GM Exec: Australia Is 'Just Too Small' To Sustain Car Manufacturing

Getty/Robert Cianflone

There has been much political fallout and blame about who’s responsible for Holden’s exit from manufacturing in Australia. The South Australian Government thinks the federal government could have done more the opposition reckons that it was Treasurer Joe Hockey’s goading of General Motors on the floor of parliament.

Today however in an interview with Stefan Jacoby, the new head of General Motors International Operations put the whole debate into perspective. Australia is just too small a market to be building its own cars.

Jacoby told Carsguide:

“We understand also that this decision has an impact on the entire automotive industry in Australia…Local production, even if would be a pure assembly (operation) doesn’t make any sense.

“Our business is driven by scale of economics, of productivity, of an efficient supplier industry… optimised logistics… Australia is just too small in these scales.”

Seems that neither side of politics or no amount of handout could have stopped the exit.

You can read more here.

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