Job fears as Holden cuts production again

[Sprint XR8]

Car maker Holden says it will cut another 10 days of production at its manufacturing plant at Elizabeth in Adelaide's northern suburbs.

Amid falling car industry sales and global financial uncertainty, it will force workers to use more leave entitlements as it reduces production during April.

Since late last year it has lost 25 production days and says there will be 10 more days of downtime around Easter.

The Australian Manufacturing Workers Union had talks with Holden management today to try to firm up whether any jobs would go from the Elizabeth facility.

Parent company General Motors announced last month that it would cut 47,000 jobs worldwide, prompting fears about Adelaide car jobs.

Union state secretary John Camillo says Holden's 3,400 South Australian workers want to know if their jobs are safe.

"The only thing we know is there are rumours in regards to white collars to lose their jobs and so on and another shift to disappear out of [the] Elizabeth operation," he said.

Holden's workforce has just returned to the factory this week after the latest production shutdown.

There is concern the further Holden shutdowns will flow on to the components industry.

Joe Kane from the Australian Workers Union says many components workers have no annual leave left as a buffer.

"You've got a month, half the month is non-production, the other half is no pay," he said.

"I don't know how anyone or anybody can sustain that sort of pressure on their families etcetera."

Holden announced late last year that it planned to install a second production line at Elizabeth to produce a four-cylinder car alongside its bigger vehicles.
http://www.abc.net.au/news/stories/2...section=justin

[Fordman1]

35 downdays in the first quarter !!

18,000 unsold commodores, they're bottom line will look pretty sick this year....

[DoreSlamR]

Originally Posted by Barraxr8

35 downdays in the first quarter !!

18,000 unsold commodores, they're bottom line will look pretty sick this year....

At least they're tougher........

[Fordman1]

Originally Posted by DoreSlamR

At least they're tougher........

They go better...........

[ea90gl]

Just saw this on the news I was shocked they didnt end the read by saying something like Ford Aus only sold 3 Falcons in the last decade therefore are in a much much worse position

[Bossxr8]

We're pretty much only working 4 day weeks, but at least we have got our stock levels way down now, and we're only building to order now I think. It's been way better controlled than Holdens situation.

They are going to have to axe jobs sooner or later, they can't expect the market to just pick up and they can't just expect to keep losing money on wages for people they really don't need. Job cuts are inevitable.

[XR6_190]

And yet another GM Chrisis thread, what is this 4 now?

Seriously though, this is just the beginning, if GM Holden is still operating the same as they are now (that is are still building large rear wheel drive vehicles for here and abroad, under the ownership of GM) in 18 months time, then that will be very fortunate for them.

Times are tough, maybe Holden isn't that tough?

[Falc'man]

And the downward spiral begins... they've been Holdon on to their fancy slogans for too long me thinks.

The job losses are inevitable, thanks to last years credit crisis... what I don't understand, and maybe someone here can explain, is how/what/where did the $700 billion bank bailout go? Wasn't it meant to bail out the rip-off merchants (aka banks) and in turn support everything else that was reliant upon this system? Why is everything still falling apart?

[Bent8]

Originally Posted by Falc'man

what I don't understand, and maybe someone here can explain, is how/what/where did the $700 billion bank bailout go? Wasn't it meant to bail out the rip-off merchants (aka banks) and in turn support everything else that was reliant upon this system? Why is everything still falling apart?

That $700 billion has actually turned into (believe it or not) approx $10 trillion !!

The whole money system is built on debt, every US dollar that's printed is actually debt owed to private European banks. The system is coming down (has been for awhile now) but we're only now starting to see it.

The current economy cannot be rescued, when bankers say we need a bailout, what they're really saying is give us more hard earned tax-payer dollars so we can prop up this sinking ship known as the world economy for as long as possible and in the process bankrupting every one in sight!

Just another scheme to distribute more wealth to the rich.

[XD 351 Ute]

Originally Posted by Bent8

Just another scheme to distribute more wealth to the rich.

This whole financial thingo is exactly that I think.

Not that I know much about economies and such, but I'm quite sure if I go broke no-one will be handing me money to keep up the house payments.....

Ed

[Nikked]

holden has 18000 unsold commodores? thats alot...

[vztrt]

Originally Posted by Nikked

holden has 18000 unsold commodores? thats alot...

That's after the huge deals at the end of last yr, and little production this year.

[Falc'man]

Originally Posted by vztrt

That's after the huge deals at the end of last yr, and little production this year.

These VEs are everywhere, they remind of the rubbish bins you see at the front of people's homes every week. Now, another 18000 need to find homes? It'll be like having 3 bins out the front of every house at the weekly pickup.

[Windsor220]

More Holden news! Its funny you go on ls1.com and there's nothing about any of this.

[Falc'man]

Originally Posted by Torxteer

More Holden news! Its funny you go on ls1.com and there's nothing about any of this.

Just like when they're out on the road, oblivious to their surroundings....

Thanks for the confirmation of what I was thinking, Bent8. $10 trillion? hehe...

[Gobes32]

I don't wish any hatred on Holden, but I sure got sick and tired of being told Ford is going to shut down all of last year, time for the other side to see how it feels to live in fear of your job being taken away from you.

[Paxton]

Compare this with Ford, who have very little 2008 stock left, and have told suppliers to not expect any down days in the first half of 2009. Baring the unforeseen (like the loss of a supplier - DSI)

Who is in a better position now?

[uranium_death]

Originally Posted by Paxton

Compare this with Ford, who have very little 2008 stock left, and have told suppliers to not expect any down days in the first half of 2009. Baring the unforeseen (like the loss of a supplier - DSI)

Who is in a better position now?

If the media is anything to go by, Holden.
Ford is in deep and produce cars that are very good and better than Holden, but somehow, stick with Holden, because they're Australian...

Now the comedy session is over...

Ford have managed themselves better. Great.

Though I don't want to see Holden go under, I would love to see Ford gain the upper hand.
Holden can't go on with their BS bravado forever about "Australians being tough" and all that biz.

[imugli]

Oh how the mighty have fallen. 18000 of these things in stock, not to mention the 283 days stock Pontiac have of the G8. One has to ask who the hell they paid to come up with these forecasts? Bubbles the chimp?

[GTJOHN]

Holden is about as Australian as my Dad was when he came of the boat ..the same way
the designs, interior, Motor and badges all come from Overseas for the Bommodore.... The media just likes ppl to think the Dunnydore is australian.....
Pfffft ..bring back the kingswood !

[ltd]

It's the whole socialist thing that the media fawn to when at university, and much like the VW beetle of Nazi germany the commodore is known to the lefties as the "Peoples car"; that's why they champion it. Sounds a little far fetched but do yourself a favour, and ask people like Paul Gover and the other Holden luvvies who they vote for; you'll find the correlation remarkable. Finally, the ironic thing here is, the lefties in the media hate capitalism and champion Holden, yet Holden needs capitalism if it is to survive.

[imugli]

Originally Posted by ltd

Finally, the ironic thing here is, the lefties in the media hate capitalism and champion Holden, yet Holden needs capitalism if it is to survive.

Interesting viewpoint. I would see the it the opposite way...

Holden needs cash from GM and the Oz Govt. GM need cash from US Govt. Governments propping up and taking stakes in uncompetitive industries is called socialism...

[ltd]

Originally Posted by imugli

Interesting viewpoint. I would see the it the opposite way...

Holden needs cash from GM and the Oz Govt. GM need cash from US Govt. Governments propping up and taking stakes in uncompetitive industries is called socialism...

You're quite right, but from a selling point they need capitalism for the sake of people having money to buy the product.

[vztrt]

Seems Holden may shut down the 4cyl Engine plant here in Melbourne.

http://business.theage.com.au/busine...0302-8mgg.html

More car industry jobs to go
March 3, 2009

THE car industry slump is set to cost hundreds more jobs in Melbourne, with parts maker Robert Bosch slashing 12 per cent of its workforce and other firms under stress as the big vehicle makers cut production.

As the global downturn intensifies, Australia's biggest banks have also had some gloss stripped from their reputations, with a warning from ratings agency Moody's that their credit ratings could be downgraded.

But despite mounting evidence that Australia is on the edge of recession, the Reserve Bank board is likely to resist the temptation to drop interest rates again when it meets today.

In the latest sign of bleak times, Bosch will axe 170 jobs at its Clayton plant after an "unprecedented" 40 to 50 per cent drop in overseas demand for its parts, as well as a significant slowdown in Australia.

Holden, meanwhile, said yesterday it would cut production by 10 days in April at its Adelaide assembly plant, a move that will place further pressure on local parts makers.

Holden's move came amid fresh speculation that it would rush the closure of its four-cylinder engine plant at Fishermans Bend in Melbourne. The plant, once hailed as an export success story, is due to close in October, but may now be shut by June, bringing forward the loss of about 500 jobs.

Ahead of today's Reserve board meeting, there was more negative data released on profits, sales, inventories and production — suggesting Australia's economy may have contracted in the December quarter.

GDP figures for the quarter are to be released tomorrow. If the barely positive figures already reported for the September quarter are revised down, Australia will have experienced two successive quarters of contraction — the popular definition of a recession. "The news is dreadful. It shows extreme weakness no matter how you cut it," said economist Kieran Davies of ABN Amro.

"The Australian economy may have contracted by as much as 1 per cent in the December quarter."

Economists have also expressed alarm at a 6.5 per cent quarterly drop recorded in Australian corporate earnings. "Company profits are a shocker," said ANZ economist Katie Dean. "Outside of mining, profits collapsed 11.3 per cent."

An Australian Industry Group survey found that manufacturing output fell for a ninth successive month in February, and employment fell for a 12th successive month.

"We've already lost about 40,000 jobs out of manufacturing in the six months to December," said Ai Group chief executive Heather Ridout. "This suggests there will be further pressure on employment."

Treasurer Wayne Swan yesterday prepared the ground for news of a recession, warning of "a dramatic impact on growth" from developments overseas.

"Something like seven of our top 10 trading partners are now in recession and there's no doubt that that flows through quite quickly when you're dealing with trading partners such as Japan," he said.

Australian shares slid a further 2.8 per cent to a new five-year low yesterday on the back of the US and Australian news and a decision by the ratings agency Moody's to switch its outlook for Australia's top banks from "steady" to "negative".

The Reserve Bank board will use additional data to be released today to help it decide whether to cut interest rates for the sixth successive time.

Another half a percentage point cut would take the RBA's official cash rate to a new low of 2.75 per cent.

If fully passed on by banks, this would take some variable mortgage rates below 5 per cent.

But much of the bad economic news has already been factored into the Reserve's calculations and there is a feeling among its staff that the halving of its cash rate since September needs to be given more time to have its full effect.

Meanwhile, New York-based Moody's Investors Service has cut its credit ratings outlook for Australia's Big Four banks to negative on concerns about the economy and bad debts.

It is the first time since the 1991 recession that the top Australian banks — Commonwealth, ANZ, Westpac and NAB — have all had a negative outlook on their much-cherished AA ratings.

They are among only about 12 in the world to still carry a AA rating after the financial crisis crippled lenders across Europe and the US. With

ERIC JOHNSTON

[Paxton]

Didn't Holden already state they were closing the I4 factory down once the Family II engine ended production? The V6 is being built elsewhere, and would be a candidate for moving offshore.

Interestingly, nothing negative about Ford was said in that article that vztrt quoted. The media might finally be waking up.

[imugli]

Yeah, the 4cyl plant was supposed to close later in the year, but they're talking about bringing it forward to June...

[vztrt]

Bit of an update

http://www.theage.com.au/national/ho...0331-9iav.html

Holden job fears amid US shake-up

* Ben Schneiders
* April 1, 2009

HOLDEN will push ahead with restructuring plans that could lead to hundreds of staff being laid off, amid fears it will be forced to take harsher action as the American Government demands a tougher overhaul from its bankruptcy-threatened parent company, General Motors.

On Monday night, US President Barack Obama rejected General Motors' previous restructuring plan and gave the company funds to keep operating for 60 days while it came up with more stringent measures.

General Motors chief executive Rick Wagoner was also forced to step down.

Holden spokesman Scott Whiffin said the changes had no "immediate impact" but they "reinforce the need for all parts of GM to meaningfully contribute" to the parent company.

"Holden continues to work on adapting our business plans to address the challenging local and export market conditions," he said.

Holden has been in talks with unions for weeks about plans to restructure its local operations. The discussions have included when the company's Fishermans Bend engine plant would close and the future of its white-collar engineering and blue-collar production staff.

While no decision has been announced on the changes, there are fears hundreds of white-collar jobs could go in Victoria, while thousands of South Australian production staff face reduced hours and an uncertain future.

Federal vehicle secretary of the Australian Manufacturing Workers Union, Ian Jones, said the positive news from the Obama announcement was that the US Government, while demanding tougher action, was still committed to supporting General Motors.

Mr Jones said Holden was an important part of the General Motors empire. "We are very good at what we do here," he said.

The fresh concerns about Holden's future come as 54 jobs are to be shed today at a Ballarat company that makes truck trailers.

MaxiTRANS managing director Michael Brockhoff said the company had cut more than 100 casual staff in Ballarat since August.

Mr Brockhoff said demand for semi-trailers had fallen sharply.

"There's been a very significant decrease in order intake, both as a result of customers being cautious in this market and a very distinct lack of credit," he said.

Mr Brockhoff said that although there had been strong inquiries about orders — helped by the Federal Government's new 30 per cent investment allowance — this had not translated into sales because of the lack of credit its customers could get from banks.

The 54 to be laid off today comprise production and support staff.

They are the first permanent production staff to be made redundant in the downturn and Mr Brockhoff said it "really hurts".

[whales]

The rumour I heard was that GMH were going to retrench hundreds of engineers but have to wait cause they have no money for their redundacies