4 June 2015
The new car sales slump highlights the folly of the automotive industry being allowed to depart Australia’s shores, according to major engineer lobby group, the Association of Professional Engineers Australia (APEA).
The latest figures for new car sales in May showed a slump in new car sales, with Toyota, Holden and Ford recording large drops amongst the top ten sellers, at 7.6%, 11.7% and 13.8% respectively on this time last year.
The CEO of the APEA, Chris Walton said that these figures demonstrate millions more in revenue is leaving Australia shores each year and thousands of jobs lost.
“The drop in volumes across these manufacturers represents a slump of more than 2500 cars, and one has to ask if the Australian consumer has made their judgement.
“That’s more than an additional $75 million this last year leaving Australia’s shores to companies with no manufacturing presence in Australia.
“The sales of the Holden Commodore, slumping 16.3%, or more than 300 units, might be instructive. After decades of making profits from Australian consumers, the public now feels abandoned and they’re leaving loyalty at the door when they go shopping.
“This reflects the stupidity of the government’s decision to throw support for the automotive industry into the waste bin. Sales of the Mercedes Benz C Class now outweigh the Falcon,” Mr Walton said.
The APEA highlighted that these figures are released at a time when the Australian dollar is falling and wage growth stagnant, amounting to the best operating environment for manufacturing in Australia for many years.
“The Australian operating environment for manufacturing is the best it has been in years. We have consistently advocated that advanced manufacturing is a critical sector for Australia’s economic future.
“These figures highlight that now is the time to invest and build a diverse, modern economy, not wait for the next mining or construction boom”.
“Australian automotive engineers are among the best in the world and many have been approached to move overseas.
“Now is the time to invest in advanced manufacturing opportunities. The APEA has advocated for government support to see the retention of automotive design capacity in Australia, as Ford has done in its Product Design Centre. Every $1dollar spent in manufacturing generates $4 in the wider economy.
Media contact: Jessica Kendall 0414 679 857