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You don't take into account emerging technology like 3D printing. It's not quite there yet for mass production, but there is no reason we can't be one of the first to develop its full potential. You don't change dies, you just change a computer program.
I don't think so. People are looking for quality which is why Mercedes and BMW are so popular. We could compete on price against those makes using better technology than is currently in our old factories.
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That idea has merit, however you are sugesting replacing the existing manufacturing technology with new, also the output capacity would have to increased massively.
It would probably be cheaper to build new manufacturing facilities and use the existing for low volume products.
The one major difficulty I see is how do you compete with the overseas manufacturers established in low cost countries. Could you keep your costs under control?
For example all VW Golfs imported into Australia, are made in South Africa, VW Polo is made in China and the VW Jetta is made in Mexico.
You could try going back to 57% import tarrifs, but that would have huge inflationary effects and due to the floating dollar an international backlash.
If someone like BHP had decided to buy out Chrysler Australia, in the 1970's when they closed, and get into car manufacturing it might have worked.
They owned raw material, steel processing and energy reserves, but really would you want to start dealing with extra hassle.
It all boils back to the fact it is difficult to do business here, everyone wants to be on $100k a year.
The politicians are just the same, they want ludicrous entitlements and $200-500k a year, because they have the gift of the gab.
I don't think it is going to end well for them either, Federal politicians, State politicians, Local councils.
They have to be rationalised also.IMO