General Motors Co. ( GM ) and local automotive trade unions urged the Australian government to want to help the auto industry , in the midst of the shadow of thousands of layoffs if production in the country were closed .
Australian Productivity Commission , Holden chief Mike Devereux insists that only the government can reduce the impact of competition with cheap foreign products . Holden is GM's Australian unit
.
" We need a long-term partnership between the government and the private sector to be able to compete and help GM relative realize his dream of building a place we sell [ products ] , " Devereux says the Productivity Commission . Government-funded independent organization in charge of assessing the condition of the automotive manufacturing in Australia . Devereux said GM wants to streamline its money-losing operations in Asia , but has not decided whether to close two plants in Australia .
Australian Dollar ( AUD ) are strengthened in recent years to help foreign players excel in terms of prices in the local automotive market . Last May Ford Motor Co. said it plans to stop making cars in Australia in October 2016 , with the threat of layoffs over 1,200 employees .
" We are facing an enormous crisis in this country , " said Dave Smith , national secretary of the vehicle division of the Australian Manufacturing Workers' Union ( AMWU ) . The union representing nearly all 17 thousand auto workers in Holden , Ford , and Toyota Motor Corp. . " Government support is needed for the job market . "
This complaint was delivered while support for the Liberal - National government led by Prime Minister Tony Abbott began to fade . Three months ago Abbott was elected to succeed Prime Minister with the promise of economic recovery and stability while Australia can no longer rely on the mining sector . He also vowed to slash the country's debt .
Abbott also has proposed cutting the budget to EUR 40 billion , including removing half of the aid for the auto industry , to around EUR 200 million per year .
But Abbott is now faced with the economic torpor , when efforts to switch from dependence on mining has not shown any sign of progress . Gross domestic product in the third quarter of 2013 rose only 2.3 % on year , much lower than the highest point of growth in early 2012 which reached 4 % .
Along with the drop in investment in the natural resources industry , the Australian government is trying to raise support other economic sectors , such as manufacturing .
If car manufacturing in Australia should be closed , trade unions and the automotive industry lobbyists say the land of kangaroos economy will lose USD 21 billion and unemployment increased 45 thousand people . This impact will be felt in areas such as the manufacturing center of Victoria and South Australia . A report prepared for the Federal Automotive Industry Room said the closure could trigger a crisis as bad as the recession .
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