The Australian automotive industry has been important to the Australian economy for many decades. Unfortunately, due to factors regarding the cost of production in Australia, including the higher wages and benefits of Australian workers, the 3 major manufacturers, Holden, Ford and Toyota, have all announced that they will be moving their production overseas. This move follows a motion made to the government to continue providing financial assistance to prevent it from doing so. Toyota, Holden and Ford have announced that their respective companies will close all manufacturing plants in Australia by the end of 2017. Holden CEO Mike Devereux has announced Holden's plans to cease production in Australia with this statement in a press conference: “Today we are announcing that Holden will cease production in Australia by the end of 2017. This will mean the eventual closure of our Elizabeth as well as our Victorian engine plant, our engineering center and our testing facility at Lang Lang.'(Herald Sun 2013)Many Australians believe that subsidizing the automotive industry is a huge waste of taxpayers' money, as, if the industry was required by society it would be able to sustain itself By government intervention, they are only further promoting reliance on taxpayers to fund the bad decisions of industry executives. This is in line with the theory of classical liberalism, especially Hayek's ideas. Hayek supported the role of government in supporting business and the effects of intervention on a society. “Classical liberalism is a political belief that is extremely suspicious of government intervention at all levels.” (Klein & Stern, 2006, p10). His beliefs were that... middle of paper...." The Advertiser. http://www.adelaidenow.com.au/news/workers-at-holdens-closing-elizabeth-plant- blame-governo- federal-per-iloro-futuro-incerto/storia-fni6uok5-1226781066248 (accessed March 22, 2014). Davidson, Remy “FactCheck: Do Other Countries Subsidize Their Auto Industry More Than We Do?” .com/factcheck-do-other-countries-subsidise-their-car-industry-more-than-we-do-16308 (accessed March 21, 2014) Dowling, Joshua “Thousands of Office Workers to Lose Jobs at Toyota, Holden, Ford." NewsComAu. http://www.news.com.au/finance/thousands-of-office-workers-to-lose-jobs-at-toyota-holden-ford/ story-e6frfm1i-1226835343394 (visited on March 22, 2014).Duxfield, Flint. “Mining Subsidies Top $4.5 Billion: Australia Institute http://www.abc.net.au/news/2013-06-25.” -mining-subsidies/4778042 (accessed March 27, 2014).