GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Making

**BBDOS CV8** · 11-08-2007, 07:10 PM

Car Makers Warn Of Looming Job Losses

AAP
9 November 2007
www.drive.com.au

Two or three of the nation's top four car makers could struggle to maintain Australian operations due to financial pressures, risking at least 7,000 jobs in Melbourne and Adelaide.

A News Ltd paper has reported GM Holden, Toyota, Mitsubishi and Ford told the government their head offices in Tokyo and Detroit are reluctant to commit more investment to Australia.

Car manufacturers are under intense international pressure and competition and the strong Australian dollar is also affecting exporters.

The car companies wrote to the government demanding a "serious review" of the $3 billion car assistance plan, the freezing of tariff cuts and "real assistance" including a rebate to develop hybrid green cars, the newspaper reports.

The exit of Mitsubishi in Adelaide, Ford in Geelong and Broadmeadows in Melbourne could happen as soon as next year the letter states.

Click here to continue article

We'd Consider Car Industry Requests: PM

AAP
9 November 2007
www.drive.com.au

A coalition government would look at further requests for assistance from the Australian car industry, Prime Minister John Howard says.

But he admits the government already has provided much in the way of help to the sector since it came to office.

"We have been very ready to help the car industry," Mr Howard told Southern Cross Broadcasting.

"But as a matter of sensibly handling this, we would look at requests from the car industry but we have to pay regard to the level of assistance we've already provided to the car industry.

"It is very, very high."

Mr Howard acknowledged the industry "already gets a great deal of assistance".

Click here to continue article

Car Makers Fearful Of Labor, Says Abbott

AAP
9 November 2007
www.drive.com.au

Australia's car manufacturing industry would be at risk under a Labor government with foreign investors worried productivity would slide, the federal government says.

Health Minister Tony Abbott, who previously held the industrial relations portfolio, said Japanese car companies were concerned a Labor government's industrial relations regime would damage productivity.

Deputy Opposition Leader Julia Gillard dismissed his comments as "complete nonsense".

Holden GM, Toyota, Mitsubishi and Ford told the federal government their head offices in Tokyo and Detroit were reluctant to commit more investment to Australia, The Australian newspaper reported on Friday.

"In essence, the question the industry is raising is why would Toyota, Ford or General Motors want to invest millions in upgrading an Australian operation when they are facing higher labour costs, greater union militancy and the threat of more strike action?" the companies reportedly said.

Click here to continue article

Labor To Review Car Industry Assistance

AAP
9 November 2007
www.drive.com.au

A Labor government would respond to problems in the car industry after conducting a review of industry assistance measures next year, Opposition Leader Kevin Rudd said.

The car industry has reportedly warned the government that the viability of "two, or even three" of the nation's manufacturers is in doubt, threatening the long-term jobs of at least 7000 workers in Melbourne and Adelaide.

Toyota, Ford, Mitsubishi and GM Holden warned the government last month that head offices in Tokyo and Detroit were under financial pressures and reluctant to commit more investment to Australia, the report in The Australian said.

Mr Rudd said Labor's position on proposed assistance to the industry was quite clear.

He said a Labor government would bring forward the review of all car industry assistance measures to be conducted early next year.

"Subject to that review we would announce our policy response at that time," he said.

Click here to continue article

Motor Industry Refutes Media Claims

Federal Chamber of Automotive Industries
9 November 2007
www.fcai.com.au

The peak industry body of the Australian automotive industry, the Federal Chamber of Automotive Industries, has refuted claims published today in The Australian newspaper.

The article in The Australian claimed that the Australian motor industry has warned the Government that the viability of 'two or even three' of the nation’ s car makers is in doubt.

The article also claimed that Toyota, Ford, Mitsubishi and GM Holden last month warned the Government that future investment in the industry was in doubt and that they had recently written to the Government on this issue.

These claims and other claims made in the article about the industry’ s representations to Government are wrong, the chief executive of the FCAI Andrew McKellar said today.

"No such letter exists, nor has there been any industry discussion on industrial relations matters as suggested in The Australian's story," he said.

Mr McKellar said the extent of the competitive challenge facing the industry was well understood by each vehicle manufacturer and by their employees.

"Vehicle manufacturers have built a constructive relationship with their employees and it is essential that this remains the case," he said.

"Australian vehicle manufacturers agree that it is appropriate that a broad ranging review of automotive industry policy arrangements should be undertaken as a matter of priority.

"Both the Government and the Opposition have already committed to undertake such a review early in 2008.

"The industry has welcomed these commitments and looks forward to the opportunity to present its views on the future direction of policy arrangements as part of the forthcoming review process."

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roberto57 · 11-08-2007, 07:18 PM

I can see Mitsubishi leaving and maybe Ford, but GM and Toyota will not be leaving Australia any time soon.

jbernie · 11-08-2007, 08:23 PM

Holden & Ford in Australia have serious issues outside of their control, ie head office is hurting bad, not too sure on how Mitsubishi is going at the moment, Toyota on the other should not be crying poor to any government for any reason.

However, the Fed. Govet, regardless of which party wins office in about 10 days certainly should take a good look at what Australia offers when it comes to the Automotive industry. Holden did a great job of producing the new GRWD platform for use in many markets.

I would expect the Commodore and variants to stay in Australia for the current generation but the next time around... Once GM gets the RWD plants going here in the USA then it is much easier for them to provide Australia with a relatively small volume of vehicles it needs. 5000 or so Commodores a month, plus a few hundred coupes and maybe 1500-2000 utes. It isnt much compared to what would be built for the US market.

demonv8 · 11-08-2007, 09:01 PM

I think the car companies are just testing the water, probably want to milk more money out of the government. Can't see Holden or Toyo going away anytime soon, but Ford maybe, and Mitsu is all but gone.

**JoeT** · 11-08-2007, 09:43 PM

Motor Industry Refutes Media Claims

Federal Chamber of Automotive Industries
9 November 2007
www.fcai.com.au

The peak industry body of the Australian automotive industry, the Federal Chamber of Automotive Industries, has refuted claims published today in The Australian newspaper.

The article in The Australian claimed that the Australian motor industry has warned the Government that the viability of 'two or even three' of the nation’ s car makers is in doubt .

The article also claimed that Toyota, Ford, Mitsubishi and GM Holden last month warned the Government that future investment in the industry was in doubt and that they had recently written to the Government on this issue.

These claims and other claims made in the article about the industry’ s representations to Government are wrong, the chief executive of the FCAI Andrew McKellar said today.

"No such letter exists, nor has there been any industry discussion on industrial relations matters as suggested in The Australian's story," he said.

Mr McKellar said the extent of the competitive challenge facing the industry was well understood by each vehicle manufacturer and by their employees.

"Vehicle manufacturers have built a constructive relationship with their employees and it is essential that this remains the case," he said.

"Australian vehicle manufacturers agree that it is appropriate that a broad ranging review of automotive industry policy arrangements should be undertaken as a matter of priority.

"Both the Government and the Opposition have already committed to undertake such a review early in 2008.

"The industry has welcomed these commitments and looks forward to the opportunity to present its views on the future direction of policy arrangements as part of the forthcoming review process."

bcjohnso99 · 11-08-2007, 10:25 PM

Quite rich to see a Japanese manufacturer complaining about currency issues...

A global currency would go a long way to enabling better long term planning for global companies.

Porkfriedrice · 11-08-2007, 10:49 PM

Quote:

Originally Posted by bcjohnso99

Quite rich to see a Japanese manufacturer complaining about currency issues...

A global currency would go a long way to enabling better long term planning for global companies.

a global currency also means one step closer to globalization, which is actually feared by many here

63GrandSport001 · 11-08-2007, 11:10 PM

With Globalization you risk taking away the identity of each region and what makes them great in favor of large companies.

Also people of different races have serious issues getting along with one another as is.

Like with the Euro Fighter 2000 (now known as the Typhoon) France felt that its needs of a carrier based fighter was being ignored so it made the Refale C on its own.

Nations on the side of exchange rates that they want to be on will not want a global currency. Do you think that Toyota wants to do away with the huge profit making exchange rate it has with the US? and risk going from a profitable company to a loss company over night? Right now vehicles and all products made in modernized European nations are hurting in America due to the weak dollar making them too costly.

Regardless of weather this is real or made up none of the companies is going to want to leave and give up its marketshare to the other companies. Toyota is the sales leading and if Toyota left or stopped investing it would be giving that away to the companies that continue to invest. This would give a bigger reasons for other companies to continue to invest in that market.

Right now GM North America is in a interesting position where its actually would be very profitable to start exporting vehicles to Australia and Europe. Part of the problem with this is the fact that we have very little thats produced here in the states that would do good in the European market. maybe the new Malibu can go to Europe if GM wants to globalize that brand, then the new Cobalt if its up to par.

All in all I really only see one company with the possibility of leaving Australia and that is Mitsubishi.

ColinOpseth · 11-09-2007, 12:11 AM

They're just blowing smoke to see who will blink first.

HoeyHimself · 11-09-2007, 12:15 AM

We took a greater hit in the states with all the lay offs...Bring some opperations back home. Throw us a bone.

redimpss5 · 11-09-2007, 01:33 AM

WOW, some of the best cars are from "over there" and I would love to see them come over here, but I also read today that more jobs are being added there also, but it may not be car related.

GM-Joe · 11-09-2007, 04:52 PM

Just because they build and even design a car in Australia, does it mean they have to export it all over the world. Holden has some nice stuff that should be assembled in N.A. for N.A. not floated across the world like the G8 will be.

aldw · 11-09-2007, 05:46 PM

The automakers that can't globalize their product portfolio will end up in a world of hurt.

kgratton · 11-09-2007, 07:56 PM

Quote:

Originally Posted by GM-Joe

Just because they build and even design a car in Australia, does it mean they have to export it all over the world.

It does if they want to continue designing and building cars in Australia...the Australian market is too small to support a local manufacturing industry without exporting.

This actually opens a can of worms. If not for a Holden in Australia, or an Opel in Germany, would GM have the diversity of design that comes with having global outposts that cater to different cultural tastes?

No export business for Holden in Australia means that the G8, if ever developed would have possibly been nothing more than an elongated Malibu...

Quote:

Originally Posted by GM-Joe

Holden has some nice stuff that should be assembled in N.A. for N.A. not floated across the world like the G8 will be.

It's not ideal to ship cars half-way around the world, but since that particular car is already being built in Australia, it's a lot cheaper for GM globally to import it from Australia where the design and tooling is already amortised, than go to the expense of setting up production in America.

It's only wishful thinking at the moment that the G8 will be a huge sales success. If it's not, no great cost to GM in NA...

chinamonty · 11-10-2007, 12:06 AM

This cycle just keeps going. The car companies cry poor (which they probably are now) and the Government provides R&D money to prop up local manufacturing.
I guess the only alternative is to get in with Indian or Chinese groups that do not have the design/engineering groups of world standard yet and sell the expertise to them and let them build the cars. Australia can put the the price of steel up as well. I would not like to see this but it is just one future scenario.

11-08-2007, 07:10 PM	#1 (permalink)
BBDOS CV8 GMI Australia Correspondent Join Date: May 2005 Location: Melbourne (no, not that one!) Drives: Monaro Barbados 6M Posts: 2,262	GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Making Car Makers Warn Of Looming Job Losses AAP 9 November 2007 www.drive.com.au Two or three of the nation's top four car makers could struggle to maintain Australian operations due to financial pressures, risking at least 7,000 jobs in Melbourne and Adelaide. A News Ltd paper has reported GM Holden, Toyota, Mitsubishi and Ford told the government their head offices in Tokyo and Detroit are reluctant to commit more investment to Australia. Car manufacturers are under intense international pressure and competition and the strong Australian dollar is also affecting exporters. The car companies wrote to the government demanding a "serious review" of the $3 billion car assistance plan, the freezing of tariff cuts and "real assistance" including a rebate to develop hybrid green cars, the newspaper reports. The exit of Mitsubishi in Adelaide, Ford in Geelong and Broadmeadows in Melbourne could happen as soon as next year the letter states. Click here to continue article We'd Consider Car Industry Requests: PM AAP 9 November 2007 www.drive.com.au A coalition government would look at further requests for assistance from the Australian car industry, Prime Minister John Howard says. But he admits the government already has provided much in the way of help to the sector since it came to office. "We have been very ready to help the car industry," Mr Howard told Southern Cross Broadcasting. "But as a matter of sensibly handling this, we would look at requests from the car industry but we have to pay regard to the level of assistance we've already provided to the car industry. "It is very, very high." Mr Howard acknowledged the industry "already gets a great deal of assistance". Click here to continue article Car Makers Fearful Of Labor, Says Abbott AAP 9 November 2007 www.drive.com.au Australia's car manufacturing industry would be at risk under a Labor government with foreign investors worried productivity would slide, the federal government says. Health Minister Tony Abbott, who previously held the industrial relations portfolio, said Japanese car companies were concerned a Labor government's industrial relations regime would damage productivity. Deputy Opposition Leader Julia Gillard dismissed his comments as "complete nonsense". Holden GM, Toyota, Mitsubishi and Ford told the federal government their head offices in Tokyo and Detroit were reluctant to commit more investment to Australia, The Australian newspaper reported on Friday. "In essence, the question the industry is raising is why would Toyota, Ford or General Motors want to invest millions in upgrading an Australian operation when they are facing higher labour costs, greater union militancy and the threat of more strike action?" the companies reportedly said. Click here to continue article Labor To Review Car Industry Assistance AAP 9 November 2007 www.drive.com.au A Labor government would respond to problems in the car industry after conducting a review of industry assistance measures next year, Opposition Leader Kevin Rudd said. The car industry has reportedly warned the government that the viability of "two, or even three" of the nation's manufacturers is in doubt, threatening the long-term jobs of at least 7000 workers in Melbourne and Adelaide. Toyota, Ford, Mitsubishi and GM Holden warned the government last month that head offices in Tokyo and Detroit were under financial pressures and reluctant to commit more investment to Australia, the report in The Australian said. Mr Rudd said Labor's position on proposed assistance to the industry was quite clear. He said a Labor government would bring forward the review of all car industry assistance measures to be conducted early next year. "Subject to that review we would announce our policy response at that time," he said. Click here to continue article Motor Industry Refutes Media Claims Federal Chamber of Automotive Industries 9 November 2007 www.fcai.com.au The peak industry body of the Australian automotive industry, the Federal Chamber of Automotive Industries, has refuted claims published today in The Australian newspaper. The article in The Australian claimed that the Australian motor industry has warned the Government that the viability of 'two or even three' of the nation’ s car makers is in doubt. The article also claimed that Toyota, Ford, Mitsubishi and GM Holden last month warned the Government that future investment in the industry was in doubt and that they had recently written to the Government on this issue. These claims and other claims made in the article about the industry’ s representations to Government are wrong, the chief executive of the FCAI Andrew McKellar said today. "No such letter exists, nor has there been any industry discussion on industrial relations matters as suggested in The Australian's story," he said. Mr McKellar said the extent of the competitive challenge facing the industry was well understood by each vehicle manufacturer and by their employees. "Vehicle manufacturers have built a constructive relationship with their employees and it is essential that this remains the case," he said. "Australian vehicle manufacturers agree that it is appropriate that a broad ranging review of automotive industry policy arrangements should be undertaken as a matter of priority. "Both the Government and the Opposition have already committed to undertake such a review early in 2008. "The industry has welcomed these commitments and looks forward to the opportunity to present its views on the future direction of policy arrangements as part of the forthcoming review process." Dollar & Duties Key To Toyota's Future Down Under The Future Of The Ford Falcon & Mitsubishi 380 - It's Up To You Australia! Car Makers Ask For Higher Tariffs To Save Local Industry - Labor Backs Tariff Cuts Australian Car Industries Uncertain Future __________________ Barbados Series III CV8 'VT Coupe' 245kW LS1 T56 six-speed manual GTO PBR 320mm brakes/DBA 4000 vented discs Last edited by JoeT : 11-09-2007 at 06:53 PM.

11-08-2007, 07:18 PM	#2 (permalink)
roberto57 2.4 Liter SIDI ECOTEC Join Date: Jan 2005 Location: Atlanta area & Philadelphia area Drives: 99 Alero GLS Posts: 432	Re: Loss of two Australian Carmakers Imminent? I can see Mitsubishi leaving and maybe Ford, but GM and Toyota will not be leaving Australia any time soon.

11-08-2007, 08:23 PM	#3 (permalink)
jbernie 6.0 Liter L76 V8 Join Date: Oct 2004 Location: Colorado, USA Drives: 2006 Saab 9-3 Aero Posts: 2,163	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin Holden & Ford in Australia have serious issues outside of their control, ie head office is hurting bad, not too sure on how Mitsubishi is going at the moment, Toyota on the other should not be crying poor to any government for any reason. However, the Fed. Govet, regardless of which party wins office in about 10 days certainly should take a good look at what Australia offers when it comes to the Automotive industry. Holden did a great job of producing the new GRWD platform for use in many markets. I would expect the Commodore and variants to stay in Australia for the current generation but the next time around... Once GM gets the RWD plants going here in the USA then it is much easier for them to provide Australia with a relatively small volume of vehicles it needs. 5000 or so Commodores a month, plus a few hundred coupes and maybe 1500-2000 utes. It isnt much compared to what would be built for the US market. __________________ Talk is cheap, sometimes it is on sale!

11-08-2007, 09:01 PM	#4 (permalink)
demonv8 2.4 Liter SIDI ECOTEC Join Date: Feb 2005 Location: Down Under Drives: LS1 SS Commodore Posts: 483	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin I think the car companies are just testing the water, probably want to milk more money out of the government. Can't see Holden or Toyo going away anytime soon, but Ford maybe, and Mitsu is all but gone. __________________ 2002 VX SS Commodore 5.7Ltr. Tuned to 400bhp!

11-08-2007, 09:43 PM	#5 (permalink)
JoeT GMI News Editor Join Date: Nov 2004 Location: Wollongong, Australia Drives: 2003 Holden Monaro CV8 Posts: 5,813	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin Motor Industry Refutes Media Claims Federal Chamber of Automotive Industries 9 November 2007 www.fcai.com.au The peak industry body of the Australian automotive industry, the Federal Chamber of Automotive Industries, has refuted claims published today in The Australian newspaper. The article in The Australian claimed that the Australian motor industry has warned the Government that the viability of 'two or even three' of the nation’ s car makers is in doubt . The article also claimed that Toyota, Ford, Mitsubishi and GM Holden last month warned the Government that future investment in the industry was in doubt and that they had recently written to the Government on this issue. These claims and other claims made in the article about the industry’ s representations to Government are wrong, the chief executive of the FCAI Andrew McKellar said today. "No such letter exists, nor has there been any industry discussion on industrial relations matters as suggested in The Australian's story," he said. Mr McKellar said the extent of the competitive challenge facing the industry was well understood by each vehicle manufacturer and by their employees. "Vehicle manufacturers have built a constructive relationship with their employees and it is essential that this remains the case," he said. "Australian vehicle manufacturers agree that it is appropriate that a broad ranging review of automotive industry policy arrangements should be undertaken as a matter of priority. "Both the Government and the Opposition have already committed to undertake such a review early in 2008. "The industry has welcomed these commitments and looks forward to the opportunity to present its views on the future direction of policy arrangements as part of the forthcoming review process."

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11-08-2007, 10:25 PM	#6 (permalink)
bcjohnso99 2.4 Liter SIDI ECOTEC Join Date: Oct 2005 Location: Ottawa, Ontario, Canada Drives: '03 Pilot, '03 Vibe Posts: 424	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin Quite rich to see a Japanese manufacturer complaining about currency issues... A global currency would go a long way to enabling better long term planning for global companies.

11-08-2007, 11:10 PM	#8 (permalink)
63GrandSport001 4.4 Liter Supercharged Northstar Join Date: Jun 2005 Posts: 2,786	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin With Globalization you risk taking away the identity of each region and what makes them great in favor of large companies. Also people of different races have serious issues getting along with one another as is. Like with the Euro Fighter 2000 (now known as the Typhoon) France felt that its needs of a carrier based fighter was being ignored so it made the Refale C on its own. Nations on the side of exchange rates that they want to be on will not want a global currency. Do you think that Toyota wants to do away with the huge profit making exchange rate it has with the US? and risk going from a profitable company to a loss company over night? Right now vehicles and all products made in modernized European nations are hurting in America due to the weak dollar making them too costly. Regardless of weather this is real or made up none of the companies is going to want to leave and give up its marketshare to the other companies. Toyota is the sales leading and if Toyota left or stopped investing it would be giving that away to the companies that continue to invest. This would give a bigger reasons for other companies to continue to invest in that market. Right now GM North America is in a interesting position where its actually would be very profitable to start exporting vehicles to Australia and Europe. Part of the problem with this is the fact that we have very little thats produced here in the states that would do good in the European market. maybe the new Malibu can go to Europe if GM wants to globalize that brand, then the new Cobalt if its up to par. All in all I really only see one company with the possibility of leaving Australia and that is Mitsubishi.

11-09-2007, 12:15 AM	#10 (permalink)
HoeyHimself 7.0 Liter LS7 V8 Join Date: Jan 2006 Location: Ann Arbor, MI Drives: 2010 VW GTI Posts: 4,850	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin We took a greater hit in the states with all the lay offs...Bring some opperations back home. Throw us a bone. __________________

11-09-2007, 01:33 AM	#11 (permalink)
redimpss5 4.6 Liter Northstar V8 Join Date: Jan 2003 Posts: 1,648	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin WOW, some of the best cars are from "over there" and I would love to see them come over here, but I also read today that more jobs are being added there also, but it may not be car related.

11-09-2007, 04:52 PM	#12 (permalink)
GM-Joe 4.6 Liter Northstar V8 Join Date: Jul 2006 Location: Columbus, Ohio Drives: 2007 Pontiac Grand Prix 1997 Saab 900 2.0 Turbo Posts: 1,672	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin Just because they build and even design a car in Australia, does it mean they have to export it all over the world. Holden has some nice stuff that should be assembled in N.A. for N.A. not floated across the world like the G8 will be. __________________ Current: 2007 Pontiac Grand Prix 1997 Saab 900 2.0 Turbo(148,500 mi.) 1987 Chevrolet Silverado 10 (retired 11/12/2007; 219,986 mi.) Dead: 1983 Datsun 280 ZX by Nissan (146,857 mi.) 1986 Lincoln Mercury Lynx (64K mi.) 1979 Chrysler Cordoba w/ Corinthian Leather seats (130K mi.) 1976 Dodge Charger (130K mi.)

11-09-2007, 05:46 PM	#13 (permalink)
aldw 2.4 Liter SIDI ECOTEC Join Date: Oct 2004 Posts: 410	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin The automakers that can't globalize their product portfolio will end up in a world of hurt.

11-10-2007, 12:06 AM	#15 (permalink)
chinamonty 6.0 Liter L76 V8 Join Date: Feb 2005 Location: Caulfield (Melbourne) Australia Drives: Ford AU Fairmont Wagon (work car) Posts: 2,451	Re: GM, Toyota, Ford & Mitsubishi Reluctant To Further Invest In Australian Car Makin This cycle just keeps going. The car companies cry poor (which they probably are now) and the Government provides R&D money to prop up local manufacturing. I guess the only alternative is to get in with Indian or Chinese groups that do not have the design/engineering groups of world standard yet and sell the expertise to them and let them build the cars. Australia can put the the price of steel up as well. I would not like to see this but it is just one future scenario.

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