The Federal Tariff of 1901 marked the first of numerous interventions by the Australian government designed to stimulate the production of finished motor vehicles. It was unsuccessful, as was the “Tudor” Tariff of 1911, which imposed a specific duty on body imports; war conditions in 1917 led to an embargo on imports of motor vehicles. Thereafter, the government's need for revenue, which favored protectionist measures generally, in combination with a defense policy that deemed engine production to be of strategic importance, underpinned a series of government measures intended to promote local vehicle production. One effect of the “Green” Tariff in 1920, which afforded protection to manufacturing in general, was to attract American assemblers. By that time, the fierce and often clandestine clash of pressure groups representing special interests, within government, and within the motor industry (broadly defined to include local suppliers of components and equipment, from tires to electrical fittings), had become an important influence on policy. In several instances, the effects were both perverse and hilarious. A fragmented and inefficient industry operated within effective tariff protection, of which the principal beneficiaries were American multinationals. The “complete car project” of the 1930s was a failure, though it was revived under wartime conditions in the 1940s. With subsidies in mind, the government persuaded reluctant American and British producers to submit plans for full car manufacture, the first to do so being GM-H, the Australian subsidiary of General Motors (incorporating Holdens, the, long-established local body manufacturer).
