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Motor vehicle manufacturers are being lapped by import competition and have decided to leave the race altogether. A perfect storm of consumer demand shifting away from locally manufactured vehicles, a high Australian dollar, tariff reductions and subsequent low local production volumes have decimated the industry. The global financial crisis instigated a sharp drop in new car sales in 2008-09. While new car sales recovered, sales of locally manufactured vehicles did not. With unprofitable operations due to low production volumes, Toyota, GM Holden and Ford have all announced intentions to exit the industry. While the industry is forecast to be worth $10.6 billion in 2013-14 following a 5.0% annualised decline, the major player exits are despite a forecast decline in revenue of only 0.9% over 2013-14.
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