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Decline of Australian Car Manufacturing and its Impact on the Local Industry
The Australian car manufacturing companies have been falling down consecutively from 1998-2012 a throw research and development is made by the journalist on intensive manufacturing industries. The demise of the car industry in Australia has grown largely that has led to unemployment for many employers, employees, and labor. The aim of the government is to cut down automotive tariff so that Asian competitors see as unworkable has sent the new vehicle into turmoil the plan of cheap tariff seemed as if it was working. In order to sustain local Industry the people liked the discount facility introduced on cars and increase employment in local industry putting discount facility for production of cars.
Factors Contributing to the Decline of the Australian Automotive Manufacturing Industry
The reason is still not clear but the reason may be there is a possibility of the policy introduced by the government has led to the end of the production of cars, that the policy introduced by the Australian government. In spite of benefiting consumer and local people, it was hard for industry as the discount facility on cars put a responsibility on companies about putting quality cars with cheap price. The producers could not cope up with the responsibility shouldered to them of producing good quality product for cheap price such as the quality ultimately decreased of the cars as the items used for producing car were cheap quality and not up to the mark this has led to customer dissatisfaction among local people and customer and hence their belief in product decreased. Another reason behind the downfall of the automotive manufacturing Industry was the quality of work was affected by the policy introduced by the government also stated that there must be an involvement of local people in production.
Challenges of Local Employment: Impact on Quality and Efficiency in Car Manufacturing
The local people must be employed that will reduce down employment and increase productivity at least that is something government thought and the exact opposite happened the quality of the cars were lowered down as the workers were not skilled and efficient enough. In order to handle the, the engineering part engineers were recruited but employing some professional engineering with the limited budget and making the local people learn the process would not be enough as the quantity of the locals were large in numbers and hence it would not be sufficient. It is a common known fact that an organization success largely depends on corporation, learning, implementing in order to run a business in profit.
Challenges in Implementing Profit Theory and Government Policy in the Car Manufacturing Industry
The Profit theory must be present and followed in an organization and that was lacking there are even phases for production of cars or any other product such as Forming, Storming, Norming, Performing without completing this process no organization can succeed. However, this process was never completed and therefore the policy introduced by government failed to comply with the plan that was forecasted. The plan was good to cut down competition and make the consumer beware of the product introduced in their own country there will be increase in the import and export. A proper analysis must be made before implementing this plan to know about the efficiency that the country is possessing as there is a difference between skilled and unskilled worker. There is also a reason behind why car-manufacturing industry could not comply with the policy of the government that lead to the closure of company first is that the car manufacturing industry is too small and it becomes difficult for the industry to exploit the scale of economy.
Factors Contributing to the Downfall of Australian Car Manufacturing Industry
The factor that also led to the downfall of the organization is demand for payment of higher wages that is not possible for manufacturing industry to comply with even after giving so much facility such as employing workers that are not skilled enough at least in the field of manufacturing cars. Union even asks for better working conditions that are not possible for companies to put effort into, as the company cannot handle more responsibility and expenses. The pressure of both government policy and union has affected manufacturing companies in Australia in December 2013 the Prime Minister Warren Truss, Treasurer Joe Hockey decided to close down the car industry, and that has been done without even conducting any kind of vote in house. The treasurer wiped out 70 years of achievement and accumulated industrial capacity in an instance and affected 200,431 workers job the workers ran out of money caused a wide unemployment in Australia . The Australian car manufacturing company is running in loss compared to other companies that are doing business in Australia and the government policy has failed the car's manufacturer of Australia in achieving that the companies ever dreamt of. The government plays most of the role regarding the end of Australian companies that manufactures cars, if it was not for the government policy then the company would have still existed in the market.
Corporate Social Responsibility and Market Impact: Lessons from the Australian Car Manufacturing Industry
The company itself follows some rules and code of conduct and knows to act in accordance with situation. Company knows it has to follow some corporate social responsibility to exists in the market and it definitely knows that to exist in the market and cut down competition. It has to introduce some facilities that will benefit the consumer and that in turn will have positive impact on business and hence it is proved that interference by different party into business will only lead to demise and not only it will affect the company and workers but the entire country will be affected. It is because of the demise of the car manufacturing companies that the three multinational automotive manufacturing companies like Ford, General Motors, and Mitsubishi, had left Australia automotive market, and in Australia had followed the loss for quite a long time now in terms of local automotive industry . After giving attention to public discourage in case of Industrial relation and union the foreign companies belonging from Tokyo and Detroit were not anymore participating in the market as it was failing to grab customers of Australia and closing down the production in Australia. Another reason behind the downfall of the car manufacturing companies of Australia is that there is no collaboration between the company and labor there was a continuous increase in the argument between the automotive company and unions.
Downfall of Australian Car Manufacturing Companies: Labor Conflicts and Government Policies
The continuous conflict between the company and labor had led the downfall of the car manufacturing companies the problem behind the rise in conflict between the union and the organization was that proper recruitment was not made any background research was done on the labors while recruiting them . It is a fact that most people in Australia forgot that there were even companies that manufactured the car in Australia, after a proper and brief research it was found that all company that once set up its industry in Australia left because they did not find it comfortable to act with the policy as described the government . General Motors decided that it could take no more and decided to announce that it is quitting manufacturing cars in Australia it was after twenty-four hours that they quit because of the assault made by the parliament; Toyota also quit the manufacturing process after two months after the date General Motors left the company. Former labor ministers, Greg Combet regretted the fact that the labor will face a lot of pressure regarding their lifestyle and he was the Industry minister while ford was quitting
From the above details, it is known that it is the government that has led the downfall of the automotive manufacturing company. The scheme it introduced did not match up the expectation that the government forecasted, and the time labor needed the support of government, the government did not show up and instead closed down all the company that was manufacturing cars in their country. It is through government that the company had to quit because the sale of cars lowered down because of the cheap material that the company had to use to get the most out of little budget as the government declared the discount facility scheme that forced the company to produce a cheap quality product. It is because of the government that the company had to employ labor with lower skill and possessing not much of a knowledge regarding the work to be done in company. The company faced the difficulty such as they had to increase the wages of the workers because of the pressure that union was creating and having low budget it was difficult for companies to match up the expectation of the labor, for providing a better working condition. Hence it is known from the fact that government is the only one responsible for the demise of automotive manufacturing companies in Australia. Therefore, to avoid the same thing happening in future the government should focus on not implementing any policy that will force them to leave the country as they play an important and a huge role in development of the country. The government should act for the company and not against the company that is it should not act in a way that its policy becomes obstacle for the company.