Has Covid 19 Delayed Car Manufacture?

The last 18 months have strip-mined most industries, and the auto industry has not been immune. I was reading through some forums recently, and was bemused to see discussions suggesting a drastic fall in a particular model meant that segment was failing.

The members referenced a story where the writer quoted Golf as having fallen 90%.

That was the only accurate statement. The writer went on to say that the Golf was on its way out. That’s rather like adding 1 and 1, and getting elebenty. Without further data, no conclusion can be drawn.

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Let’s look at that example more closely:

Golf 7.5 was no longer being manufactured, so was in runout. Golf 8 was delayed for several reasons, Covid being one of them. Covid has played havoc with “just in time” production lines. Why? Car makers don’t keep vast warehouses of parts, so any single delay has a knock-on effect.

Furthermore, Australia’s rubbish, low grade local fuel has also been of some consternation.  Add to that, the lack of government support for electric drive trains, and you get a picture at odds with government claims.

Other brands have had issues with individual models, which often depends on which country the factory is located in. After all, Australia is a very long way from everything. In fact, some models have been delayed so that the brand could stockpile the new car over several months.

Here, it would be churlish not to point out that Australian car manufacture was killed off by the Liberal-National government. PM Tony Abbott, aka The Village Idiot, dared Holden to leave, so, they did.

The government has continued to support its “darling” industries such as mining, and anyone else who is a party donor. They get generous subsidies, tax breaks, and gifts. Gas-led Covid Recovery my arse!

But, there’s more:

There has been no leadership or certainty in CO2 reduction since the Gillard Government’s carbon pricing scheme. That scheme had significantly lowered CO2 levels, but was axed by The Village Idiot in a fit of spite. This means no support for electrification, with some states adding an EV tax, in world’s worst practice.

Many Australian car makers have told us that the great Southern Land is at the end of the line when it comes to new model consideration because of:

  • the dirty, high-sulphur local fuel
  • lack of government support
  • distance from the site of manufacture
  • government resistance to change.

In short, there are many reasons a model or brand has low sales. Sometimes, there are many external factors at play, and other times, the model is just rubbish.

Figures are on the way up after years of decline, so watch this space.