Holden to make "important announcement" about its VIC and SA operations

[stevz]

Originally Posted by Wretched

People woke up and discovered better cars in the Focus the Mazda 3 and to a point even the Corolla.

Several reviews have touted the MY14 Cruze update as best in class in terms of drivetrain and handling so hopefully those perceptions are about to change.

[jpd80]

Originally Posted by mik

The platform is not the problem, if they did`nt believe they could make a buck out of building the cheap focus here( a global car) what chance does anything else have?

It's not that they couldn't make a buck out of Focus in Australia, the case for making the car in Thailand was much better
even though the joint has the propensity to flood at the drop of a hat....

[Insidious]

The point of this is that all car component company's here will lose, as they just can't compete with the cheaper components...its' all about the Aussie $

[Insidious]

Here is a true example...A component cost $100 to make here...but in Nth America it can be produced for $50..So for that car company it would be better for them to source that component from NA

[mik]

Originally Posted by Insidious

Here is a true example...A component cost $100 to make here...but in Nth America it can be produced for $50..So for that car company it would be better for them to source that component from NA

Or anywhere else but australia.

[jpd80]

A bit of meat for discussion:

Originally Posted in another forum
Devereux was asked by Toby Hagon at the Cruze series II launch what % of Cruze was made in Australia and he said 30%.

That's a binding statement, because he knew it was to be published - trade practices, deceptive statements etc. Hagon said - isn't that a bit poor, only 30%. Devereux said, it's better than zero % previously. It's 30% more than before. $500M of expenditure a lot of which is spent in Australia even if not all. Even given that a lot of tooling came from O/S there were still dozens of machine fixtures that had to be created - so local engineering got a look in as well for fabrication, maintenance and consumables. Local content on Cruze is all panels above chassis, all interior, all glass, plastics including trim and seats, carpets except some console,, sound-deadening (recycled, startup) dash surrounds. Brackets , exhaust. I believe but can't confirm callipers, discs, radiator and ancilliary components. LPG Commodore - new local industry, patents, licenced manufacture of new vapour injection LPGi module, plus extruded alloy tank from a new to auto industry supplier. Not just a cheap imported LPG tank.

Even if the plastic and steel is 100% imported - first year 20,000+ Cruzes @ average wholesale of $15,000 each - conservative -or $5,000 Australian content. You do the math on what that's worth to the Australian economy and workforce. And of course, if it is made here there is always the potential for Bluescope or whoever to supply in future.
Fully imported? Almost none.

Look at Aon castings (sp?). They were locked in to supplying V6 Commodore castings - they over-extended themselves picking up an automatic trans supplier with no customers at the wrong time. Cost Holden and Ford their alloy castings source. Holden and Ford tried to pick up the pieces, couldn't. It has cost both of them and the business was lost to Australia, That no doubt affected bottomline of Holden's previously lucrative engine business.

So local suppliers aren't blameless victims in every circumstance. Holden part funded the Cruze hatch supplier to make convex glass pressings with demister elements new tech to Australia - they didn't have to do that, could have just brought in korean bits. That's only dozens of jobs but it's still something and a capability that will last. Same with hatch hinges. Same thing with the VF boot hinges. They are a work of mechanical art.

In some instances the suppliers are the victim of the fallling market and inability to expand their business ad find external customers. Holden and Ford couldn't for instance keep using 6 volt valve mono AM radios just because AWA were the only supplier for instance. Not when the competition is offering colour, touchscreen GPS-enabled infotainment systems. That's an exaggeration, but you see what I mean. And when Australia is already under the pump for costs and $500 could lose them a Cruze sale they can't just pump 20% extra in costs in and expect to be competitive on price.

In your business, do you use imported components? I bet you can't get everything you need manufactured here, even if you wanted to and were prepared to pay a premium.

[eb2fairmont]

I think thats and excellent argument and a good story to get out in discussion. It highlights how its not just slapping together a car and 400 jobs, but rather an entire capability that this country currently has the ability to do.

[jpblue1000]

As I said earlier 2/3 of exporters are actually also importers the Australian dollar being high makes 70 percent of the cruze cheaper to import allowing a more competitive marketing edge.

JP

[Nikked]

Cruzes @ average wholesale of $15,000 each

Whats this figure, Is it the cost to build Cruze?

[Franco Cozzo]

I have a feeling that the next big announcement will be that Ford makes everyone redundant in 2016, but replaces them with already skilled people from a labour hire company.

To remove the union presence and cut down wage costs.

[Bossxr8]

They have already done that with security, medical, emergency response people etc.

But highly unlikely to take it any further than that.

[Resurrection]

Originally Posted by Big Damo

I have a feeling that the next big announcement will be that Ford makes everyone redundant in 2016, and replaces the Falcon with a model imported from Thailand.

Fixed it for you.

[SB076]

Originally Posted by BroadyFord

Honestly, what are the advantages of a high AUD apart from cheap overseas holidays and LCD TVs?

Think about it; the AUD isn't only destroying manufacturing - it's having an impact on just about EVERY sector in the Australian economy. Indeed, when the AUD is at this level:

1. We can't make anything
2. We can't attract tourists
3. We can't retain volume in the services industry
4. We can't attract major events
5. We can't convince Australians to travel in their own backyard instead of overseas- again, damaging tourism
6. There's less government revenue meaning there's less money for things like important infrastructure, health etc., forcing governments to raise taxes

It's a very worrying situation and indeed, I can't see it ending anytime soon bar some unforeseen financial meltdown.

If people recall, despite the GFC, our manufacturing industry performed far better in 2009-10 than is the case now, primarily because the AUD was in the 60c-70c range.

When it started to rocket at the end of 2010 I knew we would inevitably see what we are seeing now.

I can fully understand what Holden et al are going through despite all the commentary.

I work in manufacturing and would much prefer to see a lower dollar than what we currently have. My post previous was to correct a comment by someone else that stated that if the dollar dropped to $0.50 USD than all our costs would double which is incorrect.

[jpd80]

Edit,

never mind...

[Gobes32]

Originally Posted by Big Damo

I have a feeling that the next big announcement will be that Ford makes everyone redundant in 2016, but replaces them with already skilled people from a labour hire company.

To remove the union presence and cut down wage costs.

I would imagine it to be a pointless exercise. Average wage of 50k for automotive worker, good luck "paying" a labour hire company to provide a worker for less than that amount. Also, I think you underestimate how complicated stamping panels is for an example. There is more to it than push the button and pull the choke. You are going down the right path in terms of outsourcing, but we will not be doing it here in oz.

[Jason[98.EL]]

Originally Posted by Gobes32

I would imagine it to be a pointless exercise. Average wage of 50k for automotive worker, good luck "paying" a labour hire company to provide a worker for less than that amount. Also, I think you underestimate how complicated stamping panels is for an example. There is more to it than push the button and pull the choke. You are going down the right path in terms of outsourcing, but we will not be doing it here in oz.

they did that where I currently work

in mid 08 or early 09 they shut the factory ( blamed the g.f.c but it was union issues really ) sacked 180 people only to re open it in 2010.

No full time staff all are casual through a labor agency and we put out the same amount of product with about 70 staff.

So it is possible for them to do it oh and our average wage is about 65 g p/a

on a side note the company I work for are 99% exporters to the paper industry in asia ( in us dollars ) so a lower aus $$$ would help us out with the exporting we would like to see about 80-90 c mark

[mik]

Originally Posted by Jason[98.EL]

they did that where I currently work

in mid 08 or early 09 they shut the factory ( blamed the g.f.c but it was union issues really ) sacked 180 people only to re open it in 2010.

No full time staff all are casual through a labor agency and we put out the same amount of product with about 70 staff.

So it is possible for them to do it oh and our average wage is about 65 g p/a

on a side note the company I work for are 99% exporters to the paper industry in asia ( in us dollars ) so a lower aus $$$ would help us out with the exporting we would like to see about 80-90 c mark

And is'nt that a sad by product of modern times, once upon a time it was'nt to hard to secure full time employment that would last you for years, possibly decades, it is a luxury to have that sort of job security these days.
Edit: I would hate to be an unskilled young buk just starting out these days .