Holden 'to close Australian operations in 2017'

[crawf]

Everyone knew it was going to happen...

Holden 'to close Adelaide operations in 2017'
http://www.adelaidenow.com.au/business/ ... 6780247370

BREAKING NEWS: HOLDEN will close its Australian operations, including Elizabeth in 2017, the company has told its South Australian workforce.

In a statement, the company says it will discontinue vehicle and engine manufacturing by the end of 2017 and significantly reduce engineering operations in Australia.

About 1600 positions at the Elizabeth plant will be "impacted", the statement says, and about 2,900 across the country.

The announcement comes only one day after Holden chief executive Mike Devereux said that no final decision had been made about the company's future in Australia.

Mr Devereux said emphatically yesterday that no decision had been made to close the company's assembly plants despite growing speculation production would stop as early as 2016.

It also comes as General Motors overnight named global product development chief Mary Barra as the new CEO of the company.

Acting Prime Minister Warren Truss said Mr Deveraux told him about 1.20pm SA time the decision had been "made in Detroit" that the company would be "closing a significant part of their operation" in Australia and New Zealand by the end of 2017.

"We regret the fact that GM is to phase down its operations in this country," Mr Truss told Parliament.

Amid uproar in Parliament from Labor MPs, Mr Truss said the Government "wanted Holden to remain manufacturing cars in Australia".

Mr Truss said the government stood ready to assist sacked workers and to support dealers and employees.

Earlier on Victorian radio station 3AW, Treasurer Joe Hockey predicted job losses were "greatly exaggerated"

Mr Hockey said only 2000 jobs were directly related to making cars - 1760 in South Australia and 200 in Melbourne.

Outgoing CEO and chairman Dan Akerson said the decision to end manufacturing in Australia reflected "the perfect storm of negative influences the automobile industry faces in the country".

"(It includes) 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," he said.

Mr Devereux said an important priority over the next four years would be the "best possible transition for workers in South Australia".

"This has been a difficult decision given Holden's long and proud history of building vehicles in Australia," he said. "we are dedicated to working with our teams, unions ... and governments to support our people."

The company will move to a national sales company in Australia after cutting its manufacturing operations.

"Moving forward, our

Ms Barra will be the first female head of a major US car company.

Ms Barra, 51, will replace Dan Akerson on January 15. Mr Akerson, 65, chairman and CEO, moved up his retirement plans by several months because his wife, Karin, is battling advanced cancer, the company said.

[rev]

Disgraceful!

Holdens made in South Korea..yuck.

Mr Hockey said only 2000 jobs were directly related to making cars - 1760 in South Australia and 200 in Melbourne.

Only 2000 jobs? This man is a f***** idiot. If it wasn't already proven by his constant bitching about Labors debts, and then he turns around and practically abolishes the debt limit when they get into government, then this should do it.

So I guess the tens of thousands of people employed making components and parts for Holden, Toyota and Ford, will just keep making parts for non existent car factories in Australia.
It's not like GM has selected them, if any of them at all, for their global car platform plans to be suppliers globally.


Good bye what's left of the Australian car industry.
Well done to all the past governments who allowed all these cheaper Asian made cars to flood our market with no tariffs.

Interestingly, Australia just signed a FTA with South Korea. I wonder if it included vehicles.

[Phantom]

Disgraceful?

I'd go as far to say infuriating. What an absolute joke that it has been allowed to get to this.

[[Shuz]]

Good. I'm glad they're closing up shop. This is a free market capitalist society after all. If a business isn't viable, it should cease to exist. I am fervently against any government subsidies being given to businesses and industries to 'prop' them up.

Rejoice!

[Waewick]

I wonder what the unions will demand now

[skyliner]

Will be more than interesting to see effects on SA and plans to handle this. The gov't seemed to infer their standing behind SA in development of 'new' industry. Overall a real body blow to SA.

It is well to say we are a free market capitalist economy but in reality this is not the case. WE have been behind subsidies for so long that a sudden wrench will only cause big damage. This has to be gradual.

[serca]

it's sad thats it's an end of era and many families will struggle as a result of this but, Who do ou blame?

You can't single any one political , industrial or person out ..... It's all been a knock on effect that has resulted in this

Australian business structures and policies are somewhat to blame. How can any business be feasible and profitable in Australia? Especially in industries competing against Asia etc. When you have low skilled workers on $X amount of dollars per hour (over paid for their skills), with sick pay, annual leave, long service leave, maternity leave , Work cover levy , Super, penalty rates, bonus's , etc etc etc , well no shit the numbers begin not to add up and business fails.

Aussie's have it too good something I realised when I go abroad . Many other countries both Western and developing work harder for their dollar . Simple as that!!

[The Scooter Guy]

So this could mean the Adelaide Motor Show (that I thought it was going to return in 2010) will never ever be returning?
As if Abbott was saying to Ford & GMH, "Shut them down! Close them off! Factories that pollute like that shouldn't be allowed!"
So honk if you dare!

[Dog]

It's probably never been viable to build cars in Australia without tariffs or government support but all previous governments have thought it in our national interest to have an industrial capacity to build motor vehicles.
Our Industrial capacity was the sort of thing that gave us the edge over our less developed and more populous neighbours like Indonesia (who have incidentally just opened a new GM factory)
After the Second World War the Australian government realised just how vulnerable we actually were, if it wasn't for our very brave diggers in New Guinea we could have been over run. It was then that both sides of politics decided Australia needed an industrial base, if for nothing else than to defend ourselves.
Where do we stop? Why prop up farms with $b's in drought relief or give tax deductions on fuel, why bother growing oranges to see them left on the ground as it's cheaper to bring them from South America. Why have software designers, accountants, why have Australian shop assistants when you can shop on line.
What can't be done cheaper in India or China or Indonesia? What do we give up?
We can no longer refine fuel, produce white goods, build planes or ships
Perhaps it would be more economically rational to tender out our Border security to the Indonesians.
It sickens me to read and hear all the self-centred individuals begrudging the use of their taxes to support anyone else.
They need to really look at what they do themselves, how productive they actually are, are they doing anything to build a better stronger Australia or doing something that could not be done cheaper overseas. Because when they cry out for help when their job goes overseas no one will be listening.







Sent from my iPad using Tapatalk

[Dog]

So this could mean the Adelaide Motor Show (that I thought it was going to return in 2010) will never ever be returning?
As if Abbott was saying to Ford & GMH, "Shut them down! Close them off! Factories that pollute like that shouldn't be allowed!"
So honk if you dare!

RIP, Clipsal 500, Bathurst, Wheels Magazine, with out Aussie Ford an Holdens' who will really care?


Sent from my iPad using Tapatalk

[JAKJ]

It's probably never been viable to build cars in Australia without tariffs or government support but all previous governments have thought it in our national interest to have an industrial capacity to build motor vehicles.
Our Industrial capacity was the sort of thing that gave us the edge over our less developed and more populous neighbours like Indonesia (who have incidentally just opened a new GM factory)
After the Second World War the Australian government realised just how vulnerable we actually were, if it wasn't for our very brave diggers in New Guinea we could have been over run. It was then that both sides of politics decided Australia needed an industrial base, if for nothing else than to defend ourselves.
Where do we stop? Why prop up farms with $b's in drought relief or give tax deductions on fuel, why bother growing oranges to see them left on the ground as it's cheaper to bring them from South America. Why have software designers, accountants, why have Australian shop assistants when you can shop on line.
What can't be done cheaper in India or China or Indonesia? What do we give up?
We can no longer refine fuel, produce white goods, build planes or ships
Perhaps it would be more economically rational to tender out our Border security to the Indonesians.
It sickens me to read and hear all the self-centred individuals begrudging the use of their taxes to support anyone else.
They need to really look at what they do themselves, how productive they actually are, are they doing anything to build a better stronger Australia or doing something that could not be done cheaper overseas. Because when they cry out for help when their job goes overseas no one will be listening.







Sent from my iPad using Tapatalk

Perhaps a little dramatic but some good points. Manufacturing skills are a strategic asset to the country.

As for letting the "free market" decide that is a fallacy. All major industrial countries subsidise there industry in some way, whether that is through currency manipulation, indirect tariffs or legislative/ cultural barriers to entry. The reason why Australia, a relatively costly (e.g. having to comply with ADR rules) market to sell vehicles in has such a diverse car market is that we lack those indirect barriers to entry and on per worker or per unit basis do not support the industry to the extent that others do.

In terms of the implications of the loss of the manufacturing industry, that is uncertain. But it will be incredibly difficult and costly if not impossible to rebuild if we need to once it's gone.

[Nathan]

RIP ... Wheels Magazine

Yep, that's the big loss in all of this.

[Will]

Good. I'm glad they're closing up shop. This is a free market capitalist society after all. If a business isn't viable, it should cease to exist. I am fervently against any government subsidies being given to businesses and industries to 'prop' them up.

Rejoice!

This is bullshit Shuz. Every country that builds cars has some kind of government support, one way or the other - tariffs or handouts.

Today is a black and shameful day for Australia. We have become the first OECD country to stop building cars.

I don't understand how destroying the car industry in Australian is in our best interest. How is sending thousands of workers into the scrap heap in our benefit? How is destroying an entire industry, one which created thousands of indirect jobs in our interest? How is becoming the first OECD country to stop building cars in our interest? and finally as a South Australian, how is destroying our state economy and sending us into a recession, from which we will take years (if ever) to recover from in our best interest?

All those ideological fanatics who support this move should bow their heads in shame. You have just sent a crushing blow to your own state....

[Will]

It's probably never been viable to build cars in Australia without tariffs or government support but all previous governments have thought it in our national interest to have an industrial capacity to build motor vehicles.
Our Industrial capacity was the sort of thing that gave us the edge over our less developed and more populous neighbours like Indonesia (who have incidentally just opened a new GM factory)
After the Second World War the Australian government realised just how vulnerable we actually were, if it wasn't for our very brave diggers in New Guinea we could have been over run. It was then that both sides of politics decided Australia needed an industrial base, if for nothing else than to defend ourselves.
Where do we stop? Why prop up farms with $b's in drought relief or give tax deductions on fuel, why bother growing oranges to see them left on the ground as it's cheaper to bring them from South America. Why have software designers, accountants, why have Australian shop assistants when you can shop on line.
What can't be done cheaper in India or China or Indonesia? What do we give up?
We can no longer refine fuel, produce white goods, build planes or ships
Perhaps it would be more economically rational to tender out our Border security to the Indonesians.
It sickens me to read and hear all the self-centred individuals begrudging the use of their taxes to support anyone else.
They need to really look at what they do themselves, how productive they actually are, are they doing anything to build a better stronger Australia or doing something that could not be done cheaper overseas. Because when they cry out for help when their job goes overseas no one will be listening.







Sent from my iPad using Tapatalk

Well said.

The sad fact of living in an extreme capitalist society is that everybody resents helping others, until they, themselves require help.......

[crawf]

We have become the first OECD country to stop building cars.

Toyota is the last remaining car manufacturer here. Though I'm sure their days are numbered aswell.