An Australian-based private consortium is in talks to take over Holden’s Elizabeth plant and continue making cars beyond 2017.
The consortium’s managing director, Ashley Finn, said he and a group of other investors were speaking with General Motors about buying the plant, News.com reports. The talks also involved the possibility of getting the rights to the Holden brand and its intellectual property. Holden Corporate affairs executive director, George Svigos, said the company would not sell its name and that it is “completely committed to the Holden brand and intends to sell Holden cars for many years to come”.
Fenn said the consortium is willing to work with other automakers to save the thousands of jobs that will be lost when the plant shuts down in 2017. He also said that state and federal governments, as well as the workers union, had been briefed on the plan. Fenn and his partners were ready to offer up $750 million to save the plant.
Australian Manufacturing, Innovation and Trade Minister, Tom Kenyon, told News.com that the State Government was in talks with Fenn and his partners and treating their offer seriously.
“They’re doing work, talking seriously to GM and, if they’re successful down the track, then that would be a good result for South Australia,” Kenyon said. “They’re not to be dismissed. Their goal is to manufacture vehicles in SA (South Australia).”
Fenn said he and his partners began working on a sustainable business model for manufacturing cars in Australia six months ago, when Ford first announced it would end its Australian manufacturing operations.
“We really go into industries and companies and do turn arounds. What we’ve been able to do is collect some of Australia’s best thinkers in this field,” said Fenn. “We’ve also been talking with financiers and capital partners. Our ultimate intent is to continue to manufacture cars in South Australia.”
Fenn said he and his partners are confident that the global car industry will grow and that an Australian based company focusing on both domestic sales and exports could be profitable. He also said it was possible for them to develop a completely new model if an established automotive manufacturer doesn’t jump on board.
“We don’t know whether we’re buying just a plant, whether we’re buying a plant with the platform and the name or it’s a walk-in-walk-out-type scenario on the business,” Fenn said.
Kenyon said he would work alongside the consortium to help them move forward with their bid.
“GM is taking them seriously and I wouldn’t want to be so skeptical that I missed an opportunity. I’m happy to work with them to try and progress it,” he said.
Comments
Here’s hoping…
I would be shocked if this went through.
I do not expect the Holden name to be sold.
I do not see GM selling the old car and if anyone bought it this would be difficult to continue as it is so tied to GM.
I do see the plant being sold and someone could move a new model in if they could find a way to make a profit.
I do hope something happens just for the sake of the workers.
This is like Saturn it is a tough deal. Roger Penske a master at business looked into Saturn and even walked away after looking at it 16 different ways.
I just do not see this working but who thought the Corvette Museum would fall in too.
The source article was written before Toyota announced their pullout (all three manufacturers have made their announcements within 9 months of each other. Extraordinary). Toyota’s decision wasn’t anticipated to be made until mid-year with some speculation they pushed the decision back until later in the year. I say this has dampened confidence a lot due to the inevitable collapse of much of the supplier network some of which would have been shared with Holden. Although from what I understand they are still looking at going ahead with it.
Whatever they are planning to do it has to be specialised and niche. They would be mad to think they can build mainstream model vehicles alone. You need to be part of a larger organisation to survive hence my earlier suggestions of a takeover of an Indian or Chinese automaker. Cars need a significant amount of money spent on design and engineering to be market competitive these days.
I think at this stage something along the lines of what Magna Steyr do would be more realistic. Magna have a man near the top who used to be manufacturing Director at Holden. Their name has been mentioned in regards to a plant buyout before. Mining vehicles and something along the lines of a refit centre for Army vehicles have also been suggested.
Would GM not license or share the Zeta plaform? Don’t they lease or have sold the Kappa platform to a Spanish sportscar maker?
The other thing is I think the Federal government have made it fairly clear now they don’t give a toss if Australia has an auto industry or not. Either that or they just wanted Ford and GM to go as they had enough of them taking taxpayer assistance while the local operations were on the slide. Toyota may have just been collateral.
Let’s hope this Consortium will be able to take over Holden and keep it going for many years to come. If no luck there, why not approach the Volkswagen Group to see if they are interested in making Holden their Australian Subsidiary ?. The Volkswagen Group owns the Czech Republic’s Skoda and Spain’s Seat. These cars are built using the same Engines and Platforms as their VW Cousins but the rest of these cars are made to their own Design and have their own Autonomous Management. The VW Group let”s these Subsidiaries the freedom to sell and export their Products to where they like. Skoda exports half the cars they produce. A VW- Owned Holden could operate the same way. A VW- Owned Holden would be a far more efficient and Astute operation compared to the current GM Holden and they would be building Holden cars to the way people want to buy. A VW – Owned Holden cars would be exported as a Holden – not a Chevrolet !. As Volkwagens and Skodas are very popular with the Australian and world Public – why wouldn’t a VW – Owned Holden enjoy the same kind of popularity – if not more so !. As the Volkswagen Group owns Audi, perhaps a VW – Owned Holden could build a Commodore and Caprice – size cars built from an Audi Platform ?.
I think Tata is Holden’s best chance at a new parent company. The own Tata Motors, Jaguar and Land Rover. 1 budget and 2 prestige but no mainstream brand like Holden.
That’s an interesting suggestion. I dont know about Jag but certainly Land Rover has been a success with Tata.
Still made in the UK I believe which is amazing on its own given the way the British Govt destroyed it’s automotive industry (oh … ther’s a familar phrase). And making a very nice turn over last year.
I dont really fancy driving a Commodore owned by Indians but I currently drive a Commodre owned by the US. So as long as it’s made here than I suppose I’m still interested.
I want one designed, engineered and built in Australia.