Misplaced Pages

Button car plan

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.

This is an old revision of this page, as edited by EncMstr (talk | contribs) at 18:10, 7 November 2005 (move table up, remove redundant heading). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Revision as of 18:10, 7 November 2005 by EncMstr (talk | contribs) (move table up, remove redundant heading)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)

The Button Car Plan (also known as the Button Plan) was the informal name given to initiatives by the Australian Federal Government to rationalise the motor vehicle industry. The plan took its name from Senator John Button, the federal Minister for Commerce, Trade and Industry.

At the time of its inception, Australia's motor industry was heavily protected by import tariffs, harbouring the assembly of 13 different models by various manufacturers. The Button car plan aimed to reduce this number to 8 models, with the aim of forcing some amount of industry consolidation. The over-arching aim of the scheme was to make the motor vehicle industry in Australia more efficient (by consolidation of resources), allowing the import tariffs to be gradually unwound. This in turn would theoretically expose the local industry to increased competition from imported products, fostering improvement in local vehicles and creating the basis for a competitive export industry.

Industry consultation had begun in 1984 with a proposed start date of 1985. The most obvious effect of the plan for the Australian car buyer was the appearance of badge engineered vehicles, where the same basic vehicle was sold by several different companies under different names. These models included:

Original name Badge-engineered derivative
Ford Falcon Nissan Ute
Holden Commodore Toyota Lexcen
Nissan Pintara Ford Corsair
Nissan Pulsar Holden Astra
Toyota Corolla Holden Nova
Toyota Camry Holden Apollo

This proved unpopular with buyers, and original models outsold their badge-engineered counterparts. The last such model, the Holden Apollo (Toyota Camry) was dropped in 1997. Rather than share locally-assembled models with other manufacturers, Holden, Ford, and Toyota decided to import fully built-up models from subsidiaries elsewhere in the world, such as Europe or Japan. Mitsubishi had never shared models with other manufacturers, while Nissan ended car manufacturing in Australia completely.

The Button Car Plan was one of the first implemented examples of economic rationalism that marked the Australian Labor Party's term of office with the election of Bob Hawke and treasurer Paul Keating.