Welcome to Just Commodores, a site specifically designed for all people who share the same passion as yourself.

New Posts Contact us

Just Commodores Forum Community

It takes just a moment to join our fantastic community

Register

GMH needs funding to stay in OZ

dmacey

Somebody, make me upset
Joined
Sep 13, 2011
Messages
402
Reaction score
0
Points
16
Location
Melbourne
Members Ride
SSV Series II Sedan Manual & a VK in the build
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:

nasty1

New Member
Joined
Feb 16, 2008
Messages
1,739
Reaction score
3
Points
0
Location
adelaide
Members Ride
vy2 clubsport
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....
 

Trayner

Fresh prince of Pakky, Gangsta
Joined
Aug 21, 2008
Messages
1,411
Reaction score
93
Points
48
Location
Pakenham , VIC
Members Ride
Gangsta Hundy
Instead of bringing in a pointless Carbon tax, Why don't they support local business like holden etc
 

dmacey

Somebody, make me upset
Joined
Sep 13, 2011
Messages
402
Reaction score
0
Points
16
Location
Melbourne
Members Ride
SSV Series II Sedan Manual & a VK in the build
I see that Ford just got $100M+ to stay till 2016, wonder what GMH will need to stay post VF?
 

VZ_SS

New Member
Joined
Aug 7, 2009
Messages
183
Reaction score
2
Points
0
Location
Maitland NSW
Members Ride
VZ SS
Considering Holden is one of gm's best performing Divisions, i highly doubt anything will change.
 

Darren_L

Well-Known Member
Joined
May 2, 2009
Messages
1,872
Reaction score
73
Points
48
Location
Toowoomba, Qld
Members Ride
VH SS
I love 'em. but shi7 how much more money do they need?? 3 years ago they got $200 million


Holden gets $200 million bailout

I guess it's kind of like the government investing money into keeping Australia's unemployment levels low
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.
 

dmacey

Somebody, make me upset
Joined
Sep 13, 2011
Messages
402
Reaction score
0
Points
16
Location
Melbourne
Members Ride
SSV Series II Sedan Manual & a VK in the build
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.
 

Reaper

Tells it like it is.
Joined
Aug 15, 2004
Messages
6,493
Reaction score
11,533
Points
113
Location
SE Suburbs, Melbourne
Members Ride
RG Z71 Colorado, 120 Prado , VDJ200, Vantage
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.

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
 

Tatiana

We should have sushi Carol
Staff member
Joined
Nov 30, 2003
Messages
2,518
Reaction score
770
Points
113
Location
Land of the free
Members Ride
Equinox LTZ - runs on cocaine
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.
 
Top