Is Australia losing its Automotive Industry?

[MMC]

GM's Holden to exit Australia as early as 2016: reports

General Motors Co has decided to pull out of vehicle production in Australia as early as 2016, local media reported on Friday, in what would be a major blow to the struggling industry.

Citing unnamed senior government sources, the Australian Broadcasting Corp said an announcement on the decision to close was supposed to have been made this week but had been put off until early next year.

A GM spokesman in Detroit declined to comment on the reports.

The Australian automotive industry employs more than 50,000 people and supports 200,000 other manufacturing jobs. Any exit by Holden is likely to affect the economies of scale at Toyota Motor Corp <7203.T>.

In May, Ford Motor Co will shut its two Australian auto plants in October 2016, following the exit of Mitsubishi Motors <7211.T> in 2008.

GM's Holden to exit Australia as early as 2016: reports - Yahoo Finance


Ford, GM, Mitsubishi.....seems like a lot of people getting put out of work? High Costs and strong local dollar. Will Australia lose the industry and have close to a couple hundred thousand hit the ranks of unemployed?

Which not to mention......GM and Ford taking the Hit here with it too.

 

[KevinKohler]

I thought Holden was popular over there?

 

[cpgrad08]

Australia has an automotive industry? I learn something new today.

 

[KevinKohler]

Australia has an automotive industry? I learn something new today.

They build Fords and Chevys that are rebranded, and only sold in Australia and Europe.

 

[specklebang]

I drove a Holden 40-some years ago and they were quite primitive for the era. I'd guess they'll just assemble Korean cars instead of trying to make a go of an off-brand like Holden.

 

[MichaelW]

I thought Holden was popular over there?

They are. But most of the models that sell in the masses are either built in Korea or Thailand and shipped over. The only Australian thing about them is the badge. Holden, specifically the Commodore, used to be the best selling car in Australia, mainly because you got more bang for your buck. Building and R&D costs a lot and considering the Commodore isn't even in the top 10 best selling list, it really isn't pulling in the money that it used to.

 

[Lord Tammerlain]

They build Fords and Chevys that are rebranded, and only sold in Australia and Europe.

The Pontiac G8 was based on the Holden Commodore, and was built in Australia, the Camaro is based on that platform and I believe the Chevy SS is built in Australia and sold in America

The Pontiac GTO sold about 6 years ago in the US was a rebadged Holden Monaro

Australia did produce some nice rwd cars generally for the aussie market, GM was the only one to take advantage of that and bring RWD sedans to the US, at least in the 2000's when only Chrysler of the "domestics" had a RWD car based of coarse on the MB 300 series

 

[KevinKohler]

The Pontiac G8 was based on the Holden Commodore, and was built in Australia, the Camaro is based on that platform and I believe the Chevy SS is built in Australia and sold in America

The Pontiac GTO sold about 6 years ago in the US was a rebadged Holden Monaro

Australia did produce some nice rwd cars generally for the aussie market, GM was the only one to take advantage of that and bring RWD sedans to the US, at least in the 2000's when only Chrysler of the "domestics" had a RWD car based of coarse on the MB 300 series

I knew all the LS2 cars were based on the same platform (GTO, G8, Monaro, and...wasn't there one more?), but I didn't know the camaro was...aren't all of those cars solid axles? And I had no idea the SS truck (which I sorta hate) was built in Australia. Maybe based on their Ute, or whatever they call them? Those are LS2 powered, as well.

 

[MMC]

Well with Ford and Mitsu and GM pulling up stakes......that will leave just Toyota on the Center Stage. Wonder how that makes the Aussies feel. Also will this really affect their economy? 250k workers or thereabouts.

 

[MichaelW]

Well with Ford and Mitsu and GM pulling up stakes......that will leave just Toyota on the Center Stage. Wonder how that makes the Aussies feel. Also will this really affect their economy? 250k workers or thereabouts.

It may do. But bear in mind that the recent economic growth in Australia was fueled by mining exports of important minerals.

 

[MMC]

It may do. But bear in mind that the recent economic growth in Australia was fueled by mining exports of important minerals.

Mornin' Michael. :2wave: Thanks as I haven't heard much that their economy was on the ropes or anything. Course you do know how Reporters like to embellish at times. So will the Aussies still be able to get American vehicles?

 

[American]

I knew all the LS2 cars were based on the same platform (GTO, G8, Monaro, and...wasn't there one more?), but I didn't know the camaro was...aren't all of those cars solid axles? And I had no idea the SS truck (which I sorta hate) was built in Australia. Maybe based on their Ute, or whatever they call them? Those are LS2 powered, as well.

Do you mean live axle?

 

[KevinKohler]

Do you mean live axle?

Yeah, same thing. Non independent rear suspension.

 

[Serenity]

I've refrained from posting in this thread until now but unfortunately the Official announcement has now been made this afternoon. Holden will cease Aussie Manufacturing in 2017.

Sixty-five years after it first began producing cars in Australia, Holden has confirmed it will cease local manufacturing in 2017.

Holden chairman and managing director Mike Devereux confirmed in a heated press conference on Tuesday afternoon that the decision to wind down its Victorian and South Australian manufacturing facilities within four years was taken on Monday afternoon, by the General Motors senior leadership team in Detroit.

Very sad day for Australia.

Football, meat pies, kangaroos and Holden Cars. no more.

 

[MMC]

I've refrained from posting in this thread until now but unfortunately the Official announcement has now been made this afternoon. Holden will cease Aussie Manufacturing in 2017.



Very sad day for Australia.

Football, meat pies, kangaroos and Holden Cars. no more.

Mornin' Serenity

.....so how much manufacturing by these guys plays a part with Australia's Economy?

 

[Serenity]

Mornin' Serenity

.....so how much manufacturing by these guys plays a part with Australia's Economy?

The two Manufacturing plants here are in Melbourne which is in Victoria and Adelaide which is in South Australia. It's going to affect approx 3,000 direct Employees and will impact those communities significantly. It's also going to impact the jobs of around 45,000 people who are employed directly and indirectly by vehicle carmakers and suppliers here.

Now that we have Holdens official announcement, it's highly likely that Toyota are going to be forced to follow suit. I imagine the fallout is going to be significant.

 

[MMC]

The two Manufacturing plants here are in Melbourne which is in Victoria and Adelaide which is in South Australia. It's going to affect approx 3,000 direct Employees and will impact those communities significantly. It's also going to impact the jobs of around 45,000 people who are employed directly and indirectly by vehicle carmakers and suppliers here.

Now that we have Holdens official announcement, it's highly likely that Toyota are going to be forced to follow suit. I imagine the fallout is going to be significant.

Won't this leave Toyota there to remain as the major player? I would think with the hit they took all around the world they would try to take advantage of this. Knowing Ford and the others are pulling out. So then it will be like the OP was saying and looking at close to 250k jobs?

Who makes Landrover?

Btw Serenity.....whats the weather like down there now? We got 2 inches of snow so far with whats coming today. Plus we are looking at like 15 degrees, should go up to 20somthing today.

 

[MichaelW]

Mornin' Michael. :2wave: Thanks as I haven't heard much that their economy was on the ropes or anything. Course you do know how Reporters like to embellish at times. So will the Aussies still be able to get American vehicles?

That depends on what the likes of GM and Ford are wanting to sell there under the Holden and Ford Australia brands. GM has already reintroduced Cadillac to the Australian (and NZ markets, don't forget that our tastes are broadly similar in terms of new car sales) although whether they're still selling cars is a different story. However, GM also sources most of it's Holden models from Korea and rebrands them, or produces certain models outside of Australia in places that are close and cheap. Chevrolet did try and sell the Tahoe and Suburban as Holdens but I'd doubt they'd be able to do anything like that these days as petrol is quite expensive.

Ford on the other hand is planning on selling the Mustang brand new from 2016 I believe and they also sold the Taurus and Explorer brand new in Aus and NZ until 2004. With the Falcon going out of production at that time, it's difficult to say what product they'd replace it with as the Fusion is a rebadged Mondeo which is already sold there and the Taurus is far too large. But it's interesting times ahead as Nissan's recently introduced the Altima here also.