Sad news for Australia

[Sieg]

GM says it will quit building cars in Australia
9:48 AM ET, 12/11/2013 - United Press International
General Motors said Wednesday it would quit manufacturing operations in Australia by the end of 2017, ending 2,900 jobs in what it called a challenging market.

"The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world," said outgoing GM Chairman and Chief Executive Officer Dan Akerson in a statement.

GM said the Australian dollar had more than doubled in strength against the U.S. dollar since 2001, rising from US $0.50 to as high as US $1.10 and jumping from 47 to 79 on the Trade Weighted index.

That makes goods 65 percent more expensive over the past 10 years, GM said.

In addition, with Toyota Motors as the only other automaker producing cars in the country, the burden of maintaining a supply chain of component parts hits GM harder than it otherwise might.

Toyota acknowledged the difficulty of keeping a supply chain going by itself and said the GM decision could push it to drop production in the country as well, the Australia Broadcasting Corporation said.

"This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia," Toyota said in a statement.

Australian Manufacturing Workers Union says it is now "highly likely" Toyota will leave Australia too.

"Toyota have told me they won't be able to survive in Australia because of the lack of volume in the component industry," said national secretary of the Australian Manufacturing Workers Union vehicle division Dave Smith.

"This is a dark day but there will be better days ahead," said Australian Prime Minister Tony Abbott upon his return from South Africa, where he attended a memorial service for former President Nelson Mandela.

South Australia Premier Jay Weatherill said the decision to quit building what is considered the national brand GM Holden, was a "body blow ... not just economically but socially."

"Holden has been an iconic national brand for Australians, a part of our heritage, which meant a great deal to Australians over several generations," said Deputy Prime Minister Warren Truss.

[BMR Sales]

That is Bad News, as Holden has Pioneered a Bunch of Stuff that migrated to the US (Pontiac GTO & G8)

I wish they had brought the Holden Ute/El Camino to the US as a Chevy.

T.C.

[Musclerodz]

Hopefully it is not the end of Holden, just moving manufacturing out of the country like everything else.

[cluxford]

It isn't great for the workers impacted, but was never sustainable, every Holden manufactured in Australia last year sold below the cost to build.

On a bright note that only leave Toyota. Ford announced they will pull out in 2016 earlier this year.

If Toyota goes then we have no local car manufacturing.

Yes this has massive implications for the tens of thousands employed in the sector.

But for those of us hankering for some modern muscle, they might reduce import duties and tariffs and we can start seeing some Camaro's and Corvette's, CTV's etc on our shores

[renegade6]

Very sad indeed. Holden produces some amazing products.

[J-440]

Isn't the Camaro produced in Australia as well? Wonder where the production line is going to move to...Detroit?? HA!! Also, how destructive are the unions down under? If they were like the unions in America, I can see why the doors are closing.
Hey GM, I'm still waiting for my bailout money to be returned to my 401K. Or you can give me a HUGE discount on a brand new Vette. Whaddya say eh dipsh#@s??:D

[beRSerk]

Nah the camaro isnt produced in australia, we cant even buy one here from a dealer, we have to import and pay a premium to get it changed to right hand drive.
What your probably thinking of is that it uses the australian designed 'zeta' platform, so essentially the chassis is the same architecture as our current holden commodore, which is now also your new chev SS.
Every car ive ever owned (until now my 69 camaro) has been a holden or an HSV, so its sad to see them go, HSV especially as they make some pretty bad ass cars, the new HSV GTS is using the LSA.
Im hoping now chevrolet will slowly move in and replace what will be missing in the form of a camaro

[ProTouring442]

Didn't Ford recently announce they were ending production in Australia as well?

Still, this seems to be a normal sort of thing. In the '80s, manufacturing jobs were leaving the US like mad. Now they are coming back. Maybe it's part of a normal cycle?

[BMR Sales]

Ford & GM announced, Toyota's next. I don't see this as a Cycle as it would kill off any Local Vendors

[rallystyle]

as much as I would like a new ute to show up on our shores this is what gm is becoming


http://youtu.be/Lvl5Gan69Wo

[Twoblackmarks...]

as much as I would like a new ute to show up on our shores this is what gm is becoming


http://youtu.be/Lvl5Gan69Wo


I still dream about a Cadillac, but this obviously is not good, but it is all about Money, and will always be, now more than ever before.

I may be wrong, but I feel leaders and owner of Companys had more feelings and morale Attached to their Companys before in time, but now it is all about: Money in vs Money out, how to maximize effectiviness and cut all possible losses no matter how they do it as long their own profit goes up.

And of course, workers make more and more Money, but to be honest, I dont think thats the biggest issue, atleast to a degree, sooner or later this world will get to a major halt, Wonder when. But without poor People there would not be any Rich People either soo....

I am sorry for the Australians that loses their job, I cant imagine how that is, and hope they find a solution and New jobs before they Closes up.

[V8TV]

They could probably produce Holdens in China pretty cheaply...

[Twoblackmarks...]

I remember first time I was in the U.S.A.

We landed in Seattle, rented a Bonneville, that was Nice, I thought atleast.

But maybe the first car I saw in US. Was a Pontiac Swift, a rebadged SUZUKI!! Man, that was a big downer... I will always remember that forever.. It echoes through my head still.. :(

[BMR Sales]

I still dream about a Cadillac, but this obviously is not good, but it is all about Money, and will always be, now more than ever before.

I may be wrong, but I feel leaders and owner of Companys had more feelings and morale Attached to their Companys before in time, but now it is all about: Money in vs Money out, how to maximize effectiviness and cut all possible losses no matter how they do it as long their own profit goes up.

And of course, workers make more and more Money, but to be honest, I dont think thats the biggest issue, atleast to a degree, sooner or later this world will get to a major halt, Wonder when. But without poor People there would not be any Rich People either soo....

I am sorry for the Australians that loses their job, I cant imagine how that is, and hope they find a solution and New jobs before they Closes up.

You're Right about the Money. One of the Reasons that CEO's make so much Money (Too Much IMHO, but none the less) is that it is their Job to Maximize Profit so in turn the Stock Price goes up.

Unfortunately Every Holden Sold lost money for GM and No CEO is going to put up with that for very long if he (or She) wants to keep their job.

Someone said that they could probably make them in China & make money. That Might be true if there was a existing Market for Holden in China already which is there. The Main reason Buick Survived GM's cuts in '80-'09 when Pontaic, Olds & Saturn were jetison'd was because the Chinese LOVE Buick and at the time (still might be) was the #1 Selling car in China.

T.C.

[J-440]

I hear that GM is going to need another bailout from us taxpayers. Rumor? I wouldn't be surprised. I wonder if the union mentality pushed GM to China or are they that greedy to save more money by shipping jobs overseas. Also, has GM paid any taxes over the last several years since they've made heavy contributions to Obama's campaign? Sorry, don't mean to get political but I wouldn't mind seeing this company go under. Plenty of others to take its place.

[BMR Sales]

Why would they need another Bailout? They are doing very well. Just Rumors being spread around.

The Reason many Manufacture's are making stuff in China is because the Chinese Market is one of the largest in the World - remember most of their people were riding bicycles just a few years ago. The cars made for China's Market are not the cars for our Market!

Anyone that would like to see an American Company go out of business is a Fool!

T.C.

[J-440]

Dude, anytime a business robs the taxpayer because they can't run a company right needs to go under. Signing ridiculous union contracts that promise unrealistic benefits, also is a bad move. Also, when the unions screw themselves and send their own jobs overseas well that's their fault. Why do they need my 401K money? I realize that other huge companies (Berkshire Hathaway comes to mind) also got bailouts to the tune of 45 billion, something is very wrong. How bout I take up a collection from everyone on this board and ya'll can pay off my house and cars?

[BMR Sales]

J-440, Not going to turn this into a Debate, but you do realize that we have been enduring the Worst Financial Deal since the Great Depression, right?

GM & Mopar got Loans from the Government (some came in trade for Company Stock).

I agree Companies need to be run responsibly. But would you have liked GM & Chrysler (and Bank of America etc) to gone Totally under leaving even more people out of a Job with Zero prospect of getting another one. If so, there would be enough room for the Soup Lines & a Civil War would have happened.

The Fact that the USA runs at a Deficit (meaning the Government loses Money every day), would you have the Government Shut Down & hand the Keys to the Chinese?

The Fact is, GM did not & has not Asked the Government for another Bail-Out..

Also Unions back in the Day were needed as Workers were mis-treated & underpaid. They kept asking for more until Pensions etc could not be maintained. That is what has happened to many Cities that have declared Bankruptcy - they are trying to get out from under Paying more to Retired Workers than people currently working.

I don't know the answer, but bitching about it & jokingly asking others to pay your Mortgage & cars isn't going to fix things. Or Maybe you are saying, that like GM, you owe more than you are worth! I don't think you want us to put you in a Work Camp to even things out!

[J-440]

Oh I know the whole history of unions and government. Unions did have their place at one point. Now they are a joke. As far as living within your means, it's not hard to do. I can't afford it, I save then buy it later. Still I don't see why my money that I saved and worked hard for just instantly vanishes and lo and behold, is given to a multi billion dollar corporation. Sorry man, they gotta go.

[eliterides]

They could probably produce Holdens in China pretty cheaply...

Hey Kevin ,It's only a matter of time before China is building cars for the world.
The Australian government has handed over huge amounts of money to both Ford and Holden over the last ten years , tax payer $$ that could of been used more wisely .:hairpullout: