The Australian automotive industry has played an important role in the Australian economy for many decades. Unfortunately, due to factors related to the cost of manufacturing in Australia, including the higher wages and benefits of Australian workers, the three major manufacturers, Holden, Ford and Toyota, have all announced that they will move their production overseas . The move follows a motion to the government to continue providing financial assistance to prevent them from doing so. Toyota, Holden and Ford have all announced the closure of all manufacturing plants in Australia by their respective companies by the end of 2017. Holden managing director Mike Devereux announced Holden's plan to cease manufacturing in Australia with this statement at a press conference: “Today we are announcing that Holden will stop manufacturing in Australia by the end of 2017. This will mean the possible closure of our Elizabeth factory. engine plant, as well as our Victoria engine plant, engineering center and proving grounds in Lang Lang. » (Herald Sun 2013) Many Australians believe that subsidizing the car industry is a huge waste of taxpayers' money, as if the industry is demanded by society; he would be able to maintain himself. With government intervention, they only further foster reliance on taxpayers to fund the poor decisions of industry leaders. This is consistent with the theory of classical liberalism, particularly the ideas of Hayek. Hayek defended the role of government in supporting business and the effects of intervention on a society. “Classical liberalism is a political belief extremely suspicious of government intervention at any level.” (Klein and Stern, 2006, p. 10). His beliefs were that...... middle of paper......." The Advertiser. http://www.adelaidenow.com.au/news/workers-at-holdens-closing-elizabeth-plant- blames-the-federal-government-for-their-uncertain-future/story-fni6uok5-1226781066248 (accessed March 22, 2014). Davidson, Remy "FactCheck: Do other countries subsidize their auto industries more than us? » . http://theconversation.com/factcheck-do-other-countries-subsidise-their-car-industry-more-than-we-do-16308 (accessed March 21, 2014). Dowling, Joshua. workers will lose their 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 (accessed March 22, 2014 ). Duxfield, Flint. “Mining subsidies exceed $4.5 billion: Australia Institute http://www.abc.net.au/news/2013-06-25/nrn-dist-mining-subsidies/4778042. (accessed March 27, 2014).