In my opinion despite high wages and an uncompetitely high currency a major cause of the end of Australian car manufacturing is Ford USA, GM and the United States government.
Now before i'm accused of having on my tin foil hat on, Ford and Holden both had massive export opportunities for their vehicles in the USA. Not long ago it looked like the XR8 and the XR6 Turbo was going to become the new workhorse of Police and Sheriff departments across the United States, it was big, powerful, rear wheel drive, all the things that are desirable features for cops on the beat.
However politicians in the government werent to happy about this and were worried that if Ford Australia took over a hundred thousand orders (the estimate of potential sales over a number of years) it would cost jobs in Detroit and Ford was lobbied both externally and internally to instead continue the production of the old Crown Vic until a bastardised Tauraus police car could be developed. This one instance cost Ford Australia its future, if the Falcon had of been the only choice for a Ford based police car brand loyalty would of lead most of the departments to purchase Falcons and save not only the Falcon/Territory but also Ford Australia's manufacturing base.
As for GM they never wanted the Pontiac G8 or Chevy SS to succeed, not when they continue to make piece of shit cars like the Impala or the Malibu. While they are reasonable cars, compared with a VF Commodore they are absolutely in the stone age.
Of course most of this took place with the GFC as a backdrop and it was all about American jobs for Americans, while Australia obviously manufactured superior cars it was about the shit they could turn out in the Detriot not making great cars.
Holden you shall be sorely missed.