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GM Holden News

Holden to cease local production in 2017

Holden VF Calais

News has come through from General Motors in Detroit confirming the inevitable: Holden will stop making cars in Australia in 2017.

GM’s full statement can be read after the break, but here’s a few snippets:

“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.”

…

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.

…

Since 2001, the Australian dollar has risen from US$0.50 to as high as US$1.10 and from as low as 47 to as high as 79 on the Trade Weighted Index. The Australian automotive industry is heavily trade exposed. The appreciation of the currency alone means that at the Australian dollar’s peak, making things in Australia was 65 percent more expensive compared to just a decade earlier.

This may have been a day we knew would come, but it doesn’t make it any easier to accept. We hope those many thousands of workers who will lose their jobs are able to minimise the impact they will face.

Ford 2016; Holden 2017; how long until Toyota pulls the plug?

[Pic: GM Corp]

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Ford Holden News Toyota

The elephant in the assembly hall

Holden VF Calais

The future of Australia’s automotive manufacturing sector has been in the news quite a bit lately. The decision by Ford to cease local manufacturing in 2016 has certainly helped. But increased scrutiny has also brought government assistance to the automotive sector into the spotlight.

In the face of declining sales the public is asking why the government is spending so much to support local manufacturing if the multinational companies making merry with our taxpayer’s loot are just going to leave anyway.

So the Federal Chamber of Automotive Industries is here to put things right. They’ve commissioned a report to investigate what would happen to the local economy if Holden and Toyota were to follow Ford’s lead and close down their factories by 2018.

The magic number produced by the FCAI report is $21.5 billion. Apparently that’s the size of the hole our economy would find itself dealing with if cars were no longer made in Australia.

As it currently stands Australians contribute $18 each on a per capita basis to come up with the $500 million passed on to the automotive sector. According to the FCAI report that investment gives a return of $934 per person, bringing us back to the impressive $21.5 billion figure.

That’s a pretty good return on investment, don’t you think.

You can download the FCAI report here (1.8mb PDF), all 86 pages of it. Yet in the whole report just two thirds of a page is set aside to discuss the demand for the motor vehicles made in Australia.

It’s true a potential $21.5 billion hit to our economy is no laughing matter, but unless the FCAI can come up with some buyers, you know, actual people who want to buy our locally made cars in sufficient numbers, then isn’t the end inevitable?

[Pic: GM Corp]

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Holden

New Holden hatch ready to Cruze into Paris

Chevrolet Cruze

This rather stylish looking hatchback is a Holden Cruze. It will have its first public reveal in a few weeks on the Chevrolet stand at the Paris Motor Show. The car has been designed and built by Holden’s Port Melbourne design studio.

The Cruze will be made in Australia and is set to roll off local production lines towards the end of next year. It’s no Astra, but it’s still a pretty handy looking piece of kit. Thankfully, the Holden version won’t share that unfortunate Chevrolet nose.

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