EXPORT DRIVE BY MOTOR INDUSTRY

Press, Volume CVIII, Issue 31587, 26 January 1968, Page 12

EXPORT DRIVE BY MOTOR INDUSTRY

The Australian motor vehicle industry is taking part in a multi-million dollar export business with its products used on every continent. Its vehicles are being driven on all types of roads and under all sorts of conditions—in countries straddling the equator and in polar regions, too.

Australian - made components are now sold to more than 85 countries, and Australian engineering knowledge is helping to develop vehicle industries in nearby Asian countries. All this has come about within a couple of decades. From a fledgling industry it has grown since the late 1940 s into one of the world’s sophisticated vehicle manufacturing centres.

This sophistication is probably best demonstrated in the way Australian know-how has gone into setting up assembly plants in South Africa, Indonesia, the Philippines, the Caribbean, New Zealand and now in Pakistan.

More specially, Australian components are finding a ready market in overseas areas. A case in point is the complicated torque converter component for automatic transmissions. Australia is the sole supply source of these components in Germany and for Vauxhall in England. There are less than a dozen countries in the world which manufacture vehicles on any appreciable scale, because volume is one of the prerequisites for economic production, just as production itself is dependent on ready availability and quality of supplies. Australia’s relatively small volume potential is largely counteracted by its very high vehicle usage. Australia, in fact, is the fourth highest motorised country in the world. Variety There are now almost four million cars on the road in Australia, or one car for every three Australians. Australia offers one of the greatest varieties of models and makes of any country in the world. There are about 15 vehicle producers in various stages of manufacture and assembly. The two biggest, General Motors-Holden’s Pty, Ltd, a subsidiary of General Motors Corporation, and Ford Motor Co., of Australia, Ltd, a subsidiary of Ford U.S., have more than 55 per cent of the total market between them. Biggest share of the Aus-

• tralian market is held by i General Motors-Holden’s with ■ 37.8 per cent in 1966. Next ■ biggest was Ford with 18.1 i per cent, Chrysler 13.4 per cent, British Motor Corporation 11.9 per cent, Australian : Motor Industries 4.8 per cent, . Volkswagen 4.8 per cent, ; Nissen-Datsun 1.7 per cent > and International Harvester ; 1.3 per cent. The last couple of years has seen a vast collection of new models with Ford’s new Falcon range making the biggest impact. This year, the light car class (cars under SA2000) has had about half a dozen new models, and there are more still to come. The manufacturers have spent about SASOO million between 1946 and 1966 in establishing production facilities. Currently, vehicle output is about 400,000 units a year. Revenue As in other highly industrialised communities, the motor industry has a great impact on Australia’s Internal economy. The vehicle manufacturing industry is a big source of revenue to the Federal Government, providing 8A131.5 million last year. This was made up of SAIOB million in customs and excise, $A21.5 million in company taxation and SA2 million in payroll taxation. The industry is a huge customer for a variety of basic materials. As a result, it exercises influence over the bulk of the secondary workforce. About one tenth of the Australian workforce is dependent upon the motor industry for its livelihood. Last year, the industry purchased from local sources 221,000 tons of steel, 8.5 million tons of forgings, 10 million square feet of safety glass, 2.5 million gallons of paint products, 1.8 million tyres and 365,000 batteries. Value of the industry’s output is about SABOO million a year. Since exports began in tbe mid-1950’s motor vehicles have earned Australia more than SAISO million in foreign exchange. Industry observers expect

that during the mid-1970’s the rising standard of living in Asian countries will lead to a short uplift in demand for Australian-produced vehicles. The main markets now for vehicles and parts are New Zealand, Malaysia, South Africa, New Guinea, the Philippines, Hong Kong, Nigeria and Fiji. The growth in vehicle exports has come only in recent years. Around 1961 and 1962 Australia was exporting about 8000 units a year. In the last couple of years it has been around the 27,000-28,000 mark. Australia’s biggest and growing source of car imports is Japan which, last year, shipped more than 22,000 units to Australia. Toyota, which assembles the Crown and Corona through Australian Motor Industries, is Australia’s fifth biggest vehicle seller. Japan, in fact, exports nearly 10 times as many vehicles to Australia as does Britain, the second biggest vehicle source. Last year, Britain, shipped 2285 units. Next was Germany with 1565 units, Italy with 1418 units, the U.S. with 548 units, Sweden 245 units, France 112 units and Czechoslovakia 120 units. Capital Some of the world’s biggest automotive suppliers have been attracted to Australia's developing motor industry. Timken Pty, Ltd, the subsidiary of Timken Roller Bearing Co., of Canton, Ohio, has invested about 5A2.5 million in Victoria. The unground components of tapered roller bearings are shipped to Australia from America or Canadian plants for heat treating, grinding and final assembly. Borg Warner, manufacturer of transmission, axles and differentials, has a factory in Sydney covering 220,000 sq. ft. It employs about 1000 people and is now engaged in a BAI6 million expansion programme. The largest manufacturer of parts and tools is Repco Ltd, an Australian-owned company that has been making quite a name for itself overseas. It has had a great deal to do with the current success of the racing driver, Jack Brabham. The success of the Repco-Brabham on Grand Prix circuits has earned for Australia a growing reputation in engineering techniques.