Holden closure

[johnydep]

http://indaily.com.au/opinion/2013/1...growth-agenda/

There is no doubt that governments around the globe continue to provide explicit and implicit subsidies to industries they see to be of strategic importance. But that should not push Australia to provide unthinking and unquestioning support to industries. Yes, industries such as automotive construction are important, but not so critical to national economic performance that we cannot rethink how we respond to change or plan for their future.

Australian governments often respond to economic change through programs of assistance that seek to prop up firms in the short term, but such measures are – by design – reactive and defensive rather than forward-looking. Too often they lack the transformative capacity needed to bring about the fundamental reform of an industry that is required to guarantee their future.

Recently the European Union has published some highly relevant reports that have reflected upon the experience of its member nations and the programs that the EU funds directly. There are clear messages that come from this body of work, including:

• there is a need to focus on the development of skills within the work force in order to ensure long term competitiveness within either the affected industry or other industries that may emerge;

• the most effective actions focus on improving the productivity and competitive position of Small and Medium sized Enterprises in the supply chain. Helping them makes the end user plant more competitive and adds flexibility to the local economy; and,

• programs need to take a medium to long-term perspective and recognise that building a competitive position within the global economy takes time and sustained effort.

Australia has been experiencing profound economic change since the 1970s, a process that was accelerated in the 1980s as the economy was deregulated.

The manufacturing industry benefited at first as the Australian dolllar plummeted to 55c US, but such levels are unlikely to reappear in the foreseeable future. The challenge, therefore, is to develop intelligent industry policies.

Such policies cannot be simple handouts to individual industries or businesses, instead they need to be the manifestation of well-considered strategies to build long term competitiveness. They need a labour market component, a focus on research and development, a whole of industry perspective and a vision for the future.

The closure of major plants such as the GMH plant is not a trivial matter: many currently employed in such places will struggle to find employment in the future and we may need to face up to a harsh reality that sees us discount the future of the current generation of workers, and instead concentrate on ensuring employment for their children and grandchildren.

Some European regions have seen a resurgence in their manufacturing sectors.

England’s Midlands has been reborn as a manufacturing district, partly because of a significant fall in the value of the British pound. But before that, locally-informed action by Advantage West Midland and the West Midland Regional Development Agency, helped the region transition away from conventional manufacturing to advanced manufacturing. In Tampere, Finland, the value of focussing on skills was demonstrated with the demise of Nokia. The presence of a significant cohort of software engineers attracted new investment into the city including new Intel and Samsung facilities.

Economic development and growth has never been easy and the new global economy has made the challenges even greater. To be successful as a nation and as a set of communities we are going to need all parties – governments, unions and industry – to set a new agenda for growth.

[vztrt]

Originally Posted by EF_6

Yes and no......Labor put us into 300B of debt and Hockey just had to borrow another 200B to get us out of the mess...... Plus interest!

And then Holden wanted another 150M to keep going as well....... Were nearly in as much trouble as the U.S you know....Just on a much smaller scale!

Bahaha yeah ok. Our debt is 20% of GDP and the states are running at 100%. Just like US. I wish my debt was only 20%.

[cheap]

Originally Posted by Sprint

This is not a political statement but rather a personal one, Rudd would never of let this happen to our country but poor Tony has been boxing too much it seems, it proves his decision making skills are not worthy of PM.

Again this is a personal statement about Tony's character.

FWIW, People who actually know him say he is a genuine guy.

FWIW, I have emailed Tony on several occasions and got a reply each time, unlike Rudd/Swan and a host of other ALP figures... go figure.

[Sprint]

Originally Posted by EF_6

Yes and no......Labor put us into 300B of debt and Hockey just had to borrow another 200B to get us out of the mess...... Plus interest!

And then Holden wanted another 150M to keep going as well....... Were nearly in as much trouble as the U.S you know....Just on a much smaller scale!

Yes but maybe Kev was really keeping us from a global recession , New leader and low and behold, its guna happen now.

Atleast with factories in place we can work our way out of dept. we wont be making money on nursing homes and tourism, we will probably have to sell off more of the country to foreign owned assets.

Unfortunately it takes spending money to make money in western economics, its really un-sustainable just like any other empire in history.

[TC200six]

A young female journalist's "expert" opinion.

Good riddance to the emotional symbolism of car manufacturing

Elizabeth Knight
December 11, 2013 - 10:17PM

Good riddance to the great Australian con – that we needed a local car manufacturing industry.

We as Australians really need to move on. We need to recognise that an unnatural portion of our nation’s conversation has been devoted to the retention of an Australian car manufacturing industry – one in which we carry no natural economic advantage.
Holden has announced that it will cease local production of the Commodore by 2017.

Holden has announced that it will cease local production of the Commodore by 2017.

GM is teaching Australia a very clear lesson: they are closing up shop because it is in their commercial interests. Our future lies in innovation – not propping up an industry that serves no purpose other than an antiquated sovereign status symbol.
Advertisement

The future of Australian manufacturing has been written off too quickly. Productivity in many areas has been progressing at an improving clip. And while recent studies from the Grattan Institute show that manufacturing’s share of the economy has been shrinking it has also been moving up the technology scale.

But more importantly, if the tax and regulatory frameworks that foster innovation were developed, the natural commercial advantages that we possess as a highly educated society could be capitalised.

Maybe if the focus was shifted to the opportunities squandered by ignoring innovation, rather than the sometimes dubious calculations of the multiplier effect on the economy of building assembly line cars, Australia could get an edge on all those other OECD countries that also prop up ailing car manufacturers.

Successive Australian governments have been sucked into an agenda set by a handful of foreign car makers who have been masters at manipulating the public relations propaganda.

'Perfect storm'

Treasurer Joe Hockey doesn’t need to explain it – the head of GM in the US, Dan Akerson, made the case all too clearly.

‘‘The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automobile industry faces in Australia, including 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.’’

The fact that Australia has persevered as long as it has is one of the more staggering elements in this vexed and emotionally charged debate.

Part of this has been nurturing the myth that without a local car manufacturing industry we will lose a set of manufacturing skills and a support industry for components.

Innovative Australian car component makers have been supplying the car makers in their offshore operations and many will continue to do so.

The loss of jobs on the shop floor is perhaps the only legitimate argument pertinent to this debate – but it is not even near sufficient to justify the billions in contrived handouts that have been gifted to the foreign based manufacturers.

And while the subsidies have been large and long-lived the key to whether they are justified is not their size but their symbolism.

[GASWAGON]

Her article is probably justified.....Especially about the all the handouts but i'm just not sure where all this innovation and technology is going to come from?

And she does'nt seem to concerned about the flow on effects to suppliers let alone the factory worker?

I dont think anyone will know the 'real' effects until actually happens?

[my_gxl]

Lovely address by Bill shorten, having a crack at the LNP for losing Holden. Haven't heard the same idiot say, yeah ALP stuffed it with Ford. Hypocrite

[johnydep]

Originally Posted by my_gxl

Lovely address by Bill shorten, having a crack at the LNP for losing Holden. Haven't heard the same idiot say, yeah ALP stuffed it with Ford. Hypocrite

+ Mitsubishi

[malazn mafia]

Originally Posted by DanielXR8

Victa isn't Australian owned or manufactured anymore. Like everything else we let it go.

We stand to be a third world nation with first world incomes until the holes we dig run dry. Then the reality of what we have left our grandchildren will hit - nothing.

http://www.victa.com/au/support-centre/faqs/

Victa begs to differ.

[GASWAGON]

Mike Devereux press release today at 12 pm.....16 minutes long. GM are sympathetic with aussies for the last 60 yrs but its time to go!

http://www.theaustralian.com.au/nati...-1226781280825

[Pepscobra]

Holden asked for $500M to stay open.
They didn't get it.
That's $170,000 for each of the 2,900 people that will lose their jobs.

What's my point?
Give that money to the workers who will then spend it on the local economy rather than GM who send their profits back to the US.

I'm sad - very sad - to know that Ford and Holden local manufacturing will be gone in a few years, but I believe the right decision by the Government to cut financial funding was made.

What I am very strongly against is our current import and taxation policies which are threatening anything made in Australia.

[HSVKILLA]

http://www.goauto.com.au/mellor/mell...257C3E00834698

[b0son]

Originally Posted by Pepscobra

Holden asked for $500M to stay open.

But Gillard promised them $275mil, and that would see them commit to 2022.

Only 18months later, they want another $500mil.

Nice extortion racket that.... do we get any of the $275mil back?

[JG34JA]

aaand bang on 4 we have an ASX 200 close below its 200 day moving average. I guess that's a +1 to the Efficient Markets guys (who believe that price incorporates all current and future known events instantaneously...) Probably more impressive was the XVI spike...

[GASWAGON]

Originally Posted by HSVKILLA

http://www.goauto.com.au/mellor/mell...257C3E00834698

So now its 2,900 + another 400.....That did'nt take long!

[GASWAGON]

Originally Posted by JG34JA

aaand bang on 4 we have an ASX 200 close below its 200 day moving average. I guess that's a +1 to the Efficient Markets guys (who believe that price incorporates all current and future known events instantaneously...) Probably more impressive was the XVI spike...

Can you simplify that for all us nuffies please?

[Sprint]

Originally Posted by Pepscobra

Holden asked for $500M to stay open.
They didn't get it.
That's $170,000 for each of the 2,900 people that will lose their jobs.

What's my point?
Give that money to the workers who will then spend it on the local economy rather than GM who send their profits back to the US.

I'm sad - very sad - to know that Ford and Holden local manufacturing will be gone in a few years, but I believe the right decision by the Government to cut financial funding was made.

What I am very strongly against is our current import and taxation policies which are threatening anything made in Australia.

Except the true figure to it will be 10,000 - 16,000 workers jobs and loss of future revenues from them.

[cheap]

Originally Posted by vztrt

Bahaha yeah ok. Our debt is 20% of GDP and the states are running at 100%. Just like US. I wish my debt was only 20%.

Debt is not good, having lots of debt is bad, but since you claim it is only a percentage of GDP, here's a suggestion:

1) The Coalition draws a line and "balances the budget" (in accounting terms it is that simple)
2) As for the 300-500 Billion debt, just pay off the interest
3) Eventually the ALP will get back in power - hand them a balanced budget but with Billions in debt

Would that work for you?

[GASWAGON]

Senators reactions.....

http://www.youtube.com/watch?v=cl5AUr_JQeE

[Sprint]

I would not be surprised if this cost the economy 10+ billion dollars per year.

[dddd]

Originally Posted by Sprint

This is not a political statement but rather a personal one, Rudd would never of let this happen to our country but poor Tony has been boxing too much it seems, it proves his decision making skills are not worthy of PM.

Again this is a personal statement about Tony's character.

Well it's a bit much to expect Abbott to be able to match up to Rudd, as we all know Rudd is a direct decedent of God himself (just ask him).

Yes I can just imagine Rudd in his cape and mask demanding the directors of GM USA to keep manufacturing in Australia and, of course, he would have them all quivering in their boots and, in no time, they would have reversed their decision to close down a plant that loses millions. What will we ever do without him (but let's just not mention anything about fringe benefits tax crackdowns, I mean even God is allowed to make a mistake isn't he).

But seriously though, just ask yourself a simple question, who's policy changes have contributed to the demise of the Aussie auto industry? Was it your beloved socialist leader Rudd, or that dirty capitalist pig Abbott, that just happens to have been in power a whole two to three months and thanks to the senate, has hardly changed a thing other than officially ruling out Rudd's crack down on the previously mention FBT (damm we weren't going to mention that) ???????

On a more positive note this post has given me the best laugh I have had all day

[Joe5619]

Originally Posted by b0son

But Gillard promised them $275mil, and that would see them commit to 2022.

Only 18months later, they want another $500mil.

Nice extortion racket that.... do we get any of the $275mil back?

The 275K was for funds for 2017 onwards. The government hasn’t given them that money for the government to "get any back"...

[Joe5619]

As much as I don’t want Ford or Holden to close, I think (from what I’ve read), the amount of money being asked for was just too much. I think the right call has been made here unfortunately.

I'm more ****ed at the governments of the last 10-15 years (& that is Howard, Gillard & Rudd). They did nothing but hurt this industry to death. They are to blame, not he government of a whole 3-4 months.

[peter j]

On a lighter note I think I will stock up on Holden badges to resell in a few years to the Chev guys .

[b0son]

Originally Posted by Joe5619

The 275K was for funds for 2017 onwards. The government hasn’t given them that money for the government to "get any back"...

ok.

but why has the amount needed almost doubled, in only 18 months?

at that rate, we'd have to be giving them $1bn by 2015.

[Joe5619]

Originally Posted by b0son

ok.

but why has the amount needed almost doubled, in only 18 months?

at that rate, we'd have to be giving them $1bn by 2015.

Why it double, I have no idea. But again, it was not for money payable until 2017. So 1bn by 2015 is wrong. I would have been $xxxM from 2017. All the money getting talked about was not for now or next year, it was from 2017.. It is not going to happen anyway, so no need to worry!!

[cheap]

Originally Posted by EF_6

Senators reactions.....

http://www.youtube.com/watch?v=cl5AUr_JQeE

Kim Carr at his subliminal best "less than $150 million p.a all it would have taken to save GMH"

Here's a thought for Mr Carr and his Green cohorts - how about repealing the CO2 tax - bingo a $100+ million saving to GMH and it wouldn't cost the taxpayer a cent!

We'd probably have avoided this mess altogether...

[Dr Smith]

Originally Posted by ford man xf

And yet we all enjoy cheaper consumer goods like TV's, DVD players and any other electronic gadgets you can think of, you can't have it both ways.



I think you'll find that the Labour government that you so faithfully support was in part responsible for that, was it the 4 Cylinder Falcon or the LPG Falcon they knocked back because it wasn't "Green enough"?
Tony Abbott on the other hand absolutely loves his Ford Territory, he has raved about it publicly quite a few times, he just can't get enough of it.

Yes he raves about his Territory but on 3AW he praised the car and then bagged Ford for not chasing harder in exporting it. He conveniently failed to mentioned he was part of the government in power which signed the FTA with Thailand and when the Thai's slapped on a financial penalty on imports of a certain engine size they immediately killed the importation of Territorys whilst the Toyota Kluger escaped the same financial penalty even though it's the same class of car.

[russellw]

It is a sad day for this country - not because we are losing another car manufacturer (with the remaining one not far behind) but because we are losing our capacity to manufacture along with (eventually) the skills to even do so.

We could be here for weeks finding reasons as there are plenty of them but they are all founded in the past and understanding them isn't going to change anything now.

If I wanted to find a single reason from my own perspective I'd be inclined to think that it was really unlucky for this country that our (original) Big Three were spin-offs of the Detroit Big Three with all the arrogance, inefficiency and sometimes sheer stupidity that led them to the fate they met in the USA and the one we are witnessing here and now.

They had a lot of wake up calls along the way.

We may denigrate the Button plan but it was designed to encourage our manufacturers toward greater efficiency and world class production and to some extent it succeeded.

Likewise with tariffs - they weren't removed overnight but through a transition period designed to allow our manufacturing industry time to make up the gap - it was considerably less successful strategically as it killed off a lot of our manufacturing and all of our textile industries and the subsequent one-way free trade agreements have just added insult to injury.

Finally- and most damningly; the market has been saying quite clearly for the last two decades that it didn't have much of an appetite for the large 'traditional' Australian family car. A lot of reasons behind that one that I won't bore you with but the decreasing share that the large market segment has held over the last decade particularly should have been ringing alarm bells somewhere.

It didn't or if it did it fell on deaf ears, arrogant ears or just stupid ears...or maybe even ears that didn't have any other choice but to accept the inevitable and that, as they say in the classics, is that.

Cheers
Russ

[auIILTD]

I don't normally post in this area, but hopefully to lighten the mood, this was emailed to me today. I know that we shouldn't laugh at the loss of Aussie jobs, but hey, this Holden. Not even barely Holden now.

























Meant of course in fun. Please do not take it too seriously people.

Stu