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Discussion Starter #1 (Edited)
http://www.drive.com.au/motor-news/...to-keep-its-factory-open-20160122-gmbycf.html

Holden is set to examine a proposal from a Belgian entrepreneur looking to keep its South Australian manufacturing plant in

business beyond 2017.

Punch International boss Guido Dumarey has sought support from Australian politicians for an audacious plan to continue

building Holden's Commodore in Australia after General Motors shuts down its local assembly operation at the end of 2017.

Dumarey has met with local leaders to win support for his plan to develop the Commodore's rear-wheel-drive architecture for

future use. The scheme relies on a solid slice of funding from the $800 million Automotive Transformation Scheme put

together by Australian authorities, as well as General Motors and Holden handing providing intellectual property, tooling and

facilities necessary to keep building cars.

His company has history in the field, having taken over a GM-owned French automotive facility under threat of closure before

transforming it into a successful constructor of driveline components.

Speaking with Australian automotive website Motoring.com.au, the automotive expert says his plan must work for Punch,

Holden and State and Federal Governments.

"I think we must find a solution that is good for all parties," Dumarey says.

"It must be fair for the country, for the brand loyalty. It must be fair for everything and that is important."

Dumarey says a reinvigorated Holden plant could keep component suppliers in business and help turn around Toyota's

Altona plant in Melbourne, which is also set to close in 2017.
Here's hoping Holden will disappear off GM Inside News - because it won't be GM anymore!
 

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Why would GM give away it's IP? I'm sure the proposal is genuine but it's never gonna happen.
 
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Why would GM give away it's IP? I'm sure the proposal is genuine but it's never gonna happen.
I think the IP part of the equation is actually the most likely part of the deal to happen.

GM can avoid tens of millions in shut down costs, and with the continuation of Zeta will make lucrative ongoing revenue of providing componentary to the vehicles.

Also GM has to avoid a PR disaster by denying the deal. It will cost them private sales as people would shun GM and it would anger some of their largest fleet customers who are Australian governments.

We also may decide to sell some of these cars through GM dealers, I'm thinking Caprice police car and SS could continue to be sold in the U.S. Also may continue to sell Zeta Commodores in Australia through Holden dealers.
 

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Holden will still be GM. These cars(if successful) won't have the Holden badge, that I can guarantee.
 

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My plan is to move the Holden plant to vacant Mitsubishi plant in Illinois. Then Illinois would be the Police car capital of country and make a bunch of really cool cars that only GM can make. I have written the Governor, Mary Barry and the head of the UAW but nobody ever responded and they never will...JP
 

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Holden will still be GM. These cars(if successful) won't have the Holden badge, that I can guarantee.
the struggle title is WRONG GM is KEEPING Holden going after 2017 AND giving 4 "NEW" SUVS the OZ manufacturing / ZETA is what is in question and that WILL NOT be HOLDEN if successful


My plan is to move the Holden plant to vacant Mitsubishi plant in Illinois. Then Illinois would be the Police car capital of country and make a bunch of really cool cars that only GM can make. I have written the Governor, Mary Barry and the head of the UAW but nobody ever responded and they never will...JP
Kiss CAFE / EPA CO2 standards good by unless EVERYBODY parks there Silverado's and buys BOLTS + these "cop/fun" cars
 

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Why would GM give away it's IP? I'm sure the proposal is genuine but it's never gonna happen.
They're not.

All of these plans require huge sums of tax payers money. That's why they are talking with both state and federal government so see how much money they can put in.

GM won't give it away for free; they want to walk away with a fist full of dollars and the Belgium guy wants the government to put up a big portion of the initial investment so he can take the profits later...

No government money, no deal....
 

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They're not.

All of these plans require huge sums of tax payers money. That's why they are talking with both state and federal government so see how much money they can put in.


No government money, no deal....
Punch is pretty much on record saying that non-payment consideration is their part of the deal. So GM will not be getting a payment for it. Rather they was will save millions in shut down and will probably have exclusive contract to provide major componentary and mechanical systems for the car.

Under ATS the Government would only contribute $1 for every $3 for what Punch puts in so it's going be his own chequebook paying for a significant amount. Of course there may be other incentives that the Australian government puts in. It's always been a good investment for the Ausytalian government getting much more back in tax revenue than what they put in. It also diversifies an economy (vital for a country dependent on the rain for Agri and global commodity prices for mining), builds skill sets and is a good export earner.

For decades both sides saw how obviously beneficial the industry is, the only real time the Government rejected the investment was Hockey and Abbott that had an ideological opposition to the industry rather than any actual monetary issues with what it costs and what it contributes.
 

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If GM shuts down Holden it might as well quit trying in Australia.
 

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Another option is that GM may be offered an ownership stake in the new company. I could see it eventually listed on the ASX with GM owning a portion.

As I said previously we will be the easiest part to sort out. GM has more to gain with Zeta continuing instead of shutting down the Holden plant.
 

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Correct me if in wrong, but didn't GM decide to close its AU manufacturing because the government of the day wouldn't pay the incentives GM insisted were needed to continue? If a new government has incentives on the table and GM wants to avoid shut down costs, why wouldn't it apply for the funding itself and reverse its existing plan? Too late in the game?
 

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I think GM would be mad to turn this deal down as it's saving them a bucket load of money, I think GM underestimated how much it was going to cost them to shut down Holden and it's costing them more then they planned.
If they turn down the deal which will save them money I think some share holders might wonder why GM is choosing to loose the money I know I would if held shares in GM.
Holden will continue as an import only Company, if this deal gets up the cars wont be wearing Holden badges that's for sure.
 
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Correct me if in wrong, but didn't GM decide to close its AU manufacturing because the government of the day wouldn't pay the incentives GM insisted were needed to continue? If a new government has incentives on the table and GM wants to avoid shut down costs, why wouldn't it apply for the funding itself and reverse its existing plan? Too late in the game?
I would say that's the case, GM is like trying to steer a big cargo ship, it's very difficult to change direction quickly which may be needed when major things change like a new Government and the Australian dollar falling 30% in the last 12 months.

And simply maybe it just doesn't fit GMs future planning or it's not something they want.
 

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I would say that's the case, GM is like trying to steer a big cargo ship, it's very difficult to change direction quickly which may be needed when major things change like a new Government and the Australian dollar falling 30% in the last 12 months.

The Opel Insignia has been lined up, but I don't see it selling well, I would be suprised if it outsells the Mazda6
I think they are pushing it to out sell it but you never know what could happen.
I do agree once things were put in motion GM would have issues changing their decision.
 

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I would say that's the case, GM is like trying to steer a big cargo ship, it's very difficult to change direction quickly which may be needed when major things change like a new Government and the Australian dollar falling 30% in the last 12 months.

And simply maybe it just doesn't fit GMs future planning or it's not something they want.
I believe GM WANTS Holden to sell FWD "global products" and NOT sell ZETA RWD products that Americans keep calling for but NOT buying at the VOLUME/PRICE GM wants + wants the greater volume/efficiencies from there existing FWD chassis
and is using "ford/the govt/ expensive labour" as an excuse to kill off the one rogue product
 

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I cannot see this happening, to be honest. I know Guido Dumarey is a clever guy and he has done this successfully in the past, but the cards are laid out differently this time.

Firstly, the three manufacturing plants left depended upon each other for survival. Local suppliers cannot survive on one factory alone, so where would a revived Elizabeth plant source its parts?

How many cars a year does the plant need to make in order to be viable? 100k? 200k? Holden have barely been doing half that figure in recent years. If he does magic up 200k vehicles per annum, to whom is he going to sell them? If it's GM's IP, I cannot see GM agreeing to let Guido sell them with Ford badges (or Hyundai or whatever). If GM thought it could sell 200k Australian-built Zeta vehicles around the world per year, surely it would already be doing so?

it just does not add up to me.
 

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Whatever comes out of that factory post 2017, and whatever badge it wears will be a much more Australian product due to one simple fact. This guy actually wants to support manufacturing in our country and try to keep Australian's employed, and possibly make the production line viable again. Holden would've loved to export their Zeta based products, and im pretty sure markets like China and India would've lapped them up. Sadly, internal politicking at GM has and always will cripple their most creative works simply due to the fact that "they're not made in the US".
 

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Whatever comes out of that factory post 2017, and whatever badge it wears will be a much more Australian product due to one simple fact. This guy actually wants to support manufacturing in our country and try to keep Australian's employed, and possibly make the production line viable again. Holden would've loved to export their Zeta based products, and im pretty sure markets like China and India would've lapped them up. Sadly, internal politicking at GM has and always will cripple their most creative works simply due to the fact that "they're not made in the US".
Would it be that China would build these products and export to Australia?
 
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