Thursday, February 20, 2014

A little bit of forecasting - cars in Oz

Here's my stab at economic forecasting - with the withdrawl of Holden and Ford (and to a lesser extent Toyota) - from locally manufactured large cars ALL cars in Australia are about to get more expensive, not less.

The Commodore and Falcon were large cars with big engines, acres of sheet metal and lots of 'fruit' ie good little gizmos - and they provided all this for remarkably little money - near enough to $40,000. This drove a stake in the ground for the rest of the segments - mid sizers had to be thousands less, small cars less still, light cars even less. Soon that stake will be gone and there will be nothing to peg the price of imports. In the absence of the downwards pressure the Commodore and Falcon exerted, prices only have one way to go - up.