Think about it,
GMH needs funding to stay in OZ
Looks like even the cruze being made in Elizabeth is not enough, GM wants some Tax Payers money to stay.
SA premier seeks to keep Holden open
The South Australian and federal governments are negotiating to provide a funding package to car maker Holden to ensure the future of the company's Australian assembly operations.
South Australian Premier Jay Weatherill says Holden's parent company, General Motors (GM), is considering closing its Australian operations.
"We are, of course, urging GM not to pursue that option," Mr Weatherill said on Tuesday.
"However, we recognise that car making is a global industry."
The SA premier is in the US where he joined federal Manufacturing Minister Kim Carr in talks with GM chief executive Dan Akerson on the future of Holden's operations.
That includes discussions on an investment package from the state and federal governments that will help secure Holden's future and also the future of local component suppliers.
"In the light of ongoing speculation about Holden's future in Australia, I have come to Detroit to put South Australia's case for being a strong part of GM's future global plans," Mr Weatherill said.
"Today we received a clear message from Mr Akerson and (Holden boss Mike) Devereux that they are committed to working with government to secure Holden's future in Australia and, in particular, the Elizabeth plant."
The SA premier said it was likely the future of car making in Australia would involve a smaller but more secure industry.
"This will require us to build on those elements of our local industry which are world class and to lift standards in the balance of our industry," he said.
"This will be achieved through the agreement we are currently negotiating with General Motors.
"This agreement will involve co-investment by state and federal governments and a much closer working relationship with General Motors and Holden and component suppliers in Australia."
As part of the discussions, GM has agreed to establish a working group to look at increasing opportunities for local component suppliers in global markets.
Mr Weatherill has not disclosed the level of funds the two governments will commit, but said the package would be significant.
Mr Devereux said Holden and the state and federal governments had a "strong mutual desire" to retain Holden's capabilities in design, engineering and manufacturing.
But he said there was unprecedented competition for capital investment in manufacturing and product development for the next generation of global vehicles.
"Car makers are investing billions of dollars to develop future vehicles, so it's critical for Australia to have consistent and competitive long-term polices that make this country an attractive place for General Motors and other companies to continue to invest," he said.
"The discussions with the minister and the premier have been very positive and productive.
"We're making good progress in developing a new co-investment plan to help secure a long-term future for Holden and the automotive and manufacturing industry more broadly."
Last edited by dmacey; 10-01-2012 at 08:36 PM.
Is this it?
ill pay an extra few $ a week to keep people in there jobs.it wont just affect the 2500 people at holdens.imagine the backlash with whats left of the holden manufacturers in australia.
we should have kept australian cars and manuafacturing australian....
L337
Instead of bringing in a pointless Carbon tax, Why don't they support local business like holden etc
Right Foot Action
I love 'em. but shi7 how much more money do they need?? 3 years ago they got $200 million
Holden gets $200 million bailout
Think about it,
I see that Ford just got $100M+ to stay till 2016, wonder what GMH will need to stay post VF?
Is this it?
Considering Holden is one of gm's best performing Divisions, i highly doubt anything will change.
I guess it's kind of like the government investing money into keeping Australia's unemployment levels lowOriginally Posted by Munz
If both Holden & Ford manufacturing went overseas, the unemployment levels in this country would skyrocket. Actual Holden & Ford employees on their own don't account for a large percentage of Australia's employment, however the effects of Holden and/or Ford going overseas, would cascade throughout the entire automotive industry - eg parts/component suppliers, which would have a massive negative effect on Australia's employment figures.
Think about it,
Agree with you on that, I wonder if GM would ever sell Holden? I'm willing to bet a lot of people would throw in for shares.
Is this it?
Tells it like it is.
I bet many more wouldn't. Auto manufacturing has proven to be a terrible investment for decades now. Even when Holden was making profits 5+ years ago as a ROI they were small. Toyota in Australia have never turned a profit and Fords have been positive one year and a loss the next.
On the broader issue of this thread, unfortunately govco assistance is what drives the car making industries in every single auto making country in the world. There is not one single country with a assembly plant that doesn't have Govco assistance in one form or another. The Australian government provides assistance at the lower end by world standards. The 3 manufacturers in this country and their tier 1 suppliers are the largest single full time employment industry in Australia, not taking into account the 2nd, 3rd tier and other indirect employment that feeds of the industry. I think it's important that government does everything it can to keep the industry in Australia for as long as it can.
Reaper
Make the stupid stop!
Millions were thrown at Mitsubishi a few years back here in SA as they kept threatening to pull out. We kept being told this money was vital to save jobs long term.
So, where is Mitsubishi at today? Factory closed eventually, all the money did was delay the inevitable. I wonder if Holden's will go the same way therefore we could put the money to other causes.
Banned
This is stupid. If car manufacturing isn't sustainable in Australia then we should let it go, and NOT pump hundreds of millions of dollars of tax payers money into it! The products from overseas are (for the most part) better quality, more fuel efficient, cheaper and better looking. If that weren't the case, there wouldn't be a problem.
If people don't want local brands to disappear, then they should stop buying foreign brands - which is hard considering for almost everything you can find much better value for money overseas. That goes for everything. Globalisation is the way of the future - be competitive with your products, or shut up shop!
You are forgetting the amount of extra unemployment caused by closing the Aussie Plant, and the onflow effect, from the plant workers, sales, and so on. I would rather see the Govt plough money into keeping the plant here than paying it out in Dole Money.
There is of course another option...Aussie workers could take less money per week like our chinese counterparts and that would keep GMH sustainable...but I am pretty sure not too many aussie workers are gonna put their hand up for a drastic paycut.
The only way for many Aussie Companies to remain competitive is get the workers to do exactly that..work....add up the countless hours Aussie workers get paid to read their emails, forums, online shopping, talk to friends on company time, and generally abuse every prevelidge under the sun on the bosses dollar and then you will see where our competitive edge has gone.
Then take a peek at some of the overseas manufacturing plants, where the workers cant even take a pee break, do not look sideways at each other and are housed on site in little more than back packer styled dorms, and take home less then $100 per month....not a typo...$100 per month, when we are ready to accept those type of conditions we will be once again competitive, until then, we need to work more, take less, and BUY AUSTRALIAN !!!
Just my 2 cents....
Tells it like it is.
And how do you deal with the 65,000 directly employed making cars in Australia by GM, Ford and Toyota, let alone the 250,000 others employed in the T1 suppliers. Not to mention the other non direct jobs which also would be lost??
Whilst I don't agree with your better quality, more fuel efficient, cheaper and better looking argument either, it's a subject for another thread. This is one area where government involvement protecting and investing in Australian jobs is vital. Looking at the world, history shows that those countries with strong and growing manufacturing bases have thrived whilst the others at best have been cyclical at best. NA manufacturing has been in decline for decades and along with several other systemic problems, USA has a huge job ahead of themselves to get out of their mess. Europe is much the same. Australia have been very lucky the resources boom has to a large extent saved us but now is exactly the time to keep manufacturing here and to attempt to grow it whilst our competitors are in a weakened position.
The estimates are that USA government subsidises it's car industry by approx $250 per car. Korea similar along with Japan. Thailand is a little less. Australia contributes around $25 per unit. This combined with our lower (or non existent for 4wd vehicles) tariffs has overall lowered the price of cars for consumers in Australia in real terms over the last 25 years substantially. Save several thousand dollars value on each and every car sold in Australia and contribute a pittance for local jobs seems a reasonably fair trade off to me.
I'd even suggest a tax of $500 (or whatever the cost of the carbon tax content of a car is) for every imported car produced in a country that doesn't have an equivalent (in dollar terms) carbon tax to what is being levied in Australia and push that into local car and allied manufacturing. Yeah we have a completely daft and stupid tax but lets at least try to make something positive for Australia from it.
Reaper
Banned
Why do I have to deal with them? Why does anyone? There's plenty of work if you're willing to work - even if it's something you don't find ideal. Hell, I spent 6 months digging holes for a fencer when I was out of a job once. There is no excuse (other than disability) for not working if you want to work.
Manufacturing in Australia is quite simply an industry that can't compete with cheap overseas labour.
That's one of the biggest problems in Australia. So many people are overpaid!
Corporate bastards in suits have found a way to legally blackmail governments and taxpayers. Awesome.
I love holden. It's just a shame that the people at the very top are such worthless pathetic oxygen thiefs.
Is GM owned by zionists? It smells like it.
Tells it like it is.
Either way government would have to deal with several hundred thousand people becoming unemployed. You don't think it's one role of government to help with employment where possible.
There is more than cheap labour when considering manufacturing viability here.Manufacturing in Australia is quite simply an industry that can't compete with cheap overseas labour.
Such as?? And what should they be paid??That's one of the biggest problems in Australia. So many people are overpaid!
WTF??? You do know that Holden going back to the original 48/215 in 1948 has been a partnership between GM and various governments of both persuasions ever since?
You clearly have no idea what so ever how auto manufacturing works.I love holden. It's just a shame that the people at the very top are such worthless pathetic oxygen thiefs.
Is GM owned by zionists? It smells like it.
Reaper
Banned
Absolutely not!
One prime example that springs to mind is earning close to $100,000 a year (total package) to be a QANTAS baggage handler. That's a $50,000 a year job AT MOST!!! Unskilled jobs should be paid a WHOLE lot less. Watching robots and using a screwdriver or a spanner, or basically working on a life size lego production line should also earn a lot less than it does.
Tells it like it is.
Then I'm very glad you aren't running the country. Like it or not, govco policy in a range of areas has a huge impact on attracting business to set up any number of industries in Australia or else where in the world. For government to set and implement policy without regard for business and the flow on effect of providing jobs for its citizens is just crazy.
How would you suggest the country lower wages as a country??One prime example that springs to mind is earning close to $100,000 a year (total package) to be a QANTAS baggage handler. That's a $50,000 a year job AT MOST!!! Unskilled jobs should be paid a WHOLE lot less. Watching robots and using a screwdriver or a spanner, or basically working on a life size lego production line should also earn a lot less than it does.
Reaper
Banned
There's a MASSIVE difference between artificially propping up a flailing industry by throwing stupid amounts of tax payer's dollars at it, and government policy as it relates to and impacts business. So stop taking what I said out of context. An industry should NOT exist solely on the reliance of government support.
Errrr... Pay people with no skills in shit kicker jobs LESS!
More like $70 to $80 WITH penalties for weekends ,public holidays ,early starts .
Banned
and massive leave entitlements, *sigh* Which adds up to be worth about $100,000 a year as a total package. I did say TOTAL PACKAGE in my post.
I every person who is involved in car industry lost their jobs this would be the dole payments a week$16250000- so gov is just trying to stop that rather than throw $$$$$$$ around.
What MASSIVE benefits??4 weeks a year?you also might not know alot are casual so no leave entitlements.
Tells it like it is.
My question was:
as quoted in your post with your reply:You don't think it's one role of government to help with employment where possible.
Which part did I take out of context??Absolutely not!
Easy to say - but a different thing entirely to implement. Right now you fall squarely into the category of "armchair expert" with lots of "somebody should" do this that or whatever as a broad brush stroke but nada when it comes to the broader implications or how to achieve the aim. For example how to deal with the hundreds of thousands that find themselves without a job if the auto industry was to shut down. Just saying "get a job doing whatever" is not a planErrrr... Pay people with no skills in shit kicker jobs LESS!
Reaper
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