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Thread: "Job Cuts"

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    Tenneco who supply MMAL with Monroe Wylie Shocks & Walker exhausts for 380 and others to off load 70 odd jobs due to poor sales.

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    Quote Originally Posted by Z456
    Tenneco who supply MMAL with Monroe Wylie Shocks & Walker exhausts for 380 and others to off load 70 odd jobs due to poor sales.
    Yeah I seen that on Ch.7 in the 6.00 news. Ouch, if this 380 doesn't make it or doesn't sell at desired numbers (i'm sure it will will with a few adjustments), the effect to the economy will be contagious. It will not only effect MMAL but every bloody supplier. So while people may think hey Mitsu only employs like 2000 in Adelaide and some more in Sydney, have got it all wrong. In terms of suppliers it will probably effect more like in excess of 8,000 - 10,000 (according to some).

    Honestly I think the government is partly to blame. I just with that they would replace some Police cars across the country with 380's and split an even share between them all. At the same time the government should get off there asses and start advertising how people should 'buy australian' to try and support the local economy (I mean something like 75% of cars sold last year were imports!). They could also raise tariffs instead of reducing them to rise the price of imported cars. It would not only help Mitsubishi, but, all other Australian car manufactures.

    So in this sense if the government don't do anything to promote Australian products (or raise import tarrifs) before it's to late if MMAL or any other Australian car manufacture close down in the future the government should take some share of the blame.

  3. #3
    Killbilly
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    It's not the Govt's fault. They designed a bad looking car...it doesnt sell.

    It's not rocket science, it's MMAL's fault. I don't want to see my tax money going to flog a dead horse.

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    Raising tariffs will only lead to poor quality and uncompetitive australian cars (like the 80's)
    A lot of the police here are using AWD VRX's. Ive seen about 20 in different colours. Why should they suppport Mitsubishi over Holden or Ford? I certainly wouldnt want to get someone cuffed into a 380 rear door without hitting their head but this is besides the point.

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    The government has no responsibility to support car manufacturers. It's ridiculous that people think that everything is the government's "fault". If a company can't survive without handouts, then why should we continue, as taxpayers, to prop them up?

    Yes, it is sad that Mitsubishi is in trouble, and yes, it will be a shame if a lot of people lose their jobs. However, Mitsubishi head office made a conscious decision to give MMAL a limited budget to develop the 380. Therefore, the company dug it's own grave.

    Personally, I think the 380 is a reasonable car. It won't set the world on fire, but then again, neither do the Commodore or Falcon. The problem with Mitsubishi is that it has a tainted history and a dowdy image. To overcome the perception problems, they needed a car that was 50% better than everything else, not just equal to everything else.

    I still believe that Mitsubishi should stop chasing the "big" car market, and concentrate on the medium car market. If they built the Galant (tuned to Australian conditions), they would have been on a winner. They should be competing with Honda, Subaru and Mazda, not Ford and Holden.

    Edit: Spelling mistake

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    Quote Originally Posted by Gekko
    The government has no responsibility to support car manufacturers. It's ridiculous that people think that everything is the government's "fault". If a company can't survive without handouts, then why should we continue, as taxpayers, to prop them up?

    Yes, it is sad that Mitsubishi is in trouble, and yes, it will be a shame if a lot of people lose their jobs. However, Mitsubishi head office made a conscious decision to give MMAL a limited budget to develop the 380. Therefore, the company dug it's own grave.

    Personally, I think the 380 is a reasonable car. It won't set the world on fire, but then again, neither do the Commodore or Falcon. The problem with Mitsubishi is that it has a tainted history and a dowdy image. To overcome the perception problems, they needed a car that was 50% better than everything else, not just equal to everything else.

    I still believe that Mitsubishi should stop chasing the "big" car market, and concentrate on the medium car market. If they built the Galant (tuned to Australian conditions), they would have been on a winner. They should be competing with Honda, Subaru and Mazda, not Ford and Holden.

    Edit: Spelling mistake
    fully agreed...
    it annoys me how people want the govt to create an unfair playing field in the aussie market. that just means consumers get a bad deal.
    why shouldnt imports sell at least 75% given the limited range of vehicles produced in australia

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    I guess part of the reason in rise in people going for imports is that the only locally produced cars are large family sedans.

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    Is it better for the government to pay $100 million to a business or $100 million in welfare payments (10000 people X $10000 for 6 months unemployment)?

    People aren't buying large cars because of high fuel costs. The government should encourage LPG, diesel, hybrids or smaller cars. Also increase tariffs on 4WDs except for rural residents .... at least turn people from 4WDs to Australian cars.

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    Quote Originally Posted by thatdbeme
    fully agreed...
    it annoys me how people want the govt to create an unfair playing field in the aussie market. that just means consumers get a bad deal.
    why shouldnt imports sell at least 75% given the limited range of vehicles produced in australia
    This is a valid arguement when every country plays by the same rules. At a time when the government is rationalising our industries, reducing tariffs and encouraging free trade agreements, our trading partners are taking advantage of the situation to gain market share. Most Asian countries still impose huge tariffs on goods, especially cars, imported from Australia while at the same time demanding that we allow them greater access to our market.

    Perhaps the answer is to match trade tariff for trade tariff? You put a 150% tariff on our cars (Malaysia), and we do the same to yours. Or maybe do what Europe did and impose a limit on the number of imports allowed into the country? We have the greatest selection of cars available to us than any other western country, which, for our population size is just crazy. Surely some could go without affect the market.

    The sad fact is that our motor industry is the last major manufacturing base we have in this country. Everything else has gone off shore where labour costs are cheaper. No one wants to see the car makers given hand outs, but the loss to the country if they leave would be devestating. To make matters worse, the government is talking about allowing major car imports from China in the near future. What do you think that would do to the sales of local cars?
    Growing Old Disgracefully

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    Snagglepuss, the loss of manufacturing jobs from Australia is inevitable, whether tariffs are raised or not. The fact of the matter is that you have two options if you are a small economy.

    1. Open the floodgates and build an economy where you specialise in niche, high tech markets (e.g. Singapore), or alternatively, become very good at one or two things (e.g. the Banking and Insurance industry in Switzerland); or

    2. Hike up tariffs, under the banner of "fair competition". Then watch as your industries become stale, uncompetitive, overpriced and arrogant. Eventually, when gov't handouts run out, the industry collapses. Look at the car building industry in the UK. Also, remember Australia in the 70's and early 80's? If high tariffs still existed in Australia, would the Falcon and Commodore be the cars they are now? They'd still be producing cars with pushrod engines, drum brakes, and live axle rear ends

    As for your European example, Europeans pay overinflated prices for goods in the name of saving European jobs. Food in Europe remains at artificially high prices, to pay farmers a "decent" wage, which in turn encourages them to produce too much food. To counteract the production of too much food, other farmers are paid NOT to produce! The crisis grows daily, yet the system is so entrenched that politicians are too scared to change it. Eventually, something will give way. When it does, it will be a huge disaster. Government meddling in the economy always ends in trouble. There endeth the economics lesson

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