PNGCars

How has the global crisis affected the auto industry in the world? The answer to this question is a simple – ‘tremendously.’ In the media for the last few months we have seen the impact of the crisis on the auto industry world wide. From massive auto layoffs in Europe, Government bail outs in America and cash incentives in Australia, the crisis has forced governments and companies to become more creative, more ruthless, more leaner to protect the industry and the jobs it represents and the importance of the industry to local economies. (hit the read more button to see rest of article)

The world Governments really got involved with their local car makers. In China the Government reduced automotive taxes, the State Bank of India reduced interest on Automotive loans in India, in Russia, massive riots broke out when the Russian Government slapped 30% protection taxes on car imports, the France and German governments through their support behind their local car brands,  the Swedish Government provided its troubled automakers Volvo and Saab with SEK 28 billion (K10 billion), in Canada, the government provided massive financial assistance to automakers there and in America, the multi billion US dollar Government bailout  of General Motors and Chrysler saved thes iconic companies from possible closure while Ford was given a massive bridging loan  as assistance. Outlining the effect of the crisis is to complicated for me the writer to outline here (or even understand it and its repercussions). If you want to know more, here is a link to a great Wikipedia article on the Automotive industry crisis of 2008–2010 (http://en.wikipedia.org/wiki/Automotive_industry_crisis_of_2008%E2%80%932010)

The Crisis in PNG (what Crisis?)

Locally, Papua New Guinea weathered the impact of the Global Financial Crisis relatively well due to a relatively large foreign exchange reserves, continued demand for our raw commodity exports and the domestic bank liquidity built up over several years providing financial houses important flexibility to cope with the effects of the crisis ( read more here http://www.eastasiaforum.org/2009/01/09/papua-new-guinea-from-economic-boom-to-economic-gloom/). The National GDP even grew by 4percent!!!

No Government Bail Outs in PNG and here comes LNG (are yu ready?)

Though we may have held our breaths, the automobile industry PNG ( no we don’t have any car manufactures just yet) did not collapse, people still bought cars and financial houses still gave auto loans, hardly anyone lost their jobs from the crisis and the Government didn’t have to bail Boroko Motors and Ela Motors or PNG Motors or Freeway Motors or www.pngcars.com :) out from near bankruptcy.
Though there may have been a little slump, PNG’s vibrant economy just powered on which was a good thing for car sellers.
And things are looking up for the local sellers. Over US$20 billion will be invested in both Esso Highlands and InterOil LNG Projects in the next 3 – 5 years. These projects will double the GDP of the country, triple its export revenues as well create several thousands of direct and indirect jobs. What does that mean for car makers? It means an unbelievable opportunity for growth and the massive challenge of managing that growth.
According to one car dealer, Ela Motors, they are looking at an increase in sales with an extra 1000 Toyota Units to be delivered in the first 12 months and more during the construction phase of the PNG LNG project. In its newsletter Ela Motors said they have the opportunity to grow their Fixed Operations business over the length of both projects. This also provides the challenge of delivering so many extra units in a short space of time.
Understanding the massive challenge of delivering to the LNG project, Ela Motors have even created a separate division to manage the LNG projects and the contractors led by a project manager and a coordinator. In this way, it does not lose focus on its existing clients, serving their needs and also the LNG project demands effectively.
As for this little website, we will do our best to cover the industry these exciting times.