The world started globalising five hundred years ago and the writing has been on the wall for high cost producers ever since.
No firm, and no government either, can subsidise a business indefinitely. The resources employed by a firm, must add more value to the process than they cost. The price that the firm must charge to achieve this must be lower than or equal too its competitors.
Of course there are other factors which can help you, quality, design and service all count for something. If that was not true then Apple wouldn't be in business. However you must in the long run be competitive somehow,
The car industry is a global industry. The same models are sold worldwide and there are plenty of manufacturers able to make them at the required quality. Australia simply can't compete in terms of costs or scale with virtually any of them.
Despite calls for government protection the car industry can't survive in Australia. And protection will cost jobs in the long run, not save them. If good government money is thrown after bad it will mean that resources are diverted from profitable, long run investments that will create the jobs of the mid 21st Century.
GM have explained their decision to pull out of Australia. The Age reports it below.
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