Holden to cease production in 2017

  • Thread starter Mike Rotch
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Mike Rotch

Mike Rotch

Aluminium Overcast
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Hot on the heels of Ford ceasing production of the Falcon, comes today's announcement that Holden will cease design and manufacture of cars in 2017:

As part of its ongoing actions to decisively address the performance of
its global operations, General Motors today announced it would transition to a
national sales company in Australia and New Zealand. The company also said it
would discontinue vehicle and engine manufacturing and significantly reduce its
engineering operations in Australia by the end of 2017.
“We are completely dedicated to strengthening our global operations while meeting
the needs of our customers,” said GM Chairman and CEO Dan Akerson. “The
decision to end manufacturing in Australia reflects the perfect storm of negative
influences the automotive industry faces in the country, including the sustained
strength of the Australian dollar, high cost of production, small domestic market
and arguably the most competitive and fragmented auto market in the world.”
As a result of the company’s actions, approximately 2,900 positions will be
impacted over the next four years. This will comprise 1,600 from the Elizabeth
vehicle manufacturing plant and approximately 1,300 from Holden’s Victorian
workforce.

Holden will continue to have a significant presence in Australia beyond 2017,
comprising a national sales company, a national parts distribution centre and a
global design studio.

GM Holden Chairman and Managing Director Mike Devereux said an important
priority over the next four years would be to ensure the best possible transition for
workers in South Australia and Victoria.
“This has been a difficult decision given Holden’s long and proud history of building
vehicles in Australia,” said Devereux. “We are dedicated to working with our teams,
unions and the local communities, along with the federal and state governments, to
support our people.”

The sale and service of Holden vehicles will be unaffected by this announcement
and will continue through the extensive network of Holden dealers across Australia
and New Zealand. Warranty terms and spare parts availability will remain
unchanged.
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http://smh.drive.com.au/motor-news/holden-to-cease-manufacturing-in-2017-20131211-2z5mp.html
 
Terrible day for the country, the workers and the car industry. Never should of got to this stage but the Australian public choose a libreral government
 
magpie1997
Terrible day for the country, the workers and the car industry. Never should of got to this stage but the Australian public choose a libreral government
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As much as I agree with you, our economy currently isn't the best for producing automobiles. Continuous government bailouts for the industry and decreasing costs for foreign cars means that there's a lot of competition in the market and unless companies like Holden and Ford can compete they're going to reach their inevitable end. The government has already injected a lot of funding into these companies to help the employers keep their jobs but it's just not looking great for us at the moment. The worst part is the loss of jobs, the announcement for the closure of Ford was already devastating news to the community of Geelong and now the soon to be loss of Holden will cause even more unemployment. My condolences go out to the families and workers of these industries, hopefully you can find your feet again soon and things begin to brighten up.
 
I agree that the car market is too big for this country that was something that should of been fixed a long time ago.

I just would of thought a lot more effort would of put into saving Holden when this creates such a dramatic flow on effect. Billions are being spent on agriculture and mining. Thought the auto industry is just as importand
 
the-young-hooly
It's not the governments fault, our industry just can't compete with the cheap labour offered overseas. To give them another bailout would be like beating a dead horse, it's just not a sustainable solution.
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Losing thousands of jobs isn't sustainable ether. Just look at South Australia individually. Holden was the only major industry they had left and now they have nothing
 
magpie1997
Losing thousands of jobs isn't sustainable ether. Just look at South Australia individually. Holden was the only major industry they had left and now they have nothing
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Losing jobs is never good, but Holden themselves stated they needed atleast $500,000,000 to build 2 new models for 2016. Are we going to give them half a billion dollars every time they want to build a new car?
 
magpie1997
Losing thousands of jobs isn't sustainable ether. Just look at South Australia individually. Holden was the only major industry they had left and now they have nothing
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It is bad news that there will be job losses yes, but it's simple: their productivity and costs where not competitive enough. The US car industry learned it and changed their ways, Holden didn't. The fact that the Commodore still exists without a 4 pot tells you everything you need to know.
 
the-young-hooly
Losing jobs is never good, but Holden themselves stated they needed atleast $500,000,000 to build 2 new models for 2016. Are we going to give them half a billion dollars every time they want to build a new car?
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It is worth every cent. The problem with this country is that we are too obsessed about a surplus.

It estimates that around $4 billion in lost economic activity would flow from closure of Holden nationally. The impacts would be widespread with Victoria, New South Wales and South Australia worst affected. Employment losses of up to 65,000 were projected reflecting assumptions that the vast majority of large automotive suppliers to Holden would not be able to continue their operation, affecting hundreds of other companies that form part of the automotive supply chain and others that benefit in the wider economy.
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http://www.independentaustralia.net/politics/politics-display/the-heavy-cost-of-losing-holden,5977
 
Sadly it was inevitable and any future government handouts to Holden were just going to be an act of kicking the can down the road. With Toyota being the only automotive manufacturer left, Australia is going to have a real problem once we run out of things to dig out of the ground.
 
Mike Rotch
It is bad news that there will be job losses yes, but it's simple: their productivity and costs where not competitive enough. The US car industry learned it and changed their ways, Holden didn't. The fact that the Commodore still exists without a 4 pot tells you everything you need to know.
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In a way I'm with you on that. They had announced that the Commodore would go down from 6 to 4 cylinders in 2016 but in reality thats too late. Take Ford for example, their operations in Australia will shut down in 2016. Both Holden and Ford like it was said before didn't change with the times. The Falcon and Commodore are effectively dinosaurs and yet they still made them even when in 2007 sales dropped (for the Falcon they did). Realistically that was a sign to say we should do something about this and they kept on making the Falcon. There has never been a diesel variant and they only gave it a 4 cylinder ecoboost engine last year but that was too late. The actions of Holden and Ford have had the same effect: the Australian car industry doesn't exist anymore.
 
the-young-hooly
It's not the governments fault, our industry just can't compete with the cheap labour offered overseas. To give them another bailout would be like beating a dead horse, it's just not a sustainable solution.
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You've got it spot on. This year they ask for half a billion, next year they ask for a billion, and the year after possibly one and a half, just to keep up with companies that will continue to produce cars for less.
 
A simple paycut is not enough. Australian workers demand much higher wages than those stationed in Asia. Our cost of living is just too high.

On a side note, I found it rather interesting Labor were quick to blame the Liberals for this outcome, yet it was under their leadership that we saw the demise of Ford and Mitsubishi's Australian manufacturing divisions.
 
I was too young to know the circumstances in which Mitsubishi left but I know Ford left with full support from the government. Ford were also in a much worse position than what Holden is in.

Also remember that Holden were committed to 2022 under the labor government

You also must consider that this $500million is only 0.13% of total revenue and considering the benefits it provides to the rest of the auto industry I think it is money well spent
 
That doesn't give Labor the right to once again force their political agenda on an issue which has essentially nothing to do with politics.
Yes, they say $500 million now, but how much will they need in 5-10 years time to stay competitive? How can they compete when their competitors are building cars on par (and in cases, better) in terms of quality for a much lower cost. We simply don't have the population to allow our automotive industry to compete with the imports.
 
Lets face it the only car they make in australia is the commodore and not many people want a big, heavy V8 or V6 when petrol is $1.70 a liter these days.

They were going to shut down if we gave them money.

At least the 500 million go tohelp the workers directly
 
magpie1997
You also must consider that this $500million is only 0.13% of total revenue and considering the benefits it provides to the rest of the auto industry I think it is money well spent
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Yea, but you are essentially asking taxpayers to pay Holden to throw away money on unprofitable cars. This isn't China - Holden is a private enterprise. It is can't remain competitive, it has to go. And the workers who enjoyed being paid over-and-above what value they brought to the table in a global productivity context unfortunately have to bite the bullet.

This should never be a political issue - Labour should never have propped up a private enterprise. It just papered over terminal issues.
 
the-young-hooly
That doesn't give Labor the right to once again force their political agenda on an issue which has essentially nothing to do with politics.
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Of corse it's politics related, just a moment ago you blamed labor for Mitsubishi and Ford and when I present an argument that shows labor did the right thing it is now unrelated???

Yes, they say $500 million now, but how much will they need in 5-10 years time to stay competitive? How can they compete when their competitors are building cars on par (and in cases, better) in terms of quality for a much lower cost. We simply don't have the population to allow our automotive industry to compete with the imports.
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For 15 years before 2011 the commodore was the leading car in Australia. Just 2 years out of that position and all of a sudden they don't know how to make a car that Australians would buy? Give them time and they would of sorted themselves out.

Also in terms of cost the VF is cheaper than when the VE was released and the VE was a leading seller so where is the logic in that theory?

As I have stated earlier i agree that the market is too big for this population. There should of been legislation protection the Australian car industry but it is too late now
 
magpie1997
Also in terms of cost the VF is cheaper than when the VE was released and the VE was a leading seller so where is the logic in that theory?
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True.

But a Camry/ Mazda 3 is cheaper than the VF and more economical. They needed to measure their competitiveness against what other products where available, not against their own lineup and what Ford was offering.
 
Try and maintain both cars and see which one is cheaper. lpg means that it can be as cheap if not cheaper (depending on varying gas prices) to run than your standard 4-cylinder.

Also your comparing apples with oranges there's no way you can convince me that a camary is equal to a commodore

For that reason it is a bit hard to compare a commodore on price
 
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magpie1997
Of corse it's politics related, just a moment ago you blamed labor for Mitsubishi and Ford and when I present an argument that shows labor did the right thing it is now unrelated??
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I wasn't blaming anyone, I was just highlighting the fact that Labor have no right to blame the Liberals for this outcome. The demise of our manufacturing industy is an economic issue, not a political one.
 
magpie1997
And isn't it the governments role to look after the economy???
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Well, now they can take the 500m they would have spent this year, the (500 + xxxm) next year etc and spend that on improving healthcare or on education. The economy is greater than one small sector.
 
I know that I do study economics. This falls into that 10% into which the government can and should control due to the large macroeconomic ramifications it has.

Your right the auto industry is one small sector, $500million is also one very small section of our budget
 
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For the government to get Holden out of their situation would be like trying to fix the Titanic with sticky tape. Why should my taxes be wasted on a sinking ship? The global market has simply become too competitive, and I can think of better things this government can spend money on, such as improving our frankly laughable education system, or widening that damn M5 motorway.
 
I think we have come to that point where we will have to agree to disagree. Your right wing views don't match my left wing views 👍
 

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