COMMENT: Consolidation and insolvency loom for Australia’s auto industry

The automotive components sector in Australia is set to see both consolidation and insolvencies as two of the three local car manufacturers end local manufacturing. Ford and General Motors have announced they will stop local production by 2016 and 2017 respectively. In December, General Motors announced its decision to transform Holden from a manufacturer into an importer, following Ford’s announcement in May. According to reports, the third manufacturer, Toyota, could consider moving production away from Australia in the future, although no official announcement has been made.