The next big think

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Artwork: Tom Jellett
Neil Dowling
Contributing Journalist
20 Jun 2008
3 min read

Within three years, production-line workers will build cars with names they can't pronounce.

It's nothing new but when the Russians start pumping out Mitsubishis and Peugeots and Citroens, it is another step in the process that sees car makers move out of their backyard and onto foreign soil.

The reasons are cheap.

Picking a developing country with available employment, low yet aspiring standards of living and government incentives such as free land and tax breaks is the financial equivalent of a Stephanie Rice wall poster.

And there's no reason to feel shy about deserting the homeland in search of reduced manufacturing costs even if Porsche boss Wendelin Wiedeking is scathing of the practice — though the Cayenne body is made in Slovakia — and says so in his new (only) book “Don't Follow The Crowd”.

Look around.

You probably know it because you're on the carsguide.com.au site, but most car owners haven't a clue where their metallic ego in the driveway was born.

The Honda Accord and Jazz are from Thailand, the Volkswagen Caddy in Poland, the Suzuki APU (named after the 24-hour shop owner in The Simpsons?) van in Indonesia, the Chrysler Grand Cherokee in Austria — on the same line as the BMW X3, no less — the Volvo XC70 in Belgium and the Volkswagen Golf, Ford Focus hatch and BMW 3-Series four-cylinder models in South Africa.

As these countries grow richer on their ability to make cars cheaper for the world, so their prices — of labour and taxes and energy — will rise.

Are there any countries left that have even lower costs that car makers can exploit? While you sift through the Atlas (get a current one, some countries and borders have changed in the past decade) let me tell you about one that has it all.

And only recently is word out that this could be the next big think in car manufacture.

Unlike Russia or Thailand or Slovakia, this country has English as its predominant language.

It has an able workforce and rising unemployment.

Its needs are many because the country has high consumer goods consumption.

Yet the workforce — perhaps through desperation — can be turned to receive a modest wage.

There are tax breaks and land going on offer throughout the country, most close to the ocean or rivers for easy transportation of raw materials and finished product.

The icing on the cake is that it has existing infrastructure to support car assembly.

The country is the USA.

Now the focus turns from outward looking to the manufacturing equivalent of navel gazing.

Now European countries have seen a weakened USA become ripe for domestic manufacture.

The US dollar is so weak that it makes importing European cars too expensive.

Far better to look at camping on US soil, in the way a cuckoo camps in another nest to exploit its personal needs.

While General Motors seeks manufacturing in China, Volkswagen is looking at the USA.

Volkswagen is not alone, European suppliers are also sniffing out what the USA can offer.

The tide has unexpectedly changed and perhaps the only hindrance will be a revival in the US economy.

Preoccupied with the 'war with no end' in the Middle East, the US is poised to become the world's next big car factory.

Who would have thought that possible?

Neil Dowling
Contributing Journalist
GoAutoMedia Cars have been the corner stone to Neil’s passion, beginning at pre-school age, through school but then pushed sideways while he studied accounting. It was rekindled when he started contributing to magazines including Bushdriver and then when he started a motoring section in Perth’s The Western Mail. He was then appointed as a finance writer for the evening Daily News, supplemented by writing its motoring column. He moved to The Sunday Times as finance editor and after a nine-year term, finally drove back into motoring when in 1998 he was asked to rebrand and restyle the newspaper’s motoring section, expanding it over 12 years from a two-page section to a 36-page lift-out. In 2010 he was selected to join News Ltd’s national motoring group Carsguide and covered national and international events, launches, news conferences and Car of the Year awards until November 2014 when he moved into freelancing, working for GoAuto, The West Australian, Western 4WDriver magazine, Bauer Media and as an online content writer for one of Australia’s biggest car groups. He has involved himself in all aspects including motorsport where he has competed in everything from motocross to motorkhanas and rallies including Targa West and the ARC Forest Rally. He loves all facets of the car industry, from design, manufacture, testing, marketing and even business structures and believes cars are one of the few high-volume consumables to combine a very high degree of engineering enlivened with an even higher degree of emotion from its consumers.
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