New Car Manufacturing in Australia: Is the ship sinking?
The Australian new car manufacturing industry is on its knees. If we were discussing a horse race, the likelihood of the industry surviving the next decade – in particular the survival of two of the three players – would be, to put it mildly, a long shot. If the Australian new car manufacturing industry were a patient in a hospital, sooner or later a rational discussion about maintaining ongoing life support, and having the priest on speed-dial, would need to be made.
Let’s have that discussion now.
Above: Autopolis managing partner John Wormald
Just over a year ago, John Wormald, the principal of respected international automotive think tank and government advisor, Autopolis, declared that Ford Australia would be “the next Mitsubishi”, a reference to Mitsubishi Motors Australia Limited’s withdrawal from local manufacturing a few years earlier. Mr Wormald said this would occur because Ford Australia, among the three local manufacturers, was the most isolated from its parent company’s operations.
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Mahindra to launch Ssangyong Kornado and Rexton in India
India’s largest SUV manufacturer Mahindra & Mahindra has confirmed that it will launch Ssangyong Korando and Rexton in India by mid next year. Mahindra recently bought 70% Ssangyong Motors of South Korea in a multimillion dollar deal which is going to be completed by March next year. Ssangyong Motors manufactures premium SUVs Kornado and Rexton which are highly popular in United States of America.
Ssangyong Kornado
Ssangyont Rexton
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Mahindra on a shopping spree – to bid for Ssngyong Motors of Korea
Homegrown automaker Mahindra & Mahindra is expected to bid for the ailing Korean firm Ssangyong Motors. Ssangyong Motors filed for bankruptcy last year after Shanghai Automotive International Corp (SAIC) failed to help during the crisis. SAIC which owned 51% share has now only 10% of its share in the Ssangyong Motors.
Ssangyong Motors has a good presence in US markets which Mahindra is eying for a long time. Two SUV models Rexton and Kyton of Ssangyong Motors are already in the US markets which would help Mahindra to gain entry as an exclusive SUV manufacturer if the deal goes through. However the top officials at Mahindra refused to comment anything on the issue. The deal is expected to be valued at $100 to $300 million dollars.
Source: ET
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