Holden To Aussie Government "Moar Monies Plz"

holden to aussie government moar monies plz

Hot on the heels of a $275 million “investment”, Holden is going back to the Australian government, hat in hand, asking for more money. This time, Holden wants another $265 million to keep their assembly plants online.

According to Holden, assembling cars like the Cruze and Commodore in Australia carries a premium in the neighborhood of $3460 USD compared with other locales like Korea. The Thailand built Colorado 7 and the Korean-built Captiva, both crossovers, are said to help offset the loss-making nature of Australian manufacturing.

Holden is said to be seeking more money in the wake of Ford’s closing of their Australian manufacturing operations. The incoming administration in Australia’s government are known to be supportive of propping up Australia’s manufacturing sector, with the new Industry Minister a vocal supporter of the auto industry. Meanwhile, opposition figures have indicated that they would look to dramatically cut subsidies for the auto sector, so Holden may be feeling extra pressure to get a deal signed sooner rather than later.

While Holden has previously been firm in its commitment to Australian manufacturing, the tone seems to have changed, with Holden indicating that further investment is a prerequisite for maintaining a manufacturing presence in the country. Holden isn’t alone either; Toyota is said to be looking for government subsidies as well, as a rapidly changing auto market and unfavorable exchange rates has left many auto makers caught flat-footed down under.

While other countries are making substantial investments in their auto sector, Australia, like Canada, has been taking cautious half measured, investing more modest amounts in conjunction with the OEMs and while adopting a “wait and see” approach. Both countries are watching their auto plants gradually fade in both importance and number, as cheaper manufacturing sites and unfavorable exchange rates and other structural factors erode whatever competitive advantages the two countries may have once had.

The nature of globalized product lines also doesn’t do any favors for Australia, which used to assemble vehicles that were locally popular, like large rear drive sedans and Ute pickups. But with the Ford Falcon gone, the Holden Commodore rumored to be moving to a global platform and consumers flocking to vehicles like the Toyota Hilux, Ford Ranger and Holden Colorado for their truck fix, Australian cars and their manufacturing sites seem to be slowly losing the battle for their lives.

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  • Big Al from Oz Big Al from Oz on Jul 18, 2013

    Here is why an auto manufacturing industry isn't viable in Australia. Read this article and see how much you earn working at McDonalds in Australia. Essentially its to expensive to subsidies our auto manufacturers. http://www.news.com.au/business/worklife/mcdonald8217s-slammed-for-budget-fail/story-e6frfm9r-1226681193539

  • Doctor olds Doctor olds on Jul 20, 2013

    If your manufacturing sector dies, what will you do for national income when the natural resources run out?

    • Big Al from Oz Big Al from Oz on Jul 23, 2013

      @doc olds I think you live in the past when manufacturing of a nation measured its success. We don't live in the 50s and 60s anymore. We have agriculture and the associated industries as well as mining and the associated industries, as well as tourism, our level of manufacturing is almost on par with the US as it represents 12% of our GDP. Australia is currently investing into what is called the NBN, the national broadband network. This will leave many nations behind in communications. This is the future as well. Developing infrastructure to allow us to be more competitive is investing wisely. Investing into union supported nowhere jobs and industry is an unwise investment. If more manufacturing was viable we would have it, just to reduce our standard of living to make us competitive unnecessarily is bad business. Our resources have over 200 years before depletion. Check out Australia reserves of mineral wealth, you'll be shocked. I'm talking economically viably extracted minerals. I recommend we wait until then to find out what to manufacture.

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