GM Withdrawal Risks Production Collapse


The news that General Motors Company (GM) will stop producing vehicles and engines in Australia in 2017 is not entirely a surprise given the difficult operating conditions in the country's production industry, as previously highlighted by BMI (see 'GM Holden Can't Use Yen Excuse To Mask Uncompetitiveness', April 12). The question now is whether Toyota Motor, the lone domestic producer following the withdrawal of Ford Motor in 2016 and GM in 2017, will continue manufacturing and whether the domestic supply base can adapt to survive.

Closure Always On The Cards?

GM's Australian operations have been gradually reduced throughout the year. In April, the company said it would be cutting 500 manufacturing jobs, while in August it closed its Opel division after returning to the market just a year earlier. Volumes were not as high as expected, and the European brand found it hard to compete on price.

Margins Narrowing Rapidly
Input And Output Sub-Indices For Australian Manufacturing Sector

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This article is tagged to:
Sector: Autos
Geography: Australia