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Holden Factory

Forg

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Apparently a few things he's bought have gone all Saab, as well as the ones that have worked out ... is Spyker still in existence?

However the one thing he's got going for him, in terms of keeping the place running, is that he only wants to make money out of it. He doesn't want to make the maximum profit across the entire world as owned by GM, as selling a premium RWD car in Europe isn't going to cannibalise sales on another premium car he sells in Europe; 'cos he doesn't have other car-sales that would be cannibalised.

I reckon it's a pipe-dream; but it'll interesting to see how it goes.
I'd almost bet the main stumbling-point will be a government that will refuse any subsidisation due to only considering the amount subsidised & ignoring all financial gain (taxes, GST, reduced welfare etc) that would come from a continuation of manufacturing. 'cos it's easier to tax someone once-off on irreplaceable stuff they pull outta the ground & sell overseas.
 

Nitro_X

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But I agree, of all options on the table I would love to see this guy take over and create a model mix based on the Zeta, built locally and exported globally. Like Noeleter said, If anyone could make it happen I think he could.

He seems to have the knowledge, expertise and passion.
I think it would be good for Australian manufacturing but as long as he doesn't want to tap into tax payer funding.
I'm all for government policy and moral support, but not government financial funding of the project.
 

crew_man

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He seems to have the knowledge, expertise and passion.
I think it would be good for Australian manufacturing but as long as he doesn't want to tap into tax payer funding.
I'm all for government policy and moral support, but not government financial funding of the project.

But what if the funding was the only thing that made it a viable option over manufacturing elsewhere?
And what if for every $1 that was invested by the government, there was a contribution of $3 by the company (that otherwise wouldn't be invested in Australia)?
 

Forg

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But what if the funding was the only thing that made it a viable option over manufacturing elsewhere?
You mean like every other country that manufactures cars?

And what if for every $1 that was invested by the government, there was a contribution of $3 by the company (that otherwise wouldn't be invested in Australia)?
You mean like currently with Holden, Ford & Toyota?
 

crew_man

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You mean like every other country that manufactures cars?


You mean like currently with Holden, Ford & Toyota?

exactly. .
 

Skydrol

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I think part of the whole thing is the world/nations wealth distribution. Is sucking up dry the middle class; the ones that are buying the products. Is a matter of time to reach a point the few will be filthy rich and the majority poor as heck... and then what?

In the states people are holding to their vehicle longer. 40 or even 50 years ago, was a common practice to trade vehicles every 3 years or even less. Living cost raises and wages are not keeping up. Without noticing, people spend less because thet have to make it with what they have. So is obvious to seek out value; best price/quality wins.

Is all a domino effect if you follow the money rabbit holes.

I try to stick on the Made in USA things but is hard when you get overpriced crap and/or the only goods available comes from overseas.

People start begging for Gov intervention/aids/subsidies and they take on your behalf a loan; so the viscious cycle continues... in the states we are lucky, we are at the top of the pyramid with one of the best Ponzi Scheme ever. Just a matter of time to catch up with us.
 

Forg

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exactly. .
*tag*

In the states people are holding to their vehicle longer. 40 or even 50 years ago, was a common practice to trade vehicles every 3 years or even less. Living cost raises and wages are not keeping up. Without noticing, people spend less because thet have to make it with what they have. So is obvious to seek out value; best price/quality wins.
Ignoring those unwarranted attacks on Fonzie, it's a little different here I think.
When fringe benefit tax was introduced with deductions for lease cars, that did increase the activity around company cars; and company cars are turned around regularly. But that wasn't until the late 70's to early 80's. I don't think we ever had such a big consumer base, and while I know some people did, most people didn't change cars that often (if they had one at all - a lot of my grandparent's generation were only just getting their first car in the 70's 'cos they couldn't afford one before that).
Don't get me wrong, we're heading in the same way, but the highs aren't as high & the lows aren't as low.

People start begging for Gov intervention/aids/subsidies and they take on your behalf a loan; so the viscious cycle continues
All car manufacturing in the first world needs gumbyment assistance to survive; but the thing is, the gumybment does it NOT (only) because it makes their mates on corporate boards happy & the Christmas hamper from those boards is REALLY big, but also because of how much is returned to the economy that gumbyment is trying to look like it's running.
Economic rationalism is a very nice theory but money can't be everything.
 

dgp

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FWIW, I used to work at a tyre shop, a stones throw away from the factory....When Holden went to the 1 week on, one week off scenario about 6 or so years ago, I noticed a down turn in trade, along with other businesses in the vacinity....Having them close is going to hurt that area for a while

What's that you say? Holden workers work 7 days on then 7 days off??
 

Brettly-2008

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there's so many factors... but the main ones:

Manufacturing costs. It wasn't just "fat cats in high paying management jobs". The production line workers were paid nearly 6 figure salaries! Not to mention their workplace conditions.

Holden stupidly not building cars that people wanted to buy! This is a critical factor. The market shifted. The Korean's and Japanese (primarily) had the products the Australian market wanted. Holden did not. And they didn't change with the market. The re-badged imports they have to compete with demand simply aren't as good. Over-priced and lack quality and refinement.

Relying on govt. subsidies. In the economic climate of the last 10 years, the billions of dollars of govt. subsidies was never going to be maintained.

Basically, the writing was on the wall for a very VERY long time. Holden, both management and workers (along with their union), had more than enough time to adapt and change. Had they done that, things might have been different.

Yeah, not exactly mate.

Wages were never really the issue. Many of the highest-paid Holden employees will continue to work for Holden in design and engineering. Wages were a drop in the ocean.

Yes the market shifted but you cant seriously believe that one day Australians woke up wanting Korean cars? They were cheap and cheerful, that's why Australians bought them. The Holden badge became unpopular, like most-things Australian-made. Call it cultural cringe or whatever, because even the imported Holdens, many of which were quality products (way better quality than Korean and Japanese cars) from Europe couldn't really compete.

Nor did Holden ‘rely’ on Government subsidies like you say. The company rightfully expected some subsidy for the decreasing tariff protection the government offered, which allowed 40+ new brands to enter the small Australian market in less than a decade. Virtually every car manufacturer in the world enjoys government subsidies, including the big Euro brands. Holden could rightfully expect some.

Nope, the big one is buyer preference in an increasingly global market. Commodore and Falcon became unpopular alongside a toybox of imported models, most of which were inferior to locally-made cars. But they were a lot cheaper and not definitely Australian, which made the average Joe look like an educated, worldy consumer of brands.
 
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