Australia's automotive component industry fundamentals remain intact

摘要

Much has been written of late regarding the future viability of Australia's automotive component industry. The recent conjecture has been triggered by the collapse of automotive parts markers Huon Corporation and Ajax Fasteners. These collapses have been attributed to the increased cost of steel, fierce competition from low cost producing countries such as China and India, and the impact of fuel price increases on demand for large Australian built V6 and V8 passenger motor vehicles. The reality is that the Australian component industry has known for some time now that it is heading for a period of adjustment and rationalisation. The current record steel price is for some companies the straw that has broken the camel's back.