New Car Manufacturing Plan For Australia On The Way - New Certification Office Opens

[BBDOS CV8]

Car prices did drop once tariffs reduced last time, also because of the appreciation of the Oz dollar. Holden is still selling entry Commodores in the low $30Ks which are a lot more car than the old VZ they replaced.

Note that Holden prices dropped for most models when VE came in - some of that was more modern and improved manufacturing, some of it was reductions in component prices due to free trade agreements with America, China, Thailand.

Unions always think tariffs will protect jobs - ultimately they won't. If Holden, Ford, even Toyota Oz want to sell O/S they have to get used to low protection at home. Otherwise you get the silly standoff like the US, which tariffs cars coming in - and the EU, which tariffs cars coming in. So the only vehicles going in either direction are the higher-priced higher content ones. It sounds like the Malibu could be a good vehicle for Europe, but it won't get a shot at a reasonable price.

BMW and Mercedes survive very well in a high-manufacturing-cost country - they've devolved some assembly to the US or other places for lower-cost, lower volume stuff. Even GM does the same - Eastern Europe builds CKD 'Chevs' from Daewoo, a market segment which is booming. Australia gets low-end cars direct from Daewoo.

This is the path Holden has chosen. If Holden is smart, it can build upper-spec cars for Australasia, Europe, niche vehicles for the US.

As the proportion of lease and family large sixes goes down, the proportions of VXRs, maybe Opel Calais or OPC performance versions and Pontiac RWD go up.

BMW and Mercedes probably don't sell the proportion of sedans in the German market they once did - but they ain't complaining about the exports!

If we can just keep the yanks from killing Holden it could be modelled on the smart manufacturers who don't build a dozen cars and sell them in one place, they build one or two cars and sell them in a dozen places. It may be with the bombing out of Zeta in North America the way is there for Holden to provide a big Buick, Chev Caprice in limited numbers.

If Cadillac is really going Mercedes hunting in Oz, then the CTS and other models like the Escalade or STS could compliment this strategy, provided Holden is not dumbed down to clear a path. Those cars could be used to pull in the 'never buy a Holden' mob. But if they just play a numbers game and bugger upper end Holden sales they could ruin it.

Get your low-cost cars from low cost countries, buy your SUV and niche models from other GM lines where applicable. Buiild your halo cars and high-content ones here to play the patriot card.

Holden does need unique powertrains for it's vehicles. Much as I love the LSx series motors they need something more modern at some stage down the track - along with lighter cars.

[mmciau]

BBDOS CV8

Good observation and comment

Mike

[mikmak]

Originally Posted by EGG

500M for green cars... nothing has come of that so far

I've never really understood why it takes automotive companies so long to get new technology onto the showroom floors. Maybe one day there'll be a firm that can make this kind of thing happen in 6 months. If they survived the lawsuits etc they might make a lot of money.

It will be interesting to see how long it takes for this industry review to be finished, and then how long it takes to implement any changes. Long model lead times are one thing, but finalisation of government policy is something else all together.

Mr. Bracks needs to ensure that when it comes time to make his recommendation, he should find a way to convey his findings to those not familiar with conceptual basics of the industry, thus helping to speed up the implementation process. There is nothing more frustrating than when people oppose your concept because it goes against values or principals they cling to in their own field (regardless of the applicability). Ever tried to talk about cars with someone who is more interested in politics? You may get a polite nod, but their 1000 yard stare usually gives a strong indication that you've gone too deep or they have already made their decision.

Note: Yes, I am presently having trouble at work with this sort of thing.

[mikmak]

Oh and like mmciau said, well put BBDOS CV8. Perhaps you could make a submission to Mr. Bracks. Better yet, why not chair a statement of concerns from GMIs South pacific contingent? We'll need to meet at the board room (pub) for discussions of course.

[Bravada]

More than I hate see one of the Australian "Big Four" go down I see Aussie tax dollars getting wasted on some guy who cannot even find a proper job (at least he's got a good taste in cars...) and has to be supported by his colleagues with this nonsensical job... I was living under the assumption that Australia, much like other Commonwealth country, has a free market economy and that the Australian automotive industry is not a branch of government - dear Steven, please feel free to review hospitals, public roads or schools...

[BBDOS CV8]

Bracks is a smart political choice as he's an amazingly popular former premier and ran a highly competent government, but he's also a good choice because he ruled this state for ten years. He has good ties with the auto industry - for a socialist big business quite likes him - the three remaining makers have all but one of their plants here (Holden has engines in Victoria). Both Ford's factoies and Toyotas are here.

The government has limited power as to what it can do - governments of both persuasions in Australia have been deregulators for twenty years and it's hard to argue that they are wrong.

Australian economy is going gangbusters at present - we used to be directly and unduly affected by America. America is all but in recession and dropping interest rates to avoid falling into the pit, here the economy is so strong and the demand for workers impossible to fill - they're putting up interest rates to quell inflation. As a result the dollar is in demand and pushing US91c when ten years ago it was clinging onto 50c.

So there is little chance of regulation or further subsidy. The government does not want makers artificially propped up and neither really do the makers.

That is really the only way to move forward. It was the Button plan under a previous labour government which forsaw the present day - and John Button was pretty right as it turned out. Without that plan we may have lost what we have.

[mikmak]

Originally Posted by Bravada

More than I hate see one of the Australian "Big Four" go down I see Aussie tax dollars getting wasted on some guy who cannot even find a proper job (at least he's got a good taste in cars...) and has to be supported by his colleagues with this nonsensical job... I was living under the assumption that Australia, much like other Commonwealth country, has a free market economy and that the Australian automotive industry is not a branch of government - dear Steven, please feel free to review hospitals, public roads or schools...

I believe it is more about providing the manufacturers with assistance through investment rather than saying what they can or cannot do. Of course they would be some conditions, but as long as the findings are accurate, through relevant input from concerned parties, I doubt it would come to any sort of implied ultimatums.

[JoeT]

Local Eco Cars 'Now'

Terry Martin
15 February 2008
www.goauto.com.au

Pressure mounts on Federal Government to fast-track $500 million green fund.

THE Australian Greens have urged prime minister Kevin Rudd to bring forward his $500 million Green Car Innovation Fund in the wake of last week’s decision to close Mitsubishi’s car manufacturing operations in South Australia.

SA Greens MP Mark Parnell said the green fund – announced in March last year and “designed to kick-start the manufacturing of low-emission vehicles such as hybrid, flexible fuel and low-emission diesel vehicles” – was not due to commence until 2011.

The details of its establishment will be part of the car industry review to be completed by July 31, and to be headed by former Victorian premier Steve Bracks.

Click here to continue article

Holden ECOmmodore concept

[JoeT]

Car Industry Question Time

David Hassall
1 April 2008
www.goauto.com.au

There were, as we expected, more questions than answers when former Victorian premier Steve Bracks presented the Australian automotive industry review’s interim report in Melbourne yesterday.

Mr Bracks, who is heading the panel appointed by the Federal Government, presented a 41-page background paper and a 23-page discussion paper, containing data and information already well-known to the industry along with 59 questions designed to stimulate discussion before the final recommendations are made.

The questions start with the big one – Is the Australian automotive industry sustainable in the long term? – and cover a broad spectrum, including the possible introduction of tougher emissions standards.

Calling on “anyone with an interest in the local industry” to put forward their views, Mr Bracks said it was critical to receive submissions to identify a broad range of issues and challenges facing the automotive sector.

It is expected that a great deal of focus will be on the government’s two key assistance regimes – the $7 billion Automotive Competitiveness Investment Scheme (ACIS) and import tariffs, which are scheduled to go from 10 per cent to five per cent in 2010 and then to zero in 2015.

Click here to continue article

Steve Bracks will provide the answers by the end of July

[JoeT]

Holden Launches Green Supply Plan As Auto Review Nears

Marton Pettendy
3 April 2008
www.goauto.com.au

GM Holden jockeys for position in the lead-up to the Bracks auto industry review.

The Federal Government has moved to allay fears by some industry quarters that the lion’s share of its $500 million Green Car Innovation Fund, which aims to assist the manufacture of low-emission and fuel-efficient vehicles in Australia for five years from 2011, could go to the likes of Toyota for the production of its proposed Camry Hybrid.

Speaking at yesterday’s launch of the Greening the Supply Chain initiative between GM Holden and the World Environment Centre, which aims to promote sustainable development among Australian automotive industry suppliers and is part of the Australian government’s $7.2 million Supplier Capability Development Program, the minister for innovation, industry, science and research, senator Kim Carr, said the government was “agnostic” when it comes to technologies that will promote an environmentally-sustainable vehicle manufacturing industry.

Providing the clearest indication yet of the types of technologies for which the government will consider financial assistance, Mr Carr said a range of vehicle and transport systems will be considered as part of a review into the Australian automotive industry by former Victorian Labor premier Steve Bracks, who issued background and discussion papers on March 31 and has called for public submissions ahead of his final report to government on July 31.

“The government will contribute one dollar from the fund for every three dollars put up by industry. We are agnostic about the technology – hybrid, hydrogen combustion, hydrogen fuel cell, flexible fuel (petrol-ethanol), clean diesel, LPG – they are all on the table. So are technologies to make vehicles lighter and more aerodynamic,” he said yesterday.

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GM Holden To "Green" Its Supply Chain

GM Holden
2 April 2008
www.holden.com.au

GM Holden and the World Environment Center (WEC) are joining forces to launch a program to help GM Holden and its suppliers improve their environmental performance.

Announced today at GM Holden’s Port Melbourne headquarters, the “Greening the Supply Chain” program is aimed at promoting sustainable development at every link of the supply chain in Australia’s automotive industry.

Seventeen of GM Holden’s suppliers from Victoria and South Australia have signed up to be involved in the program.

GM Holden’s Executive Director of Corporate Affairs, Alison Terry, said that this was an important opportunity to improve the sustainability of the manufacturing processes in the supply chain.

“This program represents GM’s latest efforts in its long term commitment to support the development of Australia’s automotive industry. We certainly expect to generate tangible benefits for our suppliers in terms of improved energy efficiency and water reduction,” Ms. Terry said.

“It is a great opportunity and the number of suppliers who are putting up their hands to be involved in the program is very encouraging.”

The WEC is an independent, global non-profit, non-advocacy organisation that advances sustainable development through the business practices of member companies and in partnership with governments, multi-lateral organisations, non-governmental organisations, universities and other stakeholders.

The “Greening the Supply Chain” program was initiated by the WEC and has been launched in Mexico, Brazil, Romania and China where significant energy efficiency, environmental and water conservation improvements were reported.

The program will follow in the footprints of a similar undertaking at GM China that was completed in August 2007. Here, experts worked with GM suppliers to provide guidance and technical support for improving manufacturing processes so that they enhanced their environmental performance and also reduced operational costs.

GM Holden’s Executive Director of Manufacturing, Rod Keane, described the program as a great opportunity that fits perfectly into GM Holden’s wider environmental strategy.

“GM Holden strives to meet the highest standard of environmental performance in all its activities and we are strongly committed to introducing environmental initiatives and improving systems already in place,” Keane said.

“GM Holden works on the principle that emissions and waste can be prevented or minimised by the use of innovative technologies and environmentally compatible materials.

“We welcome the expertise of the WEC, particularly in light of the success they achieved in GM China.”

WEC’s President and CEO, Terry F. Yosie, described the “Greening the Supply Chain” project as a major focus for the WEC.

“The aim of the GM / WEC partnership is to demonstrate the ability to achieve specific, measurable results that improve competitiveness across the supply chain through the application of sustainable development practices,” Yosie said.

This project joins other environmental programs launched by GM Holden including the installation of a sophisticated computerised energy monitoring system at the Fisherman’s Bend plant to optimise the energy efficiency of the furnaces and compressed air distribution plants.

A number of water saving initiatives have also been launched aimed primarily at reducing water consumption in Holden’s engine production area. The results of these have seen the total water consumed per engine produced drop by over 38 per cent, from 930 litres per engine in 2002 to 576 litres per engine in 2007.

Bo Andersson, group vice president, GM Global Purchasing and Supply Chain said they were pleased that a number of GM suppliers were participating in the program.

"It gives the suppliers the chance to improve their environmental performance, while increasing their global competitiveness. This initiative is a win-win for everyone,” said Andersson.

New Car Manufacturing Plan For Australia On The Way, Says Federal Government
Australian Car Manufaturing Jobs Hang On Local Hybrid Production, Says Study

[1931Chevy]

could go to the likes of Toyota for the production of its proposed Camry Hybrid

What the heck, Toyota who is making about 15 billion a year and they go as low as this to get some money that could help the companies that have been producing cars in AU damn longer that they have been

[skylark68]

It appears the Australian government loves the Japanese just as much as the US government does. We kicked your a@@ back in '45, but now we love you guys more than we love our own domestic industries...

[hrcslam]

Originally Posted by 1931Chevy

What the heck, Toyota who is making about 15 billion a year and they go as low as this to get some money that could help the companies that have been producing cars in AU damn longer that they have been

You know. It's all business. They want a global monopoly.

Originally Posted by skylark68

It appears the Australian government loves the Japanese just as much as the US government does. We kicked your a@@ back in '45, but now we love you guys more than we love our own domestic industries...

Well, this isn't WW2 anymore. It's business. But, I do have to agree our government doesn't give a damn about our manufacturing industries; they only seem to care about the foreign industries and how they can help foreign industries take over American jobs. Can we replace ALL of our government at once? Vote in an entirely new government?

BOB LUTZ for PRESIDENT!!!!

[BBDOS CV8]

It might be surprising to Americans, but Toyota is veiwed as just as much an 'Australian' company as Holden and Ford. Or conversely, just as foreign. Many GM haters, and yes we have rabid Toyophiles here too, will (ignorantly) tell you Holden is really an American company importing cheap Korean cars, and making a car more than 50% from imported components. To anyone young who doesn't remember the war but loves their Sony or Nintendo or Corolla, why should they like the US more than Japan? They drive on the same side of the road as us, and Japan is quite close physically, one reason why we got a lot of road rocket cars and motorcycles never seen in the 'States.

After all, all three get CEOs imposed from o/s parents. All three import more cars than they make here. All three make motors here - although that is about to change for Ford. So apart from the fact that we once fought a war (and the Japanese were also allies in WW1) there is no reason in the modern detente to favour one country over the other. America and Japan have enormous interests in Australia, and vice-versa. A lot of the aluminium/steel/plastics/glass/silicon in the imported Japanese goods you buy, and a lot of the natural gas used in their manufacture, was dug out of Oz.

We've just been having a stoush with the Japanese over whaling in Australian territory in the Southern Ocean, and our PM just wrapped up a tour to the US, and is going to China. The Japanese are hugely suspicious of him because he speaks Mandarin and has he strong Chinese connections, including a son-in-law of Chinese-Australian lineage - he spoke on Chinese television before he was elected without an interpreter which impressed them no end.

The Japanese were making a huge fuss that he hadn't spoken with the Japanese PM since he was elected, so he has had to schedule a trip there to settle them down. So the Japanese regard Australia as pretty important, too. Toyota is even the major sponsor of Australian Rules Football - which really sticks in the throat, I can tell you. Like them winning NASCAR.

If the Oz guv'mint gives Toyo (or GM or Ford) money to do something here, build hyrbids or just green-up, they better do it. Mitsu is having to pay back $millions in State and Federal subsidies paid to them to develop local cars now they're closing their plant.

[mikmak]

It's interesting how you explained that BBDOS. Thinking back many moons, to before I was a car spotter, I remember not even considering whether or not a car was built locally. My dads first car was a Torana (LC) then we had a few dunnydores and a HK Pano for dads work. I was most confused when he bought a Mazda van to replace that old panel van.
Not because it was any better (it was) or because it was any cooler (it wasn't), but because it was all I knew. I dno't want to harp on about how I always assess what suits my needs and that's why I blahblah blah, like I do every time I get my nickers in a knot. At the end of the day, trying to get conquest sales is a job that I certainly don't envy. Some people will always pay for that little bit of familiarity and will continue to do so for as long as they can. Wouldn't say a bad word about their own car though, it's just "cars these days".