Car industry

What superficially looks like a Volkswagen affair, is actually a more systematic problem of German industrial policy.

Volkswagen’s admission of having systematically manipulated emissions results of its cars has not only plunged the world’s second-largest car manufacturer into crisis, but it is also causing damage to Germany’s international reputation. But why is anyone surprised?

Volkswagen’s power struggle could turn the world’s second-largest car manufacturer into a de facto nationally owned company.

The question marks hanging over the future of Holden and Opel are substantial. It is courageous, in the ‘Yes, Minister’ sense at least, of any government to subsidise carmakers in these circumstances.

Holden’s outrageous pay deal is just the tip of an iceberg of wasted subsidies. Australia needs a car industry as much as Germany needs its own black coal mines.

A car industry is only worth having if it is able to stand on its own feet. Keeping an industry alive for the sake of having an industry is economic folly and a waste of taxpayers’ resources.

A car industry is only worth having if it is able to stand on its own feet. Keeping an industry alive for the sake of having an industry is economic folly and a waste of taxpayers’ resources.

Australia should study the German “environment premium” example closely in the debate over the Prime Minister’s “cash for clunkers” proposal. It was one of the most bizarre and wasteful programs ever to be implemented by any government. Instead of scrapping hundreds of thousands of perfectly functional cars for imaginary benefits, the Prime Minister would be better advised to scrap her lunatic proposal.