Automotive industry is alive and thriving in Australia

The death of the Australian automotive industry may have been at least slightly exaggerated. Either that or it’s having an unexpected zombie resurgence, with more people currently working in car manufacturing in Victoria than in the days when Holden and Ford were still making vehicles here.

The Big Two and their Commodores and Falcons might be gone, but in their place many new automotive companies have risen and are now employing even more people than the big name brands did in their final years.

Nissan Patrol Warrior, designed to go to the most rugged and remote places with ease
Nissan Patrol Warrior, designed to go to the most rugged and remote places with ease

Conservative estimates suggest more than 1500 Australians are currently employed in the growing range of automotive operations such as Walkinshaw Automotive Group and Premcar. That compares to approximately 1500 employees Holden and Ford had on the books when they shut down local manufacturing operations in 2016 and 2017.

Throw in smaller operations like Jaunt Motors, which converts traditional combustion-engined cars into electric ones, and Savic Motorcycles, which is building an Australian electric motor bike, and the industry is now bigger than it was when its death knell was declared.

There are a range of factors behind this rejuvenation but a large part is the modern obsession with American-style pickup trucks and large SUVs in general. That’s the core business for Walkinshaw Automotive Group, which employs more than 1000 workers to convert (or “re-manufacture” as they prefer to call it) Chevrolet, Ram and soon Toyota US pickups from left- to right-hand drive.

On top of that, Walkinshaw, which previously established its reputation as Holden Special Vehicles, also produced the Volkswagen Amarok W-Series special edition ute, and will be responsible for the similar Mitsubishi Triton Xtreme.

Melbourne-based Premcar is another company that reinvented itself in the aftermath of Ford’s decision to stop making the Falcon. During Ford’s glory days, Premcar was the brains behind the popular Ford Performance Vehicles brand, so it has taken that expertise in local tuning and enhancement of cars and shifted to another brand.

Premcar has been working with Nissan, initially on the Navara ute and now the Patrol SUV, creating the imposing Warrior models, designed to go to the most rugged and remote places with ease.

Premcar, which also has contracts with the defence industry, already employs 150 people on its manufacturing side and is reportedly looking to expand. But beyond that, Premcar is helping to support the wider manufacturing industry by working with local suppliers, rather than overseas alternatives.

“One of the great things we did with the car was we used our local supplier base for 80 per cent of the content we’ve added to the car,” explains Bernie Quinn, Premcar’s engineering director.

“The unique Warrior content is sourced locally, manufactured locally. We’ve used all of those suppliers we used to use back in the day [with Ford].

“It’s a great story about the rejuvenation of the Australian manufacturing scene, too. We’re really proud to be part of this.”

Ford Australia may be in the process of reducing its engineering workforce locally but it is growing its manufacturing footprint. It has partnered with RMA Group, which previously specialised in converting Fords for military, police and mining work, to convert the iconic F-150 pickup to right-hand drive.

Ford says around 250 workers have been hired for this project initially, but with obvious room to grow. The F-150 is the best-selling vehicle in the US so there’s reason to hope it will be just as popular as the Chevrolet and Ram models.

The initial plan only features a limited range of just two variants, but there are several other F-150 options available in the US that could be part of an expanded Australian operation, such as the high-performance Raptor and all-electric F-150 Lightning.

Beyond that, if Ford sees the potential for more local conversions, there are options like the Bronco SUV, expanding the potential for even more people to be hired in an expanding Australian manufacturing industry.

We find a highly innovative ecosystem of manufacturers employing Australians in highly skilled, resilient and competitive jobs serving global customers

Beyond these high-profile projects, there are smaller businesses that have created new opportunities for former Holden and Ford employees. Jaunt Motors is one such company. It specialises in converting old cars into electric vehicles and has been able to hire several former Holden engineers to help.

Savic Motorcycles is also taking advantage of the electric revolution to start low-volume manufacturing in Australia.

Most of these projects have been helped by the Advanced Manufacturing Growth Centre, a not-for-profit organisation set up in 2015 to help drive innovation across the manufacturing sector. While not specifically focused on automotive, it has helped Walkinshaw, Premcar and Savic, as managing director Dr Jens Goennemann explained.

“If we can look past the often heard yet plain wrong statement of ‘we don’t manufacture anything in Australia any more because we don’t make cars’, we find a highly innovative ecosystem of manufacturers employing Australians in highly skilled, resilient and competitive jobs serving global customers – including automotive giants demanding globally relevant products manufactured in Australia,” Dr Goennemann said.

“Automotive remanufacturing companies such as Walkinshaw, Premcar and others, are responding to customer demands – such as conversions – while developing nurseries for automotive innovation that will extend beyond our shores.”

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CREDITS: STEPHEN OTTLEY

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