Holden cuts 400 jobs in SA and 100 in VIC

[macca_779]

News today of big cuts at Holden. Press release about to follow, but not looking good.

[macca_779]

http://www.heraldsun.com.au/news/national/holden-set-to-make-major-announcement-regarding-jobs-at-south-australian-and-victorian-plants/story-fncynkc6-1226614971545

HOLDEN has announced it will cut 400 car assembly line jobs at the Elizabeth plant through voluntary redundancies - and a furious Premier Jay Weatherill says the company has gone back on its word.

The car maker will lose 400 workers from the plant at Elizabeth in Adelaide's northern suburbs - nearly one in five of the plant's total workforce of 2100.

A further 100 engineers based in Melbourne will also lose their jobs in Holden's biggest round of job cuts since the Global Financial Crisis.

Mr Weatherill said Holden had breached the conditions of an agreement with the State Government under which they were to receive many millions of dollars in government assistance.

"In my view, an agreement has been breached," Mr Weatherill said. "It wasn't just an agreement with (Holden chairman and managing director Mike) Devereux, it was an agreement with the chief executive of General Motors Holden, Mr Dan Akerson. It was an agreement that I shook my hand with that man on."


He said the State Government had not yet paid its share of the funding agreement to Holden.

"I'm talking about the nature of the agreement Holden reached with us in the full knowledge of all the possible circumstances that could occur in the world of automobiles," Mr Weatherill said.


Holden employees watch the unveiling of the VF SS Commodore sports sedan at the Elizabeth plant in February. They now face an uncertain future with more job cuts looming. Picture: Mark Brake

"There were minimum employment levels (in the agreement with government). This decision today would breach those agreements.

"I'm insisting (that) corporate citizens behave with integrity and keep their agreements. I'll be reflecting on our options ... having only learned about this matter today."

Acting federal Minister for Climate Change, Industry and Innovation Gary Gray said the decision was disappointing.

"Our thoughts are with the affected workers and their families during this difficult time," Mr Gray said.

"The Gillard Government has a range of measures available to assist workers, including intensive employment support under the Automotive Industry Structural Adjustment Program."

Analysis: Holden had little choice

Holden's move comes as most of the work done on the new Commodore has been completed before it goes on sale in June.

"It was very terrible, a lot of people were wiping tears out of their eyes," one worker said after being briefed on the job cuts.

The announcement comes just one week after Holden released figures that showed it had received $2.17 billion in government funding over the past 12 years, roughly twice as much as Ford ($1.1 billion) and Toyota ($1.2 billion) received over the same period.

The engineering losses are also confirmation that Holden is no longer the engineering "home room" for any particular General Motors vehicle, and its future locally made cars will instead be adaptations of global models.

The 500 job losses announced this afternoon follow 180 job cuts at Elizabeth in November 2012, and a further 40 at the Port Melbourne engine plant in March 2012.

It is the biggest single redundancy program since Holden axed 500 positions in July 2009 in the wake of the GFC, after exports of the Commodore to the USA ended when the Pontiac brand was shut down.

Billions handed out to Aussie car makers

The latest cutbacks take the Holden factory workforce down to 1750 jobs, while engineering will shrink from 675 positions to 575. By comparison, Ford Australia employs about 1100 engineers, most of whom work on overseas vehicle programs even though they are based locally.

The latest job cuts are yet another grim reality facing the Australian car industry as it struggles to compete with cheap imported cars aided by the strong Australian dollar.

Cars

Last year Ford axed 340 jobs (to take its workforce at Broadmeadows and Geelong to 1500) while Toyota axed 350 manufacturing positions, to take its head-count to 2500 at its Altona facility.

Holden said the job cuts were due primarily to a reduction in demand for its locally made Cruze small car "led by the high Australian dollar, combined with one of the most open and competitive car markets in the world".

Gallery: Holden through the ages

The restructure will see Holden build 350 cars per day from August, instead of the 400 cars a day it currently builds during each daily eight-hour shift.

A statement from Holden boss Mike Devereux said: "A workforce reduction is always the last resort and Holden has taken every possible step to address our challenges over the past 12 months. This is a very difficult decision because people and their families are involved. These are hard-working Australian men and women and we will be doing everything in our power to help them make informed decisions about their future."

Holden says it has committed to local car manufacturing until 2022, while Toyota is negotiating for the next-generation Camry it plans to build to 2024.

Ford is yet to apply for government assistance for a locally made car beyond the 2016 deadline set for the Falcon sedan and Territory SUV.

[VX2VESS]

Don't they need to make a lot of VF's for the U.S. so why?

Spose it was supposedly the last commodore to be designed.

[powerd]

Don't they need to make a lot of VF's for the U.S. so why?

Spose it was supposedly the last commodore to be designed.

Unfortunately, the number won't be that large. Because the SS will be sold as a premium car there, senior GM figures have already stated that the volume will be small (by their standards). The reason is the high cost of the Commodore landed in the US. So it will probably only add back the volume lost last year, perhaps somewhat less. Sad but true.

I feel sorry for the people who have lost their jobs, but as stated it is not a result of the work they do, but because of the changing market demands. Translation: not enough people want to buy the Commodore any more.

My tip is that the Commodore will not be produced at Elizabeth after the VF, but be replaced with something more desirable to buyers or, perhaps even worse, the plant may close.

[C4B]

Problems Solved:

http://www.couriermail.com.au/news/breaking-news/buy-local-car-policy-needed/story-e6freono-1226615152399

[macca_779]

I don't think Elizabeth will close as its important to keep manufacturing here while we can even if the government has to prop it up somewhat.

What I believe will happen is the next all new commodore will be badge engineered and built off a world platform. But built here still

Design in Melbourne will be gone. It's a shame because the do great work. But as alluded to in the press conference Australia is the most expensive place in the gm empire to design. Hence I believe it will be gone.

Engine manufacturing I believe will stay, fingers crossed. Even though not economically viable it's another one where we don't want to loose that capability. The v6 is used in a lot of platforms so I think capacity will still keep the factory alive.

[planetdavo]

This sort of stuff happens all over the world in the car industry from time to time.
The difference is that, being an Australian manufacturer, you hear about it.

[Jag530G]

I don't think Elizabeth will close as its important to keep manufacturing here while we can even if the government has to prop it up somewhat.

What I believe will happen is the next all new commodore will be badge engineered and built off a world platform. But built here still

Design in Melbourne will be gone. It's a shame because the do great work. But as alluded to in the press conference Australia is the most expensive place in the gm empire to design. Hence I believe it will be gone.

Engine manufacturing I believe will stay, fingers crossed. Even though not economically viable it's another one where we don't want to loose that capability. The v6 is used in a lot of platforms so I think capacity will still keep the factory alive.

The V6 is also made in Canada and America, when Holden stops making cars here, they'll stop making engines here too...

I'm inclined to think the worse news today is the sacking of the 100 design staff, Since Holden has great expertise in RWD cars, that to me is proof that the 2017 "Commodore" won't be RWD, it will be a rebadged FWD/AWD 4/6cyl Malibu/Impala. If that's what they are going to build, may as well close the joint down, I can't see a Malibu/Impala selling even at current VE sales level.

Cheers, Matthew

[VL Executive]

Not good at all. :(


Holden said the job cuts were due primarily to a reduction in demand for its locally made Cruze small car

Well, the locally made Cruze was ment to be one of the saviors of Holden. And it appears its not doing as well as they want it to.

As much as I hate to think it - I think the "Holden" ships starting to take on water

[macca_779]

The V6 is also made in Canada and America, when Holden stops making cars here, they'll stop making engines here too...

I'm inclined to think the worse news today is the sacking of the 100 design staff, Since Holden has great expertise in RWD cars, that to me is proof that the 2017 "Commodore" won't be RWD, it will be a rebadged FWD/AWD 4/6cyl Malibu/Impala. If that's what they are going to build, may as well close the joint down, I can't see a Malibu/Impala selling even at current VE sales level.

Cheers, Matthew

I'd buy a camry before I bought a piece of junk impala

[powerd]

I'd buy a camry before I bought a piece of junk impala

And maybe that is the basic problem, GM has been sinking steadily since the 1970s, and is still taking on water badly. It is only here now because the US government pumped all the water out and let it float again - ie, bankruptcy, wipe the debts, then tipping in huge dollars to start them up again. Opel is sinking, they tried to sell them off but there were no takers. THey even considered closing it completely. It's future looks pretty bleak. SAAB sank without a trace. How much money did they lose in that ****-up? And Vauxhall isn't exactly a booming business, it is struggling too.

China looks good though, but they need a lot more than that to survive. The government money here just seems to get continually chucked into a body in a coma and on life support, with little or no hope of ever getting out of bed and walking on its own two feet again. The dollar is not going to go down to 70 cents for many, many years, if ever again, Australia is not going to become a low cost manufacturing country and Holden and Ford are never going to sell large volumes of large RWD cars again with minimal competition from other brands. The market has changed dramatically and it isn't going back. And there is no possible economic or business reason to design and build a car here unless it was off a shared global platform with large export numbers and a volume of at lest 100,000 or more. That just isn't going to happen.

Its time to realise that, and shift the government investment focus to the things that we have a competitive advantage in, not the stuff that we are certain to lose money at.

[C4B]

Realistically we are all paying for Holdens whether we buy one or not.

We've had all the Video Shops in our area go bust (they too were peddling a product no one wanted any more).... I don't see the government bailing them out.

[planetdavo]

Realistically we are all paying for Holdens whether we buy one or not.

We've had all the Video Shops in our area go bust (they too were peddling a product no one wanted any more).... I don't see the government bailing them out.

Bit negative suggesting no-one "wants" Holden's anymore! The Aus dollar ain't going to be this high forever. Anyone that knows the financial markets knows that (much) dearer imports are inevitable. Just a matter of how long.
The car industry is a massive employer, both directly and indirectly. An awful lot of skills are utilised that would be a tragedy for this country to lose.
Video shops are simply retail stores of a ready made product, with no skillset required. Not surprising they receive no real support, bar efforts to retrain staff perhaps.

[VX2VESS]

mm everyone buys 4wd and Suv's these days. Can't be because they save fuel and running costs with them.

2031

[planetdavo]

mm everyone buys 4wd and Suv's these days. Can't be because they save fuel and running costs with them.


Many do, but comparisons to the "good old days" for Commodore aren't realistic.
With around 60 brands now, fighting something fierce for "just" one million sales, casualties are inevitable.
There are many, many reasons for the changing buyer habits. Some are fundamental, and some are cyclical.
If Europe wasn't so deeply in the sh!t- hence we're getting "dumped" with cheap excess production meant for Europe, and our (temporarily) high Aus dollar was lower where it will end up again- leading to more expensive imports, things for the locals could easily be healthier than they currently are.

[LuisS]

Here's where some of the 500 jobs went to...

2037

[powerd]

.
If Europe wasn't so deeply in the sh!t- hence we're getting "dumped" with cheap excess production meant for Europe, and our (temporarily) high Aus dollar was lower where it will end up again- leading to more expensive imports, things for the locals could easily be healthier than they currently are.

Lots of "ifs" there planetdavo and not a mention at all of the basic fact that people don't want large mass market RWD cars like the Commodore any more. The world has moved on but Holden has largely stood still as a basic low volume, low quality, less desirable brand with products not enough people want to buy.

It will be very sad if Holden goes to its grave bleating "Tell them they were wrong!" I really hope it does survive, and it finds a way to have a competitive car to build here but I don't feel at all confident it will. And a better product range overall.

Anyway, who said cars are being dumped here? Most of the Euros sell at premium prices here, as do Japanese and Koreans and the importers are mainly laughing all the way to the bank, not to mention the dealers. Which dealership would you rather own, planetdavo? A Merc, VW, Audi, Hyundai, Toyota, or a Holden one? Hmmmm...... now let me think.....

......Tell 'im he's dreamin'...................

[planetdavo]

Powerd, as one of the resident "kill the stupid money sucking aussie car industry" posters, I wouldn't expect you to understand what I wrote...

[offshore]

Its the Australian dollar is ridiculously high it should be down around 65 to 75c range. As far as Im concerned the commodore is one of the worlds great cars especially when the VF comes out. Where else can you get a nice sized rear wheel drive car and powerful V8 this side of the Mercedes AMG.

I havnt had a car for a few years now because im always away with work and I hire cars alot when im at home and guess what I hire even though its just for me not a small jap car but an SV6 commodore every time. The only reason Commodores are declining in sales is the price and the prices are high compared to the US and Europe as every other bloody thing in Australia is these days. If the Australian dollar was back down around 65c then comparably the price of the Commodore would be ok but the way it is now in US dollar terms its way to expensive.

Anyway having said that I plan on getting a VF most probably.

Cheers

[powerd]

Powerd, as one of the resident "kill the stupid money sucking aussie car industry" posters, I wouldn't expect you to understand what I wrote...

Gee Planetdavo, shoot the messenger and avoid the issues, is it? And what is there to understand? The Commodore isn't selling, it has no realistic economies of scale, Cruze sales are falling, the competition is very tough and getting tougher putting downward pressure of prices among 50 plus brands, the dollar is not going to fall significantly, if ever, and Holden has a fairly limp product range.

I understand quite well, just as the buyers do because they are choosing something different.

Rather than put me down, why don't you explain how the Commodore is going to sell 100,000 units at least per year, which is what it probably needs as a minimum to have a viable future? And BTW, a nice interior and a bit current tech is not going to consistently multiply sales by three times their current levels.

[gassit320]

The VE is a bloody good car, didn't it win car of the year? Ironic that the government let's all the cheap and nasty Asian crap in with little protection for Ford and Holden (yes I know there are some decent Asian cars) but gives them millions in handouts. It reminds me of the problems Qantas faces, the Australian government welcomes all airlines from Asia and the middle East with their low labour costs and fuel costs (and in a lot of cases, low safety) and QF has no hope of competing, so jobs go offshore, flights get code shared and every body bitches and moans whilst all the while just going for the cheapest price, funny that, 600 to Bali with Jetstar or 499 with Garuda, and guess which one they go for?
Now we've also got the ridiculously cheap and nasty Chinese crap coming in and don't the bogans just love it "look at my new 4wd,i know it's got a 1star safety rating, but hey its only for the wife and kids, and, it's new", give me a 5 year old holden any day

[redvxr8clubby]

If Europe wasn't so deeply in the sh!t- hence we're getting "dumped" with cheap excess production meant for Europe, and our (temporarily) high Aus dollar was lower where it will end up again- leading to more expensive imports, things for the locals could easily be healthier than they currently are.

I don't see any "dumping", I do see prices being a bit cheaper than they were, better value, but "dumping excess production meant for Europe" I don't see that. I think we just have a more competitive market and vastly different exchange rate to several years ago. Some of the cheaper end pricing comes about from cars built in Thailand for example Ford Fiesta, Mazda 2, and even in todays paper Suzuki is manufacturing the Swift in Thailand now, no drop in Suzuki pricing but adding cruise and Bluetooth for same money on Thai built GL model cars.

[powerd]

I don't see any "dumping", I do see prices being a bit cheaper than they were, better value, .

Agreed. Aren't there heaps of people on here and other forums complaining about the high prices of imported cars in Australia? And not just at the top end, there how lots of complaints about medium priced cars too.

How can people claim imports are too expensive, then claim they are being dumped?

[C4B]

How can people claim imports are too expensive, then claim they are being dumped?

Ask whether those making "dumping" claims are impartial...

The answer is pretty obvious!

[HSV01x]

http://www.caradvice.com.au/224013/holden-to-cut-500-jobs-one-month-out-from-vf-production-start/

A little more news and opinion of this terrible news. As the news really hits home, is this a reflection of the global economy, or a lack of strategy on the board that doesn't know the Australian market?

[CLUBRED]

More trucks full of Mazdas rolled into town this week, although I've noticed there's a swing away from the usual 3's and CX5's - allot more 6's (mostly sedans) are making up the numbers. Haven't seen a rig with Holdens on it for a week or so, the last one only had ONE commodore on it.

[bozodos]

That's funny, because I see at least one or two Toll trucks FULL of Holdens (and mostly Commodores at that) rolling through town on a daily basis.

[DevilYellowCV8]

Tis sad the way Australia is slowly losing its identity. In years to come we will all sit back and say.. we used to own that, we used to make stuff like that, we designed that, we came up with that idea.. and yet it will all be foreign owned and imported in from overseas somewhere. And its not just cars. Not long ago we used to be called the "clever country". Think we are the "dumb country" now, with the rest of the world laughing at us. We need to start looking after ourselves. Putting Australia first, instead of seeing all of our hard earned money go offshore.