ABSTRACT
During the 1990s the Australian automobile industry improved its performance considerably. The quality of locally produced vehicles improved - particularly over the second half of the decade - and is now comparable with all but the best of imports. Pre-tax prices of large cars (Commodore/Falcon sizes) are about the same as similar cars in the United States, and considerably cheaper than in Britain. Small cars, however, are more expensive here than in the United States, but again tend to be cheaper than in the United Kingdom.1 However, at least partly the result of the luxury car tax, retail prices of these vehicles in Australia are considerably higher than in the US and UK.2 The success of Korean imports at the low-priced end of the market in recent years has placed considerable downward pressure on virtually all Australian automobile prices.3
