It would seem that manufacturing operations at GM’s Australian subsidiary Holden are always on the brink, as the country’s strong currency conflicts with a desirable business case for producing vehicles locally. That said, Holden is committed to keeping its Elizabeth manufacturing plant open until 2017, but that could be the last of it.
A new report from Australia’s Daily Telegraph states that without additional assistance from the country’s government, the Holden plant is likely to close. Holden says it costs $3,750 AUD more to make a car in Australia than it does in other General Motors factories, with labor making up 65 percent of the actual manufacturing cost.
“If Holden go to Detroit in September without Federal Government support, you will not have a Holden factory here beyond 2017,” said John Camillo, the Australian Manufacturing Workers’ Union SA secretary speaking to Holden staff in a meeting. In September, a meeting between GM and Holden executives will outline the next stage of upgrades to the plant (pending approval) and to prepare the factory for the next-generation D2XX-based Cruze compact car range and Commodore sedan to be built beyond 2016. But should the outcome of the country’s upcoming political elections change Holden’s plans, there is fear that GM will not go through with the planned additions to and investments in Elizabeth.
Comments
The next Captiva will be based on the Cruze; so an additional vehicle could be assembled there. Additionally, gear-heads won’t like this, but if the next Commodore range is based on the Epsilon, then they can assemble the Malibu, Commodore, and a Traverse type of vehicle.
GM must push down wages and benefits to compete against other makers who import; otherwise, GM will become irrelevant in Australia, but still on the hook to pay legacy costs. Manual labor assembly jobs are no longer middle class jobs in the developed world, except for auto companies. Unions want them to be, but they are not. Personally, these types of jobs should be thought of similarly as one would a job at UPS. A job for young people who are saving for college or still looking for a career path.
* “Rev heads” in Australian
GM would lose all of its market share if Holden, Australia’s car brand, was to be import only. The imports only sell because they wear Holden badges imo.
Hopefully our dumb-ass government (due to be replaced in a Septermber Election) who are known to give out money for no reason at all, will continue to give out money to the Auto industry. Hopefully the next government will as well but will make sure GM executives do something with the money. I want to see these production improvements overtime:
– Continued Cruze production at Elizabeth or other AUSTRALIAN plant and introduce production of the wagon.
– Continued engine production at Port Melbourne but producing a new V6 that is better than the current 3.0L, a new and improved V6 for the SV6. Maybe even make the 6.0L V8 so to cut import costs.
– A Hybrid V6 at least, for a VF Commodore Evoke Hybrid, VF Commodore Calais & Calais-V Hybrid and a WN Caprice Hybrid.
– Mid-Life model upgrades for VF Sportwagon and Ute to replace the old VE rear ends and complete exterior re-design for WN Caprice.
– Continued production of Commodore, Sportwagon, Ute and Caprice.
– Introduction of a Commodore based RWD & AWD SUV to replace the Ford Territory in the market.
– Further introduction of fuel saving technologies on local produced products
– Guaranteed export program for Commodore, Caprice and the SUV to areas outside Australasia that Holden makes a profit on
– Unions have no say in where money goes unless government agrees
– No employee wage increases, they earn more than they are worth as it is
– Legally binding agreement to meet above demands and continue production to a set date in future.
– Failure to meet above demands by the set date will result in transfer of ownership of Holden, its plants and offices, employees, copyrights etc. to the Australian Government.