Holden quitting

[crew_man]

The reason that Holden is closing manufacturing is simply because it wasn't profitable enough to continue.
When Ford pulled out it it meant that Holden and Toyota simply couldn't continue as their suppliers costs would increase in order to compensate for lower volumes.

With Fords 'One Ford' policy, they were never going to continue manufacturing a niche car that reduced volumes and profits globally

 

[crew_man]

You obviously know nothing about Unions and how much they have done for workers.

I think that unions are a great thing - when it's a collection of workers banding together for the betterment of their lives.

Unfortunately this usually isn't the case. Unions are run like businesses, with bosses on 6-figure salaries and a compete corporate structure. Like all business' they need to profit and in order to profit they need to show that they are 'working in their members best interests' and keep pushing for more. This generally pushes the industry too far and actually leads to them hurting their members, making them unemployable and ruining the industry

 

[c2105026]

I think that unions are a great thing - when it's a collection of workers banding together for the betterment of their lives.

Unfortunately this usually isn't the case. Unions are run like businesses, with bosses on 6-figure salaries and a compete corporate structure. Like all business' they need to profit and in order to profit they need to show that they are 'working in their members best interests' and keep pushing for more. This generally pushes the industry too far and actually leads to them hurting their members, making them unemployable and ruining the industry

Whilst I do generally support trade unions in an idealised format, I agree it can go far too much the other way.

My union (NSW TF) gave up on large pay rises a while ago. The teaching profession is currently undergoing many changes so the union focuses on making sure the transitions are as smooth as possible, and as few as possible are left in the lurch.

Look at other developed countries with similar populations to us - Canada, Sth Africa, Austria.....do they have their unique brands and models? No. We just got very lucky. Very stiff tariffs helped too. 85%. It meant that most major brands at some point have assembled in Australia. But with the trend towards globalisation, and free trade, could it last? No. Ultimately our $30/hr workers were building a product that the market didn't really want anymore, and the $5/hr workers in Thailand were. When I bought a new car in 2013, it was a Thai built Fiesta, because there were no Australian made cars at that price point. I got rid of my mint condition VX because as my daily car it really was too big, thirsty, and uninvolving to drive.

You have to consider if the average family really needs a large, RWD sedan/wagon when for nearly half the price they can get a Corolla/Mazda3/Golf that will be fine for 95% of all trips.

Greedy unions are sadly one thing, but ultimately Holden signed off on the VE when oil was $20/barrel. By 2008 it was $140 plus! That's one of the things that killed it. Globalisation and an improved Asian auto industry mean there were cars coming out of Korea, Thailand etc that really were quite alright.

Also consider this - in the mid 90s, a new corolla was $22k drive away, and the Commodore was $31k. Now, the Corolla is still $22k, but the commodore is now closer to $40k.

So many reasons......

 

[Eevo]

I'm really disgusted that Holden are to stop making a local vehicle.

you should be blaming GM, not holdens.

 

[Grennan]

You obviously know nothing about Unions and how much they have done for workers.

Cant believe someone took the bait. I wonder if the workers will thank the Unions for pushing their wages so high that they no longer have a job?

you should be blaming GM, not holdens.

Eh, not even just GM.

The pull out of locally made cars is down to a number of points.

Manufacturing in this country is far to expensive. From high AUD to extremely high non skilled worker wages, it was simply not profitable. When you have button pushers on 60-80k with some of the best benefits in the country something has to give. When the unions kept demanding more and more for less and less, it was bound to burst eventually.

The AU Government (rightfully) decided to stop propping up a failing business model. Ford and Holden AU were simply not changing their ways. The Government cannot be expected to keep giving private business hand over fist in cash to support their poor business model. They have failed to take advantage and shift their model towards the Australian market which has seen Toyota emerge. The constant pushing of the Commodore and Falcon over small cars and SUVs has seen them fail. Ford Global has seen this and has introduced their lineup to Australia which will grow. Holden, Im not excited about their small car range, its all Euro/Asian rubbish whereas the Focus and Mondeo are decent small and medium cars.

Domino effect of other manufacturers leaving. Mitsubishi was the first. Ford was the nail in the coffin. You have one pull out and everyone sees that as the trigger. Sure enough, once Ford pulled out so did the rest.

 

[McFly The Slacker]

Well if even Mitsubishi are dumping the Evo thesedays then what did chance did a small volume family car made in the one of the most expensive manufacturing countries in the world ever stand? Aussie wages, Aussie prices are simply too high, when the Holden brand is continuously hemorrhaging money there's zero point on keeping the status quo. Its a shame there will only be one cheap V8 offered in this country soon but there's no money to be made in making cars here.

 

[Eevo]

Eh, not even just GM.

The pull out of locally made cars is down to a number of points..

i more meant that the decision (not the factors leading to the decision) was done by GM, not holden

 

[mpower]

Thanks to union greed and corruption.

I'd say thanks to successive incompetent governments more than anything.

 

[Eevo]

I'd say thanks to successive incompetent governments more than anything.

the govt cant force people to buy a particular brand of car.

 

[Grennan]

Nor can they influence private companies to a) sell a certain product to suit Australia b) manufacture in a certain area and c) implement financial changes to remain viable in said country.

In what way, is this ANY governments fault? Government can only prop up certain industries for so long, via tariffs on trade and hand outs the auto industry was kept afloat artificially in this country. Utlimately, if a business wants to suceed in a market, they are responsible. Short of paying the wages of Holden workers (or lowering our countries standard of living/minimum wage), there wasnt much any Govt could do.