Abstract
The decision by the three multinational automotive manufacturers – Ford, General Motors and Toyota – to cease production in Australia followed a long period of decline in the local industry. This paper examines the factors potentially contributing to these decisions including reductions in government assistance to the industry, the volatility in exchange rates, global strategic decisions by the parent companies to shift production to expanding markets in Asia, and the role of industrial relations and trade unions. Despite the attention given in public discourse to industrial relations arrangements in supposedly hastening the demise of local automotive manufacturing, we find that this factor made no identifiable difference to the final decisions of the parent companies in Tokyo and Detroit to cease production in Australia, which can be attributed to an unfavourable conjuncture of factors. The paper concludes by considering possible options for retaining some aspects of automotive manufacturing in Australia in the future.
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