THE Holden Commodore of the future will be less Australian than ever before

[csv8]

THE Holden Commodore of the future will be less Australian than ever before and threaten more jobs at parts suppliers.

Sacked staff have revealed the struggling car-maker last week let go of twice as many workers than was originally reported.

Critically, about 50 people from Holden's purchasing and administration departments in Port Melbourne were secretly sacked last week.

This is in addition to an estimated 50 designers and engineers that was reported last week.

The clean-out of the purchasing department - which buys raw materials and components for locally-made cars - is the clearest sign yet that the 2017 Commodore will be sourced from mostly imported parts.

About 50 per cent of the current Holden Commodore is made up of locally-sourced components, compared to 70 per cent for the Ford Falcon and 65 per cent for the Toyota Camry, according to figures supplied by the car makers.

But less than half of the parts that make up the new globally-developed 2017 Commodore are expected to be sourced locally, bringing it closer to the Cruze small car, which has 30 per cent local content.

"There will be an impact on the local supply chain as car makers switch to global (models)," said Richard Reilly, the chief executive of the Federation of Automotive Product Manufacturers.

"If they are buying more parts from overseas it will have a detrimental effect on local parts manufacturers."

The FAPM represents 100 major parts suppliers to all three car makers; the sector employs an estimated 35,000 workers mostly in Victoria and South Australia.

Holden is yet to start negotiations with the new Federal Government under Prime Minister Tony Abbott, who in Opposition had pledged to cut $500 million from car industry funding.

News Corp understands Holden is pitching for a bigger slice of a smaller pool of funds which, in a bitter twist, would need to be shared among fewer parts suppliers when Holden switches to a globally-developed car.

Since being elected, Mr Abbott has repeated his earlier pledge to cut industry funding.

In his first media conference he told reporters: "We'll stick with the position that we took to the election."

However, Holden and the new Federal Government are likely to disagree over Mr Abbott's expectations of an export program to boost local production volumes.

"We expect the motor industry, in return for ... assistance, to provide us with a reasonable indication of how it is going to increase volumes, particularly increase export volumes," said Mr Abbott.

"I want the car industry in this country to have a long-term, viable future - I don't want it to live from hand to mouth."

But exports are not viable for Holden because, aside from unfavourable exchange rates, the two cars it will make in Australia after 2016 - when the current Commodore bows out - will be made in several other countries, including possible export destinations.

Toyota Australia reportedly loses $2500 on every Camry it exports but offsets this on the almost 200,000 imported cars it sells locally.

Holden recorded its lowest sales in 19 years in 2012, selling a little more than half the cars than did Toyota.

Among those sacked by Holden last week was a department tasked with selling off and getting quotes for the sale or scrap of manufacturing tooling.

However, Holden said the quotes were for tooling for old models and not an indication of any plans to exit Australia.

"As part of our normal business practices we have decommissioned some old stamping and press equipment," said Holden spokesman Sean Poppitt.

"We will either sell or scrap those machines as per our normal process."

Holden has previously gone public about redundancies of this size but instead workers in the affected areas were discreetly sent a text message to attend a group meeting at Holden's Melbourne head office at 9am last Thursday.

By the end of the day, workers were told in one-on-one exit interviews that they were being made redundant.

Sacked workers have told News Corp that colleagues with 10 to 20 years of experience were let go and the purchasing department was among the hardest hit.
http://www.couriermail.com.au/busine...-1226721200323
This reporter is on Twitter: @JoshuaDowling

[Nikked]

Lol, Camry more aussie!

[bobthebilda]

Its pathetic what they are able to get away with, whilst getting government money to assist them doing it. Theres alot more Australian owned businesses that we would get more bang for our buck if we steered the money towards them.

[GQ_Smooth]

Nothing new there scoop, relatively easy to research information. Unfortunately hasn't given Ford any benefit the Falcon being more "Australian" than the competition. If anything it's one of the reasons they are the first of the "big 3" to go.

[stazza]

Just pull the pin already Holden.

[EDManual]

30% is sad! I wouldnt call the cruze australian, so the commy wont be either.
How much work is there actually for australia to put a kit Cruze together anyway?
What do we do for that, stamp a few panels, weld it together and paint it I suppose, everything else is imported and installed.
Guess the commy will be the same. Sad sad sad....

[Gobes32]

Isn't it amazing, now Ford is dead in the water, the media have decided to start on Holden..................

[stazza]

Wish they started earlier

[Wretched]

Most of the components of local cars are sourced from OS.
In some ways it is saddening to see that price has driven offshore but in other ways it has brought some very quality components to the local cars and have opened the opportunity up for component sharing with other cars in the range.

The ZF 6spd is one example another would be the V8 blocks for the FPV cars, the V8s LS engines for the Holden and HSVs. Ford and Holden are local arms of very large organisations that because of globalisation need to consolidate much of their suppliers.

[tranquilized]

From an ideological standpoint I believe the auto industry should be supported by government to ensure its future, as its a valuable industry to have for a country.

But, importing what basically amounts to CKD kits, and employing a bunch of low-skilled workers to slap them together, with all the engineering and development work being done offshore does not classify as an auto industry. Holden should not receive one cent of government money to run their business in this manner, as it gives very little back to the community. If they can do it unassisted and turn a profit, good on them - keeps a few people in work. But it shouldn't be subsidised or assisted in any way.

[Nikked]

Its too late now, any government assistance is just applying pressure on an axe wound.

[BHDOGS]

Originally Posted by Gobes32

Isn't it amazing, now Ford is dead in the water, the media have decided to start on Holden..................

joshua douchdowling has said before he is against assistance for car manufactures hence why he puts the boot in at every opportunity

[tranquilized]

Originally Posted by BHDOGS

joshua douchdowling has said before he is against assistance for car manufactures hence why he puts the boot in at every opportunity

Of course he's against government assistance - he'd be without a job if he thought any other way. He works for the Murdoch propaganda press machine.

[BadMax]

Originally Posted by stazza

Just pull the pin already Holden.

Bit naïve aren't we?

You'll be one of the first sooking about the extra taxes for the unemployed and lest be honest those who can't be easily re-trained.

[TC200six]

If the accepted belief around here that Holden's assembly plant is terminally ill is true, I'm another one who thinks funding should be stopped.

[Jesmol]

Man, that article is a crock o-*****.

The "Purchasing" people they are talking about are not buyers, they were mainly their Supplier Quality Dept which has been recognised for sometime now as being over sized. As the parts they buy turn to more modular assemblies they need less staff, they haven't downsized that dept since VE Launch.

As for the dept getting rid of the tools, I can confirm the only stuff going at the moment is old VR/VS/VN stuff which is no longer serviced.

[Road_Warrior]

Originally Posted by BHDOGS

joshua douchdowling has said before he is against assistance for car manufactures hence why he puts the boot in at every opportunity

The issue with this guy is a lot of what he says is half arsed yet his articles get nationwide coverage – daily. News Ltd being what it is has tentacles everywhere, even in TV news so things like this get in everyone’s faces regardless of how accurate it is.

[Chopped]

Are they confirming the nameplate will live past 2016 ?

[Joe5619]

All I'm going to say is, even thou the Falcon is going, the fact that it is still 70% built here is fantastic!! Long live the Australian built Falcon!!