 673 management writing & reporting class. Correspondence concerning this article should be addressed to Bing Bai, Department of Business, St. Thomas University, 16401 NW 37th Avenue…

Words 4515 - Pages 19

Essay on Industry Analysis

INDUSTRY OVERVIEW The car & automobile industry in the U.S. primarily assemble automobile and manufacture automobile chassis. This mature industry has three main companies, which includes General Motor, Ford, and Chrysler. The main products and services included in this industry are: compact and subcompact cars, midsize and full-size cars, sports cars, and luxury cars. However, this industry does not include both light trucks and heavy trucks, such as vans, pickups, and SUVs (IBIS World, 2014)…

Words 2346 - Pages 10

BUS201 Business Essay

Australian Car Manufacturing Industry Current Position Australia is a car production nation that is invest by a few big major car manufacturer that operating car manufacturing in Australia. Australia are capable to design and build a car from scratch and produce in volume there are only a few countries in the world that are capable to do that. But unfortunately Organisation Internationale des Constructeurs d’ Automobiles (OICA) or better known as International Organization of Motor Vehicle in the…

Words 1574 - Pages 7

Salle Daniel Industry Analysis Paper

automotive industry in the United States is dominated by five firms, being General Motors, Ford, Honda, Hyundai, and Toyota. These companies assemble automobiles and manufacture chassis, and together these companies make up 70% of the total market share of a $102 billion industry that has 202 companies (refer to figure 1). The types of vehicles the car and automotive industry produce are cars which include mid and full size sedans, sports cars, luxury cars, compact cars, and electric cars. I will not…

Words 3171 - Pages 13

Automotive industry Essay

Automotive industry is a fast-paced industry with many advancements as far as its huge potential is concerned. Many multinational companies are involved in the industry. Tata motors and Aston Martin are the two giant companies with different types of vehicles. Tata motors Tata motors is an Indian company owned by Tata group of companies. It is one of the major automotive manufacturing companies Macro environmental Forces Safety standards and Regulations: Safty standards and regulations of the country…

Words 455 - Pages 2

The Invention Of The Automobile And The Early American Automotive Industry

Automobile and the Early American Automotive Industry For my report, I am going to discuss the early automotive industry in America and how it helped transform our great country for the better. This topic really interests me and is a part of my family’s background. I will cover the three car companies known as “The Big Three”, and the effect this industry had on people. By the end of this paper, it will be clear to you that the automotive industry forever changed transportation and the American…

Words 964 - Pages 4

Economic Anaylist Paper

Auto Industry: Moving Forward Jessica Williams ECO2013 June 20, 2013 Auto Industry: Moving Forward Jessica Williams ECO2013 June 20, 2013 When it comes to supply and demand of the automotive industry as well as the profits resulting from the sector are clearly impacting by then macroeconomic policies. The industry’s history demonstrates the developments it follows in the business cycle and how economic indicators have impacted the performance of the industry…

Words 1837 - Pages 8