Holden Reaffirms Support For Australian-Middle East Free Trade Agreement Negotiations

[JoeT]

GM Holden Reaffirms Support For FTA Negotiations

GM Holden Limited
9 August 2007
www.holden.com.au

GM Holden today reaffirmed its support for this week's free trade agreement negotiations between the Federal Government and the Gulf Cooperation Council (GCC).

GM Holden Chairman and Managing Director, Denny Mooney said the Middle East is currently the Australian automotive industry's largest export market.

"Holden has had considerable success in the Middle East in recent years and we view the region as a market with great potential for further growth. This was borne out last by our best year of sales to the region in 2006 when we sold over 31,000 vehicles."

GM Holden's Commodore and Caprice, known as Lumina and Caprice respectively, are sold under the Chevrolet brand in the Middle East with luxury model, Chevrolet Caprice proving popular with buyers looking for both prestige and value for money.

Mr Mooney said the Middle East has been GM Holden's most enduring export market since the program began in 1998.

"We've been exporting vehicles to GCC countries for a decade and these exports have become a key component of our strategy to diversify our volume base and fully utilise capacity in our vehicle and engine plants.

"Thanks to this strong export strategy, 50% of all the vehicles GM Holden manufactures in Australia next year will be driven on foreign roads - many of these in the Middle East."

GCC consumers have demonstrated a strong preference for the types of vehicles Australians have traditionally embraced. Last week, Chevrolet Caprice received its second major award in the region as it was named Best Executive Sedan by Middle East Car magazine. In late 2006, it was announced as Luxury Car of the Year by Middle East Autocar magazine.

"The GCC currently has a 5 per cent tariff on passenger motor vehicles. An eventual free trade agreement would ensure Australian manufacturers maintain their competitiveness in the Middle East market as the GCC actively seeks agreements with other major car producing economies," Mr Mooney said.

GM Holden began its export program in 1954 and exported 46,074 Holden vehicles around the world last year. Cars were sent to every continent except Antarctica.

Holden Achieves Best-Ever Middle East Exports Results
Holden Couldn't Survive As A Local Operation: Mooney
Car Makers Ask For Higher Tariffs To Save Local Industry


The Holden-built Chevrolet Caprice is popular in the Middle East

[mikmak]

I'm glad somebody wants to buy our cars. Lets hope the FTA actually has some benefit for Aus besides the exports they take.

[Stormin]

Originally Posted by mikmak

I'm glad somebody wants to buy our cars. Lets hope the FTA actually has some benefit for Aus besides the exports they take.

Don't you wish the oil came back under the FTA?

[Rick_VT]

Only problem is any benefit to Holden through lower tariffs woudl also benefit toyota as well and maybe allow them to sell more camry's, but no tdoubt the commodore and caprice are on a higher profit per vehicle then camry, would be nice to know just how much they make per car over there.

[nota]

Originally Posted by mikmak

Lets hope the FTA actually has some benefit for Aus besides the exports they take.

Of related interest is our FTA with the USA, which came into force on January 1st 2005 and was touted to add a net $6 billion a year to our coffers within a decade. Little information has been provided since by our government, nor are meaningful figures publically revealed by the ABS or DFAT

However the US Census Bureau has not been quite so reticent. Their data shows that in the decade preceding this agreement, the US enjoyed an uninterrupted trade surplus with Australia averaging USD$6.7 billion a year

But in the first year of the Free Trade Agreement the US advantage rose to USD$8.5 billion and in the second year it shot up to USD$9.6 billion - representing an increase to our respective trade deficit of around 40%

Originally Posted by Stormin

Don't you wish the oil came back under the FTA?

Nah that comes under a different government scheme

[DuSpinnst]

As Holden should, the Middle East is crucial to keeping the factories running full throttle as is China, Korea, and the US (to lesser extents).