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General Motors Holden’s Gone Baby Gone

Posted: December 12th, 2013 | Author: | Filed under: Auto Maker, Auto News, General Motors, Holden | Tags: , , , , , , , , | Comments Off on General Motors Holden’s Gone Baby Gone

General Motors Holden's Gone Baby GoneGeneral Motors has made it’s decision – it’s pulling out of Australia as early as 2016 – Australia’s entire car making industry and tens of thousands of jobs have been thrown into doubt by Holden’s decision to close down.

Almost 3,000 Holden workers are set to lose their jobs – over the next three to four years – as the auto-maker winds down its Australian manufacturing operations.

The decision has prompted Toyota – the only other car manufacturer left in Australia to warn – that Holden’s withdrawal – puts “unprecedented pressure” on the Japanese based manufacturers ability to build cars in the country too.

Mike Devereaux – Holden’s boss – cited a range of economic factors, however he wouldn’t be drawn on the possibility that the government’s move to rule out financial assistance had played any role, the announcement ends a 65 year history of building cars in Australia, and raises a truckload of questions about this nations future in manufacturing.

The decision has been met with regret by the premiers of South Australia and Victoria. General Motors decision means the loss of 2,900 immediate jobs – 1,600 from it’s South Australia plant 1,300 in Victoria – the question on everyone’s lips is, how many more will be affected, The Prime Minister called it a dark day :: Read the full article »»»»

Australian Car Industry Subsidies Worth Keeping

Posted: November 5th, 2013 | Author: | Filed under: Auto News | Tags: , , , , , , , , | Comments Off on Australian Car Industry Subsidies Worth Keeping

Are Government Subsidies Wasted on a Dying Industry?With car production volumes falling to 5 year lows, and on a steady decline, the big question on the lips of auto industry insiders has got to be Are Government Subsidies Worthwhile. Is  it truly worth forking out billions of dollars to sustain an industry that is seemingly on it’s way out?

The Federal Chamber of Automotive Industries – FCAI – reckons they are, it thinks a report showing dire economic consequences if the car industry collapses in Australia will change many people’s views, and hopefully give a final answer to a question that has hung like a noose over Australia’s car-making industry.

The report was compiled for the FCAI by the Allen Consulting Group and Monash University researchers. Automotive production is at close to half the level it was in 2008 when Australia turned out 320,000 cars, this year however the industry might produce as few as 180,000 units.

The standard, and seemingly logical, argument that Australian tax payers shouldn’t be propping-up US companies almost entirely negates the 40,000 strong workforce involved directly in car-making and almost the same again in ancillary industries, it also fails to take into account a contribution close to $25 billion a year to the nations economy :: Read the full article »»»»

Then there was one….

Posted: July 9th, 2013 | Author: | Filed under: Auto News, General Motors, Holden | Tags: , , , , , , | Comments Off on Then there was one….

Then there were two...As Holden talks of cutting costs,production and jobs, the once mighty motor-car makers CEO Mike Devereux has warned of more pain on the horizon for the company’s embattled workers, pay cuts and more job losses, saying the car maker must radically and quickly reduce costs to survive in Australia.

The company says it is facing unprecedented challenges and is now asking its workers to help it make significant savings to ensure its Australian operations remain globally competitive. Last week, a warning from executives about the company’s future triggered a surge in employees wanting a voluntary separation package.

Ford’s talk of factory closures have flared fears for the future of Australia’s automotive industry. Australia’s auto industry is in such disarray that terms like “everything’s on the table” are being bandied around. A high dollar, cheap overseas labour and a global market are putting pressure on Australia’s manufacturing sector, and the car industry represents the malaise like no other.

There was a time when Australia had five car companies successfully making and selling cars locally. But those days are long gone – there has been a slow and steady decline in the industry since the early 1980s. Nissan closed its doors in 1992, Mitsubishi followed in 2008, and now Ford has announced it will stop production in Australia in 2016. The remaining companies, Toyota and Holden, have cut hundreds of jobs in the past two years, both are intending the slashing to continue, with odds on even that neither will be making cars in Australia within 5 years :: Read the full article »»»»

General Motors Holden Sheds More Than 10 Percent of it’s Workforce

Posted: April 8th, 2013 | Author: | Filed under: Auto News | Tags: , , , , , , , , | Comments Off on General Motors Holden Sheds More Than 10 Percent of it’s Workforce

General Morors Australia Cuts 500 JobsGeneral Motors Holden – the Australian subsidiary of General Motors – has shaken the ever shrinking Australian Manufacturing Sector announcing it intends to lay off another 500 workers in response to falling demand and the high Australian dollar. The company says it needs to cut production from 400 to 335 cars a day to meet falling demand, with cheaper imports drawing customers away from the auto-maker’s locally made Cruze and Commodore models.

Staff were told this afternoon that production workers in South Australia and vehicle development employees in Victoria would be the target of the job cuts. Holden’s managing director, Mike Devereux, told a media briefing that 400 of the redundancies would be from its factories in Adelaide, with another 100 in Victoria. Mr Devereux said the redundancies would be voluntary and were a last resort after trialling non-production days to cut output, and increased advertising, lower pricing and new models to boost sales.

Last Month, General Motors Holden revealed that it had received $AU2.17 billion in Australian Government assistance over the past 12 years, 50 per cent more government assistance than previous estimates. many are now asking if local auto manufacture is a viable notion in such a sparcely populated nation :: Read the full article »»»»

GM Holden Slows South Australian Production

Posted: September 29th, 2012 | Author: | Filed under: Auto Maker, Auto News, General Motors, Holden | Tags: , , , , , , , , | Comments Off on GM Holden Slows South Australian Production

GM Holden Slows ProductionAustralia’s General Motors Holden is shutting down assembly lines at its Elizabeth plant in Adelaide for short periods between now and Christmas. The company will impose what it’s calling Market Response Days to reduce production and rationalise costs in response to lower sales of it’s locally manufactured vehicles.

GM Holden’s corporate affairs manager Sean Poppitt said employees would be told to stay home during the shutdown. He said they could opt to take long service or holiday leave if they wanted more pay during the period. “Employees who aren’t required to work are on 60 per cent pay,” Mr Poppitt said. “We do understand that these kind of decisions, we don’t take them lightly and we do understand that there is an effect on our employees, so we’ve worked really closely with the unions to identify the best days and everyone’s been informed.”

Mr Poppitt said GM Holden needs to be flexible to deal with Australia’s fluctuating demand and pointed out that Australia is the most competitive marketplace in the world.  “I don’t think it’s any secret that it’s a very tough environment to be working in, sales probably aren’t where we’d love them to be, it’s really crucial that we’re able to take this kind of measures and implement Market Response Days.” He added that he  believed the majority of the workforce understood the company’s position

The companys Market Response Days represent less than 4 per cent of GM Holden’s total production for 2012 and are a common measure for aligning production with demand in a competitive marketplace. “It is crucial for the long-term health of Holden manufacturing that we are able to stay lean and respond to the market.” Mr Poppitt said.


AUSTRALIA: The Cost of Keeping General Motors ‘Holden’ Local

Posted: March 25th, 2012 | Author: | Filed under: Auto News, General Motors, Holden | Tags: , , , , , , | Comments Off on AUSTRALIA: The Cost of Keeping General Motors ‘Holden’ Local

General Motors HoldenBack in January we posted ‘The Cost of  Keeping Automakers Local’ Reporting that sales of the Australian made large cars – Holden Commodore and Ford Falcon – had dropped alarmingly in recent years. The Commodore’s 15-year run as Australia’s best-selling vehicle was ended abruptly in 2011 by the Japanese manufactured Mazda3, while Ford Falcon sales plummeted to fewer than 19,000 units in 2011.

And asking the question: So Exactly How Much Does it Cost to Keep Auto Makers in Australia? This past week Australian Government has answered the question by handing General Motors Holden more than $AU275 Million. Read the full article »»»»