HOLDEN'S HEREAFTER

[VS 5.0]

^ to me, it seems if COGS is such that no money is truely made, then the business should fold

I thought you were more learned than that.

A given % margin on a very expensive thing can be of greater numerical value than a much higher % margin on a lower priced thing but still look low as a %.

When you're dealing with goods with values up to $1m p/u, it makes a big difference, i.e. a GP that is profitable after expenses but looks very low when compared to total revenue.

 

[Skylarking]

^ I know revenue != taxable income and % can’t be directly compared but not being an accountant, so some terms are not in my daily vocabulary. Regardlesss, I thought you’d understand what I meant.

Put simply, if something costs X and it’s sold for X (or <X) so that no money is made (or a loss is incurred), the business shouldn’t exist. This should especially be the case if they exist by playing tax games where the government should jail tax agents, accountants and CFO’s and COR’s for tax fraud.

For me, it’s better these less than mediocre businesses are forced to go under so more profitable ventures ensue and a fair tax is paid by all (unless strategic national importance requires they exist in which case reasons and accounting should be freely available above board).

We shouldn’t be rewarding less than mediocrity while allowing the true taxable funds to be cleverly channeled away by multinationals shenanigans. Such is simply a national theft perpetrated by globalisation

We all pay for such shenanigans by high personal tax rates, poor hospitals, lack of infrastructure spend and worst of all an attitude where we blame old pensioners for being old, such and a drain on the budget

Its probably time for a turnover tax but where would all the accountants and tax lawyers work

 

[Forg]

Its probably time for a turnover tax but where would all the accountants and tax lawyers work

I can't see how that can work, some businesses just have massive expenses & you can't tax those expenses or they'd be paying WAY more tax than they'd be making actual profit.
Qantas for example, they can't get the planes from GoGet at the same rate as an I30.

 

[Stroppy]

Of ?????



Never going to happen in a capitalist economy. Govt can't just go stomping over IP rights. Do that and sovereign risk goes through the roof and business investment falls through the floor.

I understand that but a peppercorn payment could be made to keep the things I mentioned. It would be a great way to improve GM's reputation in general and the brand would remain here until such time as our wages make manufacturing profitable again. That will happen given time. Already wages in China are rising exponentially. Many multi-nationals are looking to Vietnam and other SE Asian countries to do their manufacturing. India...maybe but too many problems with religion and slack work ethic...same as Africa...very poor work ethic and problems with basic infrastructure. Trump's push to "bring industry back" to America seems to be working mainly because many companies are sick and tired of the Chinese stealing their IP whilst being forced, by Chinese law, into partnerships with local companies. I notice that Briggs & Stratton have shifted their mower engine manufacturing back to the US mainly because of the IP issues and poor Honda has already been screwed over by the Chinese (look at all the "Chonda" clone engines on cheap Chinese motor mowers).

 

[berlina411]

**** Holden...

Holden wasn't the problem. Holden was the Aussie brand. GM-US was the mothership that steered it wrong. They're the ones you should be p...d off with. I know I am!!

 

[zero_tolerance]

Holden wasn't the problem. Holden was the Aussie brand. GM-US was the mothership that steered it wrong. They're the ones you should be p...d off with. I know I am!!

Yeah spot on. I love Holden and will always cherish the memories of the good times.
But GM can rot in hell as far as I'm concerned.

 

[Ron Burgundy]

Holden wasn't the problem. Holden was the Aussie brand. GM-US was the mothership that steered it wrong. They're the ones you should be p...d off with. I know I am!!

Holden was a problem.
Starting from some really **** cars to appalling treatment of customers.

 

[426Cuda]

GM provided a lot of people with jobs and a living in return for those subsidies and that's how these businesses work globally, manufacturing and governments walking hand in hand.

GM isn't on its own with letting Holden and Australian manufacturing down, the government played a very important role as well.

GM Holden misread the market and it's customers walked away in droves and the government misread GM and without funding, GM saw no sense in being here.

Simplistic explanation I know but it's the easy way to describe what happened.




.

Good summary. I'd also add that Holden was hamstrung, by failed Govt policy and decades of excessive and poor control from its parent. Holden had great ideas and finally (since HQ), with Zeta a great platform to compete internationally. Poor GM decisions, high $AUD & GFC, high Aussie labour costs, operating in a bubble market, too much consumer choice (brands / models / variants) etc etc. Add to that a non global brand (unlike Ford and Toyota) and forced to sell rebadged crap. Eroding brand loyalty. it has been a sustained perfect storm, for the once great Aussie car maker. I'm surprised it lasted to VF2.

 

[426Cuda]

Anything that increases tax and otherwise reduces postive cashflow to offshore investors will make Australia even less attractive as a place to conduct value add business (e.g. MV manufacturing,) than it already is. We need more inward investment, not less. Why shouldn't an o/s owner benefit from Govt policy? E.g R&D tax offsets (aka fed govt grants - a rose by any other name). Whether direct or indirect, govt spend to boost the economy, create jobs, and increase foreign investment is critical to the economic sustainability of our island nation. Without it, we are limited to exporting low value add raw materials and (given our hemorrhaging manufacturung industry), importing most goods, and a large amount of services. Thus an ever increasing current account deficit....
Raping foreign owned companies with higher taxes is not part of the solution. Rather, it's a big part of the problem.

 

[426Cuda]

Holden was a problem.
Starting from some really **** cars to appalling treatment of customers.

Holden was forced to sell crap tp survive. The cars it made here were honest cars, even some stars in their segment. The parent (GM) didn't give a crap. GM had wanted to shut Holden down for years.
Customer service? Yes there are a few exceptions. But those aside, they are all pretty much as bad as each other.