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The world is not short of good cars. Why do the Israelis need to build one? They could probably figure out how to grow maple trees there, to produce their own maple syrup, but I'm not so sure that it would be a good business decision.
Automobile manufacturing requires such a huge investment in infrastructure that I don't think it's worth it. You can write software in a bunker, which we (Israelis) do when we have to. Our MO is developing things that we need (agriculture, medicine, weapons technology) and then marketing them to the rest of the world.
Few people would buy cars made in Israel. There are two reasons for this. First, many would be afraid of vandalism or danger from people who are opposed to Israel. Second, many people are themselves opposed to Israel and boycott products from that country.
When the Arabs stop trying to kill them, the Israelis will turn the Uzi factories into car factories.
That could happen in, say, another 5000 years.
And even so, the economics may not work. Australia (a country with 3x the population of Israel) will be shutting down the last of its auto factories later this year (I think it's GM-Holden; Ford has closed theirs last year and Toyota is or has closed their plant this year.
And even so, the economics may not work. Australia (a country with 3x the population of Israel) will be shutting down the last of its auto factories later this year (I think it's GM-Holden; Ford has closed theirs last year and Toyota is or has closed their plant this year.
This is because Australia is at the "arse end" of the world. Where would we export to? Costs would have been exuberant and therefore dwindled out competitiveness once countries like Thailand and China got up and running. Then you got other factors like shipping times issues etc.
Israel can't have a manufacturing industry because the region is unstable with constant threats of violence from neighboring countries. They don't have reliable cheap human labor, most of the labor comes from arabs and they aren't good at working in factories because just like orthodox Jews they have too many religious issues that prevents them from being heavy industrial nations.
Can't compare with Asian countries which doesn't have any religious issues or terrorism threats.
Israel can't have a manufacturing industry because the region is unstable with constant threats of violence from neighboring countries. They don't have reliable cheap human labor, most of the labor comes from arabs and they aren't good at working in factories because just like orthodox Jews they have too many religious issues that prevents them from being heavy industrial nations.
Can't compare with Asian countries which doesn't have any religious issues or terrorism threats.
Somehow it has one of the highest incomes in the world, around $38,000 per capita GDP; if you counted only Jews it would be higher than the United States. They don't earn all that money by sitting around making falafel. It's a high-tech society.
The reason they don't make cars is that carmaking is a large-country game, requiring parts plants, assembly plants, etc. constructed at a large enough scale to make the operation economical. Switzerland doesn't make cars either.
This is because Australia is at the "arse end" of the world. Where would we export to? Costs would have been exuberant and therefore dwindled out competitiveness once countries like Thailand and China got up and running. Then you got other factors like shipping times issues etc.
The high relative value of the AUD (exacerbated by the income made from commodity exports such as gas and mining) was also a factor making vehicle exports uncompetitive.
Oh, and I think the word is "exhorbitant", rather than exuberant - unless high costs are something to be excited about.
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