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Old 27-08-2019, 06:45 PM   #803
DMXR6T
Regular Member
 
Join Date: Dec 2009
Location: Sydney/Singapore
Posts: 70
Default Re: Will the Holden brand survive?

Cost of doing business in Australia is not just high wages, it is also:-

IR laws
3 levels of government red tape meaning multiple bureaucrats with many powers wanting time and money.
High taxes at state and federal level (company tax, payroll tax, capitol gains tax,.....)

All of the above caused me to set up an office in Singapore. Had no choice.

With regard to making cars in Australia, it does not make sense as the unit cost of production is far to high. we all end up paying a lot more in subsidies or purchase price and this cost is reflected throughout the economy so we also pay in other ways (cost to business for vehicles is higher). Trade between countries means that we export what we are good at and import products that another country is good at. We export biomedical, IT, coal, iron ore, rare earths, etc. Government subsidies for any industry have never worked (remember the government buying car companies in UK). Unfortunately bureaucrats never send money efficiently and it costs all of us (yes, I have worked for state & federal departments before I set up my own business so I have seen it first hand).

The car industry was simply not viable - volumes far too small. Better off now being a design centre and importer.
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