Holden Couldn't Survive As A Local Operation: Mooney

[JoeT]

Holden Couldn't Survive As A Local Operation: Mooney

Ian Porter
25 July 2007
www.drive.com.au

Holden's outbound chairman Denny Mooney says greater integration into the GM empire was a matter of life or death for the local car maker.

The integration of GM Holden in the General Motors network was Denny Mooney’s biggest achievement in his four years in charge, but it was not a smooth process.

At a farewell dinner in Melbourne, the outgoing chairman and managing director said the integration with GM had been a matter of necessity.

‘‘We couldn’t have survived as a local operation,’’ Mr Mooney said.

‘‘Whether it’s the engine business or the vehicle business, if we didn’t have those other markets around the world, we would have had a tough time surviving.’’

But not everyone saw it that way at first. ‘‘There were plenty of people who would have liked it to be like the good old days, but the reality of the world is the auto business is never going to be like the good old days. This is a global business.

‘‘There was resistance to being part of GM when I got here. There was a fear of becoming part of a big corporation and losing the uniqueness of what we do here.’’ But he said having an unusually young workforce had helped the process.

‘‘That’s made it pretty easy. A lot of the engineers are spending time in Detroit, or in Europe, China or Korea, and it has been a great opportunity for them.

‘‘The young workforce has helped the integration happen a lot quicker than I thought it would.’’

Holden already exports the majority of the six-cylinder and all of the four-cylinder engines it makes and is planning to raise vehicle exports to the point where they absorb 50 per cent of the production at the Elizabeth plant in South Australia.

Click here to continue article

Outgoing Holden boss Denny Mooney with a Pontiac G8

[samkung]

Will they decide to buy the next Astra/Viva in australia since ford is building their focus, but then ford doesnt have factory in korea which GM does

[demonv8]

With the Aussie dollar strengthening, even exports might not save them in the long run....

[Aych Es Vee]

I wonder who would buy Holden if GM had to sell up?
Because that would completely fark Holden.

[chinamonty]

Originally Posted by demonv8

With the Aussie dollar strengthening, even exports might not save them in the long run....

Not necessarily. If you buy your raw materials in USD and sell product in USD then the only problem you have is local wage growth and inflation on local services and products you use. I suppose the unknown is what percentage do they buy in USD.

[rueben44]

That is why Holden and Pontiac need to fully link!

[ford&holden]

I'm curious, it seems that when GM NA or Ford NA are in a pickle, they were quick to intergrate Holden and now just recently Ford, but when Holden or Ford needed a break they were told to fund themselves...in the end it's inevitable.
I might be a little paranoid!

[redTT]

Mooney hasnt really done anything whilst at Holden, most of the work was well underway before he came in. Daewoo was purchased by PH so that it could use its lower priced and higher return small cars and sell Holden engines. Export increases was also well under way along with the VE platform. The only thing GM done was change the name from VE to zeta.

Have a look at the wording for this drive article................geee it really does look like they want holden to fail.

[Stormin]

Originally Posted by ford&holden

I might be a little paranoid!

Yes, but probably justified.

[mikmak]

Congrats on 1000 posts F&H. Aren't you llucky, you now have a noisy, harsh V6 :P

On topic: Oh, he did do something. Well done Denny. Good luck back home.

[mmciau]

Mooney's comments about Rod Keane at the Elizabeth plant are very true - "you can eat your dinner" off that plant's floor!!!!!

I recall in the mid 1990s, I was involved in an apprentice Training initiative out there at Elizabeth and every time I was there, the plant was spotless.

mike

[ford&holden]

Originally Posted by mikmak

Congrats on 1000 posts F&H. Aren't you llucky, you now have a noisy, harsh V6 :P

yes...i think i prefer the 3.9l V6. I'm still waiting for your BF11 review

[dallennium]

Here's an Idea, change the name to Opel. If there is one thing GM needs it is to reduce the number of Brands world wide.

[D C]

Originally Posted by dallennium

Here's an Idea, change the name to Opel. If there is one thing GM needs it is to reduce the number of Brands world wide.

Good thinking. Why not change Chevrolet to Opel as well?

[dallennium]

Originally Posted by D C

Good thinking. Why not change Chevrolet to Opel as well?

Funny! Saturn would be a good Idea though