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Goodbye Aussie from GM

By the end of 2017, General Motors Company (NYSE:GM) will stop producing vehicles in Australia. GM cited high manufacturing cost, strong Australian dollar, and small competitive domestic market as reasons for the exit. The carmaker could not see operations in Australia succeed financially in the long term. In May, Ford also announced that it would stop production in Australia by 2015. Toyota will be the only remaining car manufacturer in Australia.

The exit of GM and Ford sends a huge blow to the manufacturing sector in Australia. The economy in Australia is already suffering a slowdown as a result of the collapsing mining sector, which is the largest domestic industry in the country. It is not yet certain that Toyota will continue to remain in the country. Tough road ahead for the Australian economy!