Originally Posted by cobramania
I think without a doubt, it's going to be tough times ahead for the entire automotive industry (among others).
Over the past 6 months or so, 3? Ford dealers have closed in Sydney alone, with another one going in the next month, other brand dealers have gone too.
Also with Ford shuting up shop in 2016 if not before, & I'd say Holden won't be far behind, with Toyota following.
Only the strong will survive, but as we've seen, the marketplace has taken it's toll on even the biggest of companies, Ford & GM, so it's going to be near impossible for the little guys to survive unscathed.
Yesterday afternoon a mate of mine walked away from his Smash Repair business of around 30 years. He was a few months behind on rent of his workshop, & cash flow has been tight for some time, but he was trying to trade out of it.
Yesterday it all became too much, & he collected up a few hand tools, took a few customer cars who's jobs were almost finished, shut the doors & walked away.
Leaving the rest of the tools, paints, some parts, 3 or 4 hoists, the spray booth, 2 large diesel generators, & about 5 personal project cars in various states of repair/restoration, for the landlord to sell off & recover the rent + make any profit he wants from the sale.
He'll finish off the customer cars himself using another workshop & payup any small creditors with the last of the insurance payments from the customers, then walk away empty handed.
I'm not sure if he's taken his Variety Club Bash car or left it?
He competes in the Variety Club Bash every year & has done so for about 10 years now. Even if he's kept the car, I doubt he'll have enough money to compete next year, so a very good charitable cause has also lost funds/donations & become a innocent victim.
About 8 other staff will/have lost their jobs as a result. Not good this close to Christmas, but there was nothing else he could do, with costs rising, insurance companies screwing repair prices down, often to below cost so corners have to be cut. Everyones losing out here & no one will win in the end.
Unfortunately I predict come 2017 Aus will be in a major recession, with many out of work, little money around to spend, with the auto industry being just the start, & there's little the current government can do to avoid it.
In my industry also, (Air Conditioning), in the Sydney, Central Coast & Hunter areas, I know of at least 25 A/C installation companies who've shut up shop in the last 3 months with more to come at the end of this summer season (around March/April). Some of the older guys have retired early, younger ones are looking to move on to elsewhere (another industry). My own boss is very seriously (almost confirmed) to be giving it away & retiring at the end of the season.
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