News that Ford intends to close it's Geelong engine plant in 2010 with the loss of six hundred jobs illustrates the changes that have occurred in the Australian car market.
This Ford plant produced the in-line six cylinder engine that powered the Ford Falcon - which, along with the Holden Commodore - used to dominate the family car market in this country. Conventional wisdom had it that these two cars would not only dominate the commercial market of company cars and taxi fleets - but also the cars Mum and Dad bought to accommodate the family needs.
Things have changed - and the sharp increase in petrol prices have seen a shift down to the four cylinder compact car for those concerned with economy - and a surprising shift up market by former Holden/Falcon buyers to big SUV vehicles as people movers.
More change is on the way. European car makers have developed the diesel engine to the point that it is now giving a good family car performance - and amazing economy.
Forecasting the future depends on a huge number of unknown factors. It is likely that the government will eventually legislate to make an ethanol mix compulsory and that the use of liquid auto-gas will continue to expand. We would be wise to embrace the diesel engine because in the event of a future oil shock this country is capable of producing a bio-diesel fuel to cushion cost/supply problems.
It is also time that local car manufacturers had a long, hard look at introducing an Australian made compact car to service the trend that has clearly emerged. If the day of the big six is coming to an end, then there needs to be a locally made replacement to both preserve our balance of payments - and at the same time retain jobs in the Australian car manufacturing industry.
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