It is a day like any other for the scrapyards in Australia.
The sun is high in the sky, the breeze is warm and the air is crisp and clean.
Sprint car parts and parts kits, like the ones on display at the Adelaide scrapyards, are part of the big business that makes up this country’s automotive sector.
But this particular day the Australian automotive industry is in crisis, and the car companies are struggling to pay suppliers.
The industry has been battered by competition from China and from cheaper Chinese knockoffs, which have undercut the industry’s profitability and hurt its reputation with consumers.
This week, the Australian Competition and Consumer Commission (ACCC) has released a report into how the industry is performing.
It says the industry has lost $9 billion and that the industry in general has lost more than $1 trillion in value over the last 10 years.
“We are facing a systemic crisis in the Australian auto industry,” said ACCC chairman Rod Sims.
“The industry is not performing as well as it should and it is not sustainable.”
The report has sparked a debate in Australia about how best to help the industry recover.
One suggestion is to scrap all cars from the scrap yard and replace them with cheaper Chinese cars, which the industry would buy.
Another suggestion is for car companies to scrap the industry altogether.
But there are plenty of other ways for car makers to get the job done, like selling their parts on to other companies.
For a company that is a large employer in the automotive sector, this is a win-win situation.
“The big problem is we are losing $9bn and our biggest asset is our workforce,” said Chris Wood, chief executive of the Automotive Industries Association of Australia.
“That’s going to be an issue for the next 20 years or so.”
Wood says the only way to fix this is for the industry to be run like a public company.
As the world’s largest automotive company, the ACCC is an authority in the industry and has a number of policy recommendations.
It also sets a benchmark for the car industry.
In 2018, it recommended the government set a target for the sector to recover $20 billion in revenue by 2026.
That goal was set for 2020, but it was not met.
So in 2020, the ACCC set a new benchmark: $50 billion by 2034.
That benchmark was set by the previous government, which was not able to achieve that goal.
And as the economy continues to recover, so too will the automotive industry.
The ACCC also set an aspirational target of achieving a 50 per cent return to profitability in 2020.
The government has been working to achieve this goal.
It has cut back on government grants to local and regional councils and it has introduced tax incentives for small business.
According to the ACCCC, a big part of this has been done through a $40 million program to support small business growth and job creation.
Some car companies have been able to attract foreign investment and are doing very well.
These have included Jaguar, Ford and Honda.
Jaguar, which made the iconic Jaguar XK, is one of the most successful car companies in the world.
Honda’s cars have also been making big profits.
While it is too soon to tell if the industry will be able to continue to grow, the car makers have had a great year, with record profits.
So what can the industry do to help recover?
Sims says the government needs to start by getting a grip on the business model of the scrap yards.
What is a scrap yard?
The Australian Automotive Industry Association of SA is the trade body for scrap metal companies in South Australia.
It was set up by the government in 2015 to ensure the industry was run fairly.
The group represents scrap metal suppliers, manufacturers, importers and dealers.
Under the current regulations, the scrap industry has no formal contract with the government and can operate freely.
The scrap yards are the only source of scrap for the automotive industries.
They provide a lot of jobs and generate a lot more revenue for the government.
They are also a significant part of South Australia’s economy.
Why are the car industries struggling to keep the business going?
“They are the biggest employer in South Australian,” said Wood.
With the cost of maintaining the industry so high, there are less jobs available for scrap yards, and therefore fewer people to hire.
When car companies sell their parts to other car makers, the companies must provide parts to the scrap dealers and they have to pay a fee to the car maker.
Sims said the government has to set a good benchmark for what it expects the industry can achieve.
He says if the government sets a goal, it should be done by 2020.
At the moment, the industry expects to recover a little less than $3 billion