Expert predicts next GM subsidiary to fall will be Holden

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  1. TriShield

    TriShield Super Moderator® Super Moderator

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    Expert predicts next GM subsidiary to fall will be Holden

    Posted Tue Apr 14 2009 6:34 AM by Kenneth Hall

    The continuing downfall of General Motors in recent months has led to some serious scrambling at the carmaker’s subsidiary brands as each struggles to keep its head above water as the ship goes down. We saw it first with Hummer, which GM decided to offload as far back as the middle of last year, and subsequently we saw the Saab, Saturn and Opel brands start to deteriorate. Now it appears as though GM’s often forgotten subsidiary, Holden, may be next on the chopping block.

    Holden, which operates in Australia but also produces the Pontiac G8 and several variants of that car for international sale, is on the brink of collapse according to Clive Matthew-Wilson, a local industry expert and author of the internationally recognized Dog & Lemon car buying guide.

    GM’s Aussie subsidiary has already halved output at its Adelaide plant from 600 cars per day to just 310 and more reductions, including job cuts, are expected to come.

    Speaking with the Sydney Morning Herald, Wilson predicted that the entire Australian automotive industry, which is supported by companies such as GM, Ford and Toyota, is not likely to recover from the current economic downturn, and that no amount of government interference can prevent the industry’s eventual downfall.

    While GM's plight is no secret in automotive circles, Matthew-Wilson also claims that Ford’s Aussie division is not doing as well as it may appear, citing tumbling sales for the Blue Oval in the first quarter of this year. However, there is little argument against the fact that Ford still finds itself in a better situation than its other Detroit rivals, GM and Chrysler. Nevertheless, Matthew-Wilson is predicting that GM's Holden brand will be the first to slip, followed by Ford and then Toyota.

    Historically, GM and Ford have competed head-to-head in the Australian market, particularly in the large rear-wheel-drive segment but now buyers are turning away from these cars and embracing more efficient, smaller vehicles. Currently, Ford is pondering introducing FWD to its famous Falcon nameplate, but if you talk to Clive Matthew-Wilson the point is moot, and the Australian car industry has reached the point of no return.

    Holden's Response

    STATEMENT IN RESPONSE TO AUTO INDUSTRY SPECULATION

    What gives one person the right to call ‘time’ on an entire industry with more than 60,000 jobs at stake? What data is he basing his views on when happily sounding the death knell for Australian car makers and employees?

    We’ve never had a request from this individual to speak with our executives, to discuss our company business plans or review the business case for our new fuel efficient 4 cylinder small car.

    This is shameless self-promotion at the expense of our industry, our organisation and our employees.

    For the record, Holden has had the best selling car in the country for 13 consecutive years and we’re not going anywhere. We’re in there fighting in a pretty tough global environment and we won’t be discouraged by bystanders.

    Background

    Automotive manufacturing is the largest manufacturing sector in Australia. It supports about 64,000 families and puts $5 billion in wages back into the economy each year. Holden contributed $500 million in wages last year and invested $420 million in research and development.

    Holden recently announced that it will produce a second car line based on General Motors’ global Delta small car platform. GM’s own viability plan highlighted that the introduction of the second car line puts Holden in a long term viable position.

    We believe that the Australian Government’s recently announced $6.2 billion industry support package will be a driver for innovation at Holden and other Australian manufacturers across the next decade.

    Holden and the Australian automotive industry have a lot to be proud of. It’s worth fighting for.

    END OF RELEASE

    http://www.motorauthority.com/expert-predicts-next-gm-subsidiary-to-fall-will-be-holden.html
     
  2. deusexaethera

    deusexaethera OT Supporter

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    Well that sucks. I liked Holden back in the 90's when I first found out about them. Hell, I even toyed with moving to Australia just so I could drive a Commodore. (and to get the hell away from people I didn't like as a kid.)
     
  3. art_VW_shark

    art_VW_shark OT Supporter

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    is Holden not profitable? I for whatever reason think that Holden sells like one in three cars sold in AUS
     
  4. TriShield

    TriShield Super Moderator® Super Moderator

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    The market Holden makes it's money in (fullsize cars) is shrinking fast and the labor costs of manufacturing in Australia is high compared to competitors in Asia and India.

    Holden can't profitably assemble a smaller, cheaper car than a fullsize in Australia and make money at it. Just like the Big Three can't make a profit assembling small, cheaper vehicles in the US (so they build them in Mexico or elsewhere).
     
  5. Run N. Gun

    Run N. Gun Active Member

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    Very unfortunate. :(
     
  6. Bloke

    Bloke Banned

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    a front wheel drive falcon is equally sad.
     
  7. T0nyGTSt

    T0nyGTSt New Member

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    that article is baloney

    no staff are being fired

    the future is the Holden Cruze and the Ford Focus which both will be assembled in Australia
     
  8. deusexaethera

    deusexaethera OT Supporter

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    Then what they need to do is become the world's leading exporter of full-size cars.
     
  9. TriShield

    TriShield Super Moderator® Super Moderator

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    Yeah, that's never going to happen.
     
  10. deusexaethera

    deusexaethera OT Supporter

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    You're a ray of sunshine in a dark, cold world, you know that?

    Let me re-state: then they need to try their damnedest to become the world's leading exporter of full-size cars. Worst case scenario is a bunch of investors lose their money, which as we all know is not a big deal. :mamoru:
     
  11. TriShield

    TriShield Super Moderator® Super Moderator

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    Reality bites.
     
  12. deusexaethera

    deusexaethera OT Supporter

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    When did you switch from kW to HP?
     

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