End of Australia’s Car Industry

The last car , a General Motors Holden, has come off the production line in Adelaide, Australia.  It ends a 90-year long era of car manufacturing in Australia.  At its peak, the Adelaide factory built almost 800 cars a day .

GM Holden is a subsidiary of GM . The closure of Australia’s last car factory will not only leave almost a thousand workers without a job, but also endanger industries that produce parts for Australian-made cars.

Holden has been an Australian national symbol for many decadesThe company, which started out as a family business in the mid 19th century, was bought by General Motors  in 1931. In 1948 the FX Holden became the first car to be  mass-produced in Australia. By 1960, every second car manufactured in Australia was a Holden.  The company’s most popular car was the Commodore,  which was introduced in 1978.

Since World War II a number of foreign auto manufacturers, including Toyota, Mitsubishi have opened and closed car production plants in Australia. Ford shut down its last plant a year ago.

There are many reasons behind the decline of Australia’s car industry.  Through free trade agreements automobile makers no longer have benefits when producing in Australia. Other reasons are high wages and production costs   as well as  a small domestic market of 24 million.

As the  Australian dollar became stronger  the country’s exports became  more expensive. Holden cars became less competitive , while imported foreign cars were cheaper . Since 2001 Australia’s government has been pouring in  $ 5.5 billion into the car industry.

Even though Australia’s car industry has come to an end , the GM Holden will still be available from other manufacturing plants around the world.

GM Holden Caprice, produced in 2007
GM Holden Caprice, produced in 2007

Words

  • agreement = when people, companies  or countries promise to do something
  • available = it can be bought
  • benefit = advantage, help you do or get something
  • century = a hundred years
  • competitive = to be more successful than others
  • closure = to be closed
  • decade = ten years
  • decline = when something becomes less important
  • domestic = home
  • foreign = from another country
  • endanger = to put something in danger
  • era = period of time
  • foreign = from another country
  • manufacture = produce, make
  • mass-produce = to make something in large numbers so that it can be sold cheaply
  • peak = when it was most successful
  • plant = factory
  • pour = here: give
  • production line = products move along  a line of workers who make or check each part
  • subsidiary = company that is owned or controlled by a larger company
  • wages = money a worker gets every week or month