Automotive
South Australia is a key part of the Australian automotive industry.
It is home to major operations by the car manufacturer GM Holden Ltd. It is also home to a cluster of about 40 component manufacturers and suppliers.
The South Australian automotive industry comprises businesses involved in the manufacture of motor vehicles and motor vehicle parts including, tyres, steel and alloy wheel, engine components, rear-view mirrors, seats, suspension modules, mouldings and exhaust systems.
Overview
Adelaide is in the top 20 most cost-competitive cities in the world (out of 102 cities) for automotive manufacturing.1
Combined with this relatively low-cost base, South Australia offers manufacturers the advantage of high-quality transport infrastructure to facilitate product distribution and the opportunity to collaborate with leading advanced manufacturing research centres.
Output:
• More than 118,000 cars in 2007, about 35% of the Australian total.2
Exports:
• A$883 million in passenger vehicle exports in 2006-07, plus another A$125 million in components and vehicle bodies.3 Key export markets include the United States, Saudi Arabia, China, New Zealand, United Arab Emirates, Kuwait and Korea.4
Employment:
• The South Australian automotive industry is one of the three largest manufacturing sectors in the State, with more than 7,800 people direcly employed (as of Feb quarter 2008). 5
• 1.03% of total State employment.6
Number of businesses as at 30 June 2007
| Non-employing |
Small employ
1-19 |
Med. & Lge employ
20+ |
Total employing businesses |
| 135 |
99 |
60 |
294 |
Business representation
South Australia has the presence of major international automotive companies, including GM Holden Ltd, Bridgestone Australia, Hirotec, Schefenacker Vision systems, Siemens, ZF Lemforder, Tenneco, and Futuris Automotive.
Geographic focus
Firms in South Australia’s automotive industry are concentrated in Adelaide in the vicinity of the car manufacturing plant of GM Holden Ltd (northern Adelaide). Automotive component manufacturers are located adjacent to the GM Holden Ltd vehicle assembly plant in a 90-hectare automotive precinct at Edinburgh Parks. The park is directly linked by a tuggerway to the Holden plant.
Research and development
Research and development expenditure by the South Australian automotive industry was $57.85 million in 2005-06.8 Investment in research and development, as well as the ongoing training of automotive industry workers, is critical for motor vehicle manufacturers and component suppliers to maintain a competitive global position without compromising vehicle quality.
Case Studies
GM Holden Ltd
Intercast and Forge
Futuris Automotive
Industry groups
Federal Chamber of Automotive Industries
Federation of Automotive Products Manufacturers (FAPM)
Engineering Employers Association South Australia
View Premier Mike Rann's media statement and South Australia's recent submission to the Federal Government's Automotive Industry Review 2008.
