Major Report for Australian Automobile Indstry

In: Business and Management

Submitted By hynnyhstc
Words 2680
Pages 11
EXC 9210 Introduction to International

Student Name: HE Yining

Student Number: 25401696

Date of submission: 27/09/2013

Q1.Factors behind changes in demand of Auto industry in Australia
There has been a steady decline in Australian's auto industry since the last decade. While there were five car companies residing in Australia previously, now there are only three left, which is Ford, Holden and Toyota, and Ford has announced their closure of manufacturing plant in 2016 (ABC, 2013). This steady decline in the industry is driven by the declining demand of Australian made cars. There are several reasons behind changes in demand for Australia cars in the recent years. One of the reasons commonly stated is the strong Australian dollar compared to other currencies. The higher dollar as opposed to other currencies made it that producing cars in Australia is relatively more expensive compared to other countries. The rising prices of Australian dollar can be seen at this table: Year | Quarter | Yen | US Dollar | Euro | Won | 2007 | March | 94 | 0.79 | 0.60 | 742 | | June | 101 | 0.83 | 0.62 | 773 | | September | 100 | 0.85 | 0.62 | 789 | | December | 101 | 0.90 | 0.61 | 825 | 2008 | March | 95 | 0.92 | 0.60 | 879 | | June | 100 | 0.95 | 0.61 | 975 | | September | 93 | 0.87 | 0.58 | 953 | | December | 63 | 0.67 | 0.51 | 893 | 2009 | March | 63 | 0.66 | 0.51 | 942 | | June | 75 | 0.78 | 0.56 | 988 | | September | 79 | 0.85 | 0.59 | 1034 | | December | 82 | 0.91 | 0.62 | 1065 | 2010 | March | 82 | 0.90 | 0.66 | 1033 | | June | 80 | 0.88 | 0.70 | 1030 | | September | 78 | 0.92 | 0.70 | 1079 | | December | 81 | 0.98 | 0.73 | 1118 | 2011 | March | 83 | 1.00 | 0.73 | 1125 | | June | 87 | 1.06 | 0.74 | 1150 | | September | 82 | 1.05 | 0.74 | 1138 | | December | 78 | 1.01 | 0.75 |…...

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