IntroductionThis report will explain why the automotive manufacturing industry in Australia is closing its doors using an analysis of five forces which are barriers to entry, competitors, the purchasing power of buyers, supplies and subsidies. , and a life cycle analysis. Five Forces Analysis  Barriers to Entry Being with the barriers to entry which, including strong currency and higher labor force, have the most significant impacts on the automobile manufacturing industry. In 2013, Holden would cut 12% of its workforce and announced a three-year pay freeze agreement to remind workers to continue operating the manufacturing plant in South Australia (Thurlow, R. 2013). Additionally, a strong currency not only makes domestic exports less competitive, but also increases the amount of cheaper imports from emerging markets like China and Thailand due to globalization. For the moment, China enjoys great human power which strengthens its competitiveness in terms of export products (Curran, E. 2013). Australian manufacturers therefore have less competitive power compared to imported goods and services. Although total car sales have increased, sales of Australian-made vehicles have seen a significant decline (20%), as stated by Thurlow, R. & Glynn, J. 2013. It appears that the barriers at the entrance hardly block the automobile industry. According to the Australian Department of Industry, customers can choose 66 vehicle brands, compared to 51 in the United States (AMS), according to Timothy, C. 2014, let alone only 36 brands. Local car manufacturers therefore find it difficult to survive in this small market without any advantage. Unfortunately, the used car market is active, cars... middle of paper ......ts See Risk of Australian Recession, New York, NYFraser, K., Watanabe, C. & Hans-Henrik Hvolby 2013, “COMMITMENT TO SERVICE QUALITY AMONG AUTOMOTIVE DEALERSHIPS: RESULTS FROM AN AUSTRALIAN PILOT STUDY”, Journal of Services Research, vol. 13, no. 1, pp. 7-29. Thurlow, R. & Glynn, J. 2013, Imports hit Australian automakers --- Strong currency and shift to sport utility vehicles force local GM and Toyota operations to rely on l government aid, Hong Kong. Glynn, J. 2013, Australian automakers have yet to resolve the strong dollar, New York, NYThurlow, R. 2013, Australia's automakers' struggle; Industry struggles with cheaper imports, rising Australian dollar, New York and NYFord's exit in the US; Australians paid again and again for auto rates 2013, New York, NYhttp://www.goodcarbadcar.net201403usa-auto-sales-brand-rankings-february-2014-ytd.html