GM give up HOLDEN ?

[mpower]

They are only profitable if they sell in sufficient numbers.

Well actually they could still be profitable if they moved the vehicle to a different market segment.

So you stop selling the crap exec/omega BS and only sell Calais etc, you are in a different segment so volume is lower but margins are higher.

Yes it would work but GM don't tend to operate that way, they rely on volume.

 

[blackve76]

the price to build a cruze and a commodore isn't that different, more $$$ in large car, pity the aus $$$ went to crap the us export would have been able to save holden a few years....

 

[1991_Vn2nV]

Well actually they could still be profitable if they moved the vehicle to a different market segment.

So you stop selling the crap exec/omega BS and only sell Calais etc, you are in a different segment so volume is lower but margins are higher.

Yes it would work but GM don't tend to operate that way, they rely on volume.

Even with higher margins, you will never cover costs building a low volume vehicle like that. Regardless of higher margins, lower volume means increased build costs due to lower economies of scale.

Research and development costs alone to keep up with (and compete) in that segment are far too large for a locally made car. BMW, Mercedes etc. have the luxury of worldwide sales to cover those costs, and they still receive funding from the German government.

Why would another manufacturer want to come here?

It costs 4 times more to build a car here than it does in Asia, and double what it does to build a car in Europe. What manufacturer would CHOOSE to double or quadruple their unit costs?

They also receive a lot less funding per capita than other major automotive industries in Europe and the USA. The Australian government gives $18 (US) per capita in funding, compared to $90 per capita in Germany and $96 in the US.

Considerably less funding per capita, much higher unit costs and extremely low volume sales with little to no export potential due to the AUD in arguably the worlds most competitive market.

 

[str8vy]

If GM do give up the Holden name , it won't be the end of the world , if it gets taken over it might just be it's saving grace .


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It would all depend on what they do with the brand and what models they put out.
You would hope there would be a V8 line up in there, perhaps with engines sourced from the US like they are currently.
You'd also hope they would keep the current work force, and the skilled designers over in Melbourne would be part of the package of any take over.

But I think in reality this is all hopes and dreams from the South Australian Premier Jay Weatheril and wont amount to anything.
At best if anyone was to take over the Elizabeth plant it would be a defence contractor producing land vehicles, and even that would need to be a big International company with big contracts otherwise it wont be worthwhile or sustainable given how little is spent on defence and procurement in Australia.

 

[commodore665]

It would all depend on what they do with the brand and what models they put out.
You would hope there would be a V8 line up in there, perhaps with engines sourced from the US like they are currently.
You'd also hope they would keep the current work force, and the skilled designers over in Melbourne would be part of the package of any take over.

But I think in reality this is all hopes and dreams from the South Australian Premier Jay Weatheril and wont amount to anything.
At best if anyone was to take over the Elizabeth plant it would be a defence contractor producing land vehicles, and even that would need to be a big International company with big contracts otherwise it wont be worthwhile or sustainable given how little is spent on defence and procurement in Australia.

Pretty much my sentiments too


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[XUV]

They also receive a lot less funding per capita than other major automotive industries in Europe and the USA. The Australian government gives $18 (US) per capita in funding, compared to $90 per capita in Germany and $96 in the US.

Considerably less funding per capita, much higher unit costs and extremely low volume sales with little to no export potential due to the AUD in arguably the worlds most competitive market.

that's interesting, the government/unions/News didn't mention that .

and I wonder if GM received any US funding for Holden ?

 

[wod300]

It would all depend on what they do with the brand and what models they put out.
You would hope there would be a V8 line up in there, perhaps with engines sourced from the US like they are currently.

I hope hope so too. I wonder what the ratio is with V8 v V6 commodore purchases. There seems to be a lot of the V8 commodores around.

it wont be worthwhile or sustainable given how little is spent on defence and procurement in Australia.

It would be feasible if the govt stopped buying boats that don't float and subs that don't sink!

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[BlackoutSteve]

a non-GM Holden? No thanks.

..a non-GM Holden? Yes thanks. Maybe you should watch this... General Motors is becoming China Motors - YouTube

Today's GM are not doing anyone any favors except for the Chinese thanks to nothing but cheap labor. I love and worship the GM of previous years, but today, they have sold Australia, the USA and themselves completely out.

I will NEVER buy a Chinese Holden. I hope the Holden brand is dead, gone, and ceases to exist before Chinese made Commodores are exported here, slapping us all in the face with the iconic Lion emblem on the grille. #### you General Motors.
..and I reckon you'll be kissing RWD and 8 cylinders away too.

If there's a take-over, here's hoping...

 

[mpower]

GM is all about volume, I mean look at this piece of junk - difference being we had the large cars making up at least some of the volume over the lower end Daewoo garbage that GM shoveled into the market.

 

[NickVR]

A lot of things would need to fall into place to make this work. The government would to introduce higher tariffs to help the industry. It may only need to be 20 or 30% but something to make it competitive to build here. The tariffs would then be used as funding for the company.That would be all the company gets, no more no less. The more money made from tariffs the more they benefit and if it gets too out of hand eventually a cap to a certain amount and the rest to go into jobs in Australia. All wages at the factory and in management of that factory would be adjusted accordingly. Most would drop significantly others not so much, but basically award wages for line workers and a little more for supervisors and so on.

Then if that all falls into place, a company willing to take it on. Tata is one company that would be good to do so but other than that, a company that makes good quality cars not cheap and nasty. It's all hopes and dreams at the moment and I personally would love to see it happen if the factory stayed here and all or most of the workers jobs were saved. Here's hoping.