Holden Exports Weaken Due To Strong Australian Dollar

[patrickbec]

Exports from GM's Australian car plant nosedive due to strengthening currency
By Saifur Rahman, Business News Editor
Published: March 03, 2008, 00:47


Adelaide: "My days start with three concerns: how many cars are we going to make, how many are we going to sell and what's the value of the Australian dollar against major currencies," Rod Keane, executive director for manufacturing at General Motors' Holden plant in South Australia, said.

"The strength of the Australian dollar has negatively impacted our exports. Ever since the value of the Australian dollar began to appreciate around 2001-02, our exports began to decline. So there is a direct co-relation."

GM Holden Ltd exported 60,000 cars in 2005, which came down to 36,500 units in 2007, despite a growing demand for cars worldwide, including the Middle East. "Roughly half of our exports go to the Middle East, where we mainly supply the Chevrolet Caprice and Lumina," he added.


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The company's production plant has a capacity for 145,000 units and it expects to produce 135,000 units this year, up from last year's 107,795.

"We expect to export about 60,000 units this year, about half of those to the Middle East," Keane said.

"The Middle East is a good market and a growing market for us. The demand for luxury cars is growing in that region which could boost our overall exports."

Holden was the first Australian automobile manufacturing plant, set up in the 1920s.

Rest of article:
http://www.gulfnews.com/business/Aut.../10194251.html

[Baz]

Yes, the strength of the Aussie dollar is somewhat concerning. When you compare a G8 to a SS-V there is quite a big difference in pricing. Aussies will pay upwards of $15 000 AU dollars for what is realistically the equivalent to the G8 GT. Unless GM bump up the sticker price of the G8 in the US and also the Chev models exported to the middle east exports will be working against Holden's financial prospects.

[Lichtronamo]

GM is probably losing money on each G8, just like they are losing money on each Saturn Astra. Until they can get NA production of each car, it's unlikely to change as I don't see that they have the ability to raise the price of either product.

[Rick_VT]

It really sux that Holden get the chance to show how good the cars they make can be and they get killed by the dollar

[chris442]

Interesting how they exported about 15,000 GTOs to the US in 2005 and 0 in 2007. Maybe that would account for the discrepancy. Maybe the number will rise again when they start exporting G8s. I'm not a mathematician, but that's my guess what will happen in the future.

[TriShield]

Originally Posted by Lichtronamo

GM is probably losing money on each G8, just like they are losing money on each Saturn Astra. Until they can get NA production of each car, it's unlikely to change as I don't see that they have the ability to raise the price of either product.

Nor does our government have the self control or intellect to do anything about the steady decline of our dollar.

[jbernie]

With the Aussie dollar going around US$0.93 ie close to being 1 for 1 it makes exports to the US a big problem.

Back when the Aussie $$ tanked to about US$0.56 life was great for exports. Now life is great for travelling outside of Australia.

Is Oshawa the Canadian plant which is going to be doing the Camaro? They really need to look at having some of the vehicles produced here in Nth America otherwise they won't be able to see the product for a price the customer is willing to pay, ie under US$40k.

[ford&holden]

And this is why suggestions that Ford AUS should jump right in with Toyota and Holden and start exporting the FG falcon are misguided.

This not the only answer to increasing your local sales and stability.

GM's plan with the zeta based cars would appear a little more fragile lately, maybe Ford's delay in getting it's act togther for a GRWD platform could be a blessing in disguise?

Shows just how quickly business can change and how auto companies must adapt at an ever increasing pace to survive. I wish Holden luck while toyota can sweat just a little longer...

I watch with interest how our local manufacturing base will unfold over the next 3 years.

[zabolots]

Originally Posted by Lichtronamo

GM is probably losing money on each G8, just like they are losing money on each Saturn Astra. Until they can get NA production of each car, it's unlikely to change as I don't see that they have the ability to raise the price of either product.

Yeah, too bad that CAFE killed those plans though.

My guess is that the G8 will be a short-lived vehicle (3-4 years) like the GTO and will probably have a quiet price increase in the 2nd or 3rd model year.