Essay about Motor Vehicle Manufacturing in Australia

1791 Words May 7th, 2011 8 Pages
Motor Vehicle Manufacturing in Australia

INDUSTRY ANALYSIS

Overview

Thomson (2003) explains that the manufacturing of motor vehicles is a global game. Thomson (2003) argues that Australia does not really have domestic businesses that manufacture motor vehicles as the three major car makers (GM Holden, Ford and Toyota) are all subsidiaries of foreign companies. However, this is not the case, GM Holden for example produces many cars a year in Australia for Australian consumers as well as engines for export.

Industry Attractiveness
The Ibis report (retrieved 1 August 2010) shows that the motor vehicle manufacturing industry in Australia is a $11.8 billion industry where 19,025 are employed. The industry is said to grow
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Moreover General Motor’s largest investment in Australia in the past 20 years was in 2004 with the opening of the Victorian engine plant at a cost of $400 million.

SWOT Analysis
Strengths
Large market share:
Although the market share in Australia has recently dropped it is still very healthy and competitive at 29.4%, also increasing their market share globally especially in China where business and foreign motor export is booming there is no reason that Holden wont become the automotive leader of the past.
Global Experience
Holden is a global company and as such its success is determined on the basis of global sales and profits and consumer/product competitiveness. For nearly a decade now Holden has extended and held a grand market share globally for car and motor sales. It is this experience that will allow Holden to flourish into the future.
Brand name variety
Although all sitting under the one banner of Holden, names synonymous with quality and appeal will always be regarded as a key strength to Holden’s success. Astra, Commodore, SS Ute; these names have become synonymous with Australian living and are held dearly to Australian ways of life.

Financing Plans
The GM Holden customer-financing plan originated in 1919 (USA) has become the most successful profiteering scheme in Holden’s history.

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