The issue have been arise by the current high value of Australian dollar. This has reduced the cost of imports in the domestic market and cause high operating cost in Australia, some car-producing countries significant devaluing their currency, effectively making car imports into Australia even cheaper. The effect of the closure of the Australian automotive manufacturing can damage the long-term productivity capacity of Australia economy. The Australia economy would be smaller if automotive manufacturing left the country. The country will import more than export and lack of international competitiveness and heavy reliance on capital goods from overseas(Ruhul&Harry,2009)might increase Australia's current account deficit in the future.At the same time Australia will be heavily impacted with a long-term fall in gross domestic product (GDP) that cause by low investment and low expenditure. The evidence show manufacturing shared 8.4 per cent in Australia GDP in 2013 ( Joaquin, 2013).On the other hand the Australian automotive manufacturing receive small amount money of government support compared with others countries. It is also small compared to the economic activities generated by local automotive manufacturing. Furthermore, the Australian produce car more for domestic purchase than export. It show that there may be some gain from the lost, as the car retailer can supply cheaper car as the production cost overseas are inexpensive compared to Australia and all the money that taxpayers have been pumping into the car industry will be reallocated to more useful areas, like infrastructure spending.