Holden Announces Elizabeth Plant Restructure

[Darren]

GM Holden Ltd will reduce its South Australian operations by 600 positions in coming months due to increased plant efficiency.

The efficiency has been driven by Holden’s recent $532 million investment in the Elizabeth plant.

Additionally, in line with Holden’s business plan to phase out of VZ Commodore models in 2007, the Elizabeth plant is transitioning to only VE Commodore production.

VE Commodore has also been designed by Holden engineers to be easier to manufacture than previous Commodore models.

Maximising plant efficiency is a critical factor in Holden’s future business strategy to secure a long term future in Australia and maintain competitiveness as a global automotive manufacturer.

Daily production will be gradually revised from its current level of 620 cars to approximately 520 cars in March, and then back to maximum capacity of 620 cars per day by October 2007.

GM Holden Executive Director, Rod Keane, today said the decision was a difficult message to deliver to Elizabeth employees but was necessary to ensure the plant operated as competitively as possible in coming years.

“By continually improving our operational efficiency we will ensure GM Holden remains viable in Australia and in the global marketplace,” Mr Keane said

“Holden has a strong business strategy to ensure success and security for the future.

“This strategy is increasingly important as Holden moves to a business model which will see our production mix include up to 50% export vehicles.

“We have to make changes for a long-term future but at the same time, it’s very difficult for our employees and their families.”

Employees in each shift were advised of the decision today, and were asked to consider voluntary separation packages. All employee entitlements were defined and protected under the 2004 enterprise bargaining agreement.

Mr Keane said the company would do everything it could to help employees and would seek to work with the Federal and State Governments, unions, suppliers and other major South Australian firms.

Mr Keane said GM Holden operated one of the world’s most flexible manufacturing facilities, and would continue to capitalise on this advantage in securing future business for Holden’s remaining 3,500 employees.

He added GM Holden was one of Australia’s largest private sector investors, having committed more than $1.8 billion to its operations in the past three years alone.

“GM Holden has invested a lot in Adelaide and will continue to do so. Our business plan guarantees we have a long-term future here.” he said.

Source - Holden Media.

[vztrt]

I'll be surprised if it goes back to maximum capacity as the large car market in getting smaller (bout 20% now). Holden are selling about 1500 cars less than they were expecting when the VE was launched and unless they can find some new export markets there will be fewer Holden's coming out of SA.

[1991_Vn2nV]

I'll be surprised if it goes back to maximum capacity as the large car market in getting smaller (bout 20% now). Holden are selling about 1500 cars less than they were expecting when the VE was launched and unless they can find some new export markets there will be fewer Holden's coming out of SA.

Yeah but surely with the new export deal with the Pontiac G8, they will need to maintain the same production they currently using. Thats without the possibility of exporting to any more new markets as well.

[Rombles]

.....Additionally, in line with Holden’s business plan to phase out of VZ Commodore models in 2007, the Elizabeth plant is transitioning to only VE Commodore production.
......

So based on this we should start seeing Utes and Wagons soon, then?

[JD]

So based on this we should start seeing Utes and Wagons soon, then?

i would say so, unless they ditch commodore utes ( leaving rodeo's only ) and ditching wagons altogether ( which is unlikely )

[drewins]

So based on this we should start seeing Utes and Wagons soon, then?

Not till later this year. They're fazing out VZ's now because the are simply not selling.

[vztrt]

Yeah but surely with the new export deal with the Pontiac G8, they will need to maintain the same production they currently using. Thats without the possibility of exporting to any more new markets as well.

They'll see how the Pontiac does over there, remember the monaro tried to go OS and wasn't as successful as expected.
If Holden find new export markets than they increase production, but in terms of Australia there isn't a big enough market anymore.

[1991_Vn2nV]

They mentioned in the paper I think rumours that if the VE is successful overseas and meet the quota, they will be built at the new camaro plant in Ontario Canada...

[drewins]

They have been saying even before the deal was made.

[fourstar82]

Hardly a surprise that they have dropped 600 workers. What makes me angry is that the unions are trying to blame the federal government for this, saying that because they have reduced tarriffs on imported cars its affecting Australian built cars. What a load of crap! Its plain and simple, Australians aren't buying as many large cars these days because of petrol prices, etc... Smaller cars have become more popular as a result!

[vztrt]

Hardly a surprise that they have dropped 600 workers. What makes me angry is that the unions are trying to blame the federal government for this, saying that because they have reduced tarriffs on imported cars its affecting Australian built cars. What a load of crap! Its plain and simple, Australians aren't buying as many large cars these days because of petrol prices, etc... Smaller cars have become more popular as a result!

It's not Australian built cars it's Commodores and Falcons in general, people have a choice between an import car that is more reliable, better build quality, better fuel economy and more features for not much more than a car built in our back yard. Also Australian built cars arnt that highly regarded as they use to be.
The tariffs did do alot to keeps the cost of import cars higher. Every other car producing nation has import tariffs yet were lowering ours and killing the industry.

[JD]

Hardly a surprise that they have dropped 600 workers. What makes me angry is that the unions are trying to blame the federal government for this, saying that because they have reduced tarriffs on imported cars its affecting Australian built cars. What a load of crap! Its plain and simple, Australians aren't buying as many large cars these days because of petrol prices, etc... Smaller cars have become more popular as a result!

i agree and holden small cars arn't the best in comparison to others.

[drewins]

It's hard to blame anyone. The lowering of tarrifs does hurt us. But we need the exports too. There are more and more imports coming in which gives people more choice and hence Holdens sales go down. And if you could buy a small imported car for $15000 drive away why would you buy a $32000+ base commodore? Thats the way some consumers look at it.

[1991_Vn2nV]

Hardly a surprise that they have dropped 600 workers. What makes me angry is that the unions are trying to blame the federal government for this, saying that because they have reduced tarriffs on imported cars its affecting Australian built cars. What a load of crap! Its plain and simple, Australians aren't buying as many large cars these days because of petrol prices, etc... Smaller cars have become more popular as a result!

You cant honestly think that 10% tariffs compared to 50% tariffs in the 80's doesn't have a large effect?

Why should Australia only charge 5% tariffs (as of 2010), compromising our local market, when other countries in the world are charging extremely high tariffs which are compromising our export markets? Why should Australian car manufacturers get the rough end of the stick locally and overseas?

Keep tariffs at 10% Its not an unreasonble figure. Especially by world standards.

[fnlow1]

Utes are due July/ August I believe, wagons a little later IIRC. Edit prototype utes already in testing having trouble with rigidity around the rear windscreens in testing. Don't worry will be sorted come production time .

[robbo10]

So what happens now to the Cross 6 & Cross 8 wagon and utes. Are they still catered for in the VE range in the future. Or have they spent millions developing an all wheel drive vehicle, to just throw it away, like the Mitsubishi Magna. What a waste that will be. Maybe we should just go back to a genuine 4WD Chassis and drop on a body of our own choosing like that fella in Tasmania did with the HQ--WB Holdens and Toyota or Jeep mechanicals. There was a bloke in Lillydale put an old Crown wagon onto a Landcruiser chassis and did a real good job of it too. What do you lot think. Put a VK wagon on a Suzuki Vitara chassis and shoehorn in a 3.6 v6. How would that go?

[vy_storm]

The cross6, 8 and Adventra were a flop sales wise and would be not worth the effort re-tooling for the VE. I doubt we would be seeing them again. Will probably go the same way as the 1-tonner did.

[vztrt]

The cross6, 8 and Adventra were a flop sales wise and would be not worth the effort re-tooling for the VE. I doubt we would be seeing them again. Will probably go the same way as the 1-tonner did.

Pretty much, the money wasted on the AWD system would have been better spend keeping the 1 tonner alive. At least there was a market for that.

[robbo10]

C'mon guys, a vk body on a Suzuki vitara chassis powered by the 3.6 OHC V6 in the current crewman. Thats gotta turn heads in the street. All that sculpted panelling sitting so high in the air. You wouldn't have to drive it up onto the top of the kerb and lay in the gutter to do an oil change. May be just a little stretch of the chassis to make it fit the wheel base of the VK but it wouldn't be much.

[holdenrules]

Also Australian built cars arnt that highly regarded as they use to be.

Huh? If anything, it would be the opposite, our recent cars are highly regarded more than they have ever been ...

Our road and weather conditions can be pretty tough. Add to that the way how we like to drive our cars those cheaper, imported cars will just break in half ...