Bad news for Holden
- Thread starter 260ebenz
- Start date
BenzBoy
Grand Master
I sincerely hope Holden can do a turn-around on profits. To lose them would be a savage blow to Australian motoring and to the suppliers who keep the wheels of industry turning. Most manufacturers receive a subsidy from their government - it's just the nature of the business at the moment.
Regards,
Brian
Regards,
Brian
"Most manufacturers receive a subsidy from their government - it's just the nature of the business at the moment."
Unless you are a small business manufacturing, then you get diddly squat, and additional financial and compliance burdens added with monotonous regularity
Unless you are a small business manufacturing, then you get diddly squat, and additional financial and compliance burdens added with monotonous regularity
Last edited:
BenzBoy
Grand Master
I'm referring to global car manufacturing - nearly all are receiving subsidies (often in the form of tax concessions) because they are considered essential to a nation's defence capabilities.
Regards,
Brian
I think I know where the problem lays - in several areas, and I have certain opinions, but need to stress that I am purely an outsider looking in. Initially, there are two causes for Holden's difficulty. Firstly, the emergence of SUVs, and the perceived versatility they offer. Well, it's not perceived, it is real. Most of us know that BenzBoy drives an ML320 (?) to cart his Spitzes from go to whoa - would he consider swapping it for a Holden Commodore Station Wagon ? Most unlikely, even though the Commodore is just as likely to have an equal amount of space. It's all in the perception.
Secondly, the emergence of a number of small cars that become attractive not only from a fuel economy point of view (not justified in my opinion), and obviously price and city manoeuvrability. They perform so well nowadays, and the internal packaging is such that they give very little to the 'family' type of car. We bought a Honda Jazz (well, the better half did), and it does everything that she wants from a car at about half the price of a Commodore. Sure, I know that in some ways you really shouldn't compare and you are lacking this, that, and whatever else, but it certainly performs all functions asked of it - the Honda, that is, and probably some of the other small(ish) cars as well.
Thirdly, and I really think that is the crux of the problem. The wages and employment structure for the workers in the assembly plant. First of all, it would appear that the accepted minimum wage is $90K. per annum - I ask you, how can anyone afford this level of salary ? It is indecent. Add to that holiday loadings, length of holidays and other auxiliary Union dictated benefits and you have a 1970s recipe of union dominance. In Japan, workers are entitled to two weeks annual leave. In the States, a lot less than Australia, and I believe length of holdays are tiered to length of employment with one employer.
Last but not least, severance pay and redundancy pay. Figures in the region of $300K. have been freely mentioned, and if that is so, is it any wonder that a manufacturer is going to the wall ? How can the Company afford to carry this sort of burden ? In my opinion, subsidies in the millions already paid are used to prop up the wages system and employment conditions, and achieve little else.
In closing, I really think that Holden, and probably Ford for that matter, give very little to competitors by way of quality, but they really have no chance of competing. Yes, it will indeed be sad to see the two OZ Companies close their doors, but who cares ? The boys on the production line walk away set for life, and after that join the unemployment benefit queue. A very attractive recipe, at the expense of all other workers that are employed in the accessories industries that rely on the supply of parts to Holden. Regards Styria
Secondly, the emergence of a number of small cars that become attractive not only from a fuel economy point of view (not justified in my opinion), and obviously price and city manoeuvrability. They perform so well nowadays, and the internal packaging is such that they give very little to the 'family' type of car. We bought a Honda Jazz (well, the better half did), and it does everything that she wants from a car at about half the price of a Commodore. Sure, I know that in some ways you really shouldn't compare and you are lacking this, that, and whatever else, but it certainly performs all functions asked of it - the Honda, that is, and probably some of the other small(ish) cars as well.
Thirdly, and I really think that is the crux of the problem. The wages and employment structure for the workers in the assembly plant. First of all, it would appear that the accepted minimum wage is $90K. per annum - I ask you, how can anyone afford this level of salary ? It is indecent. Add to that holiday loadings, length of holidays and other auxiliary Union dictated benefits and you have a 1970s recipe of union dominance. In Japan, workers are entitled to two weeks annual leave. In the States, a lot less than Australia, and I believe length of holdays are tiered to length of employment with one employer.
Last but not least, severance pay and redundancy pay. Figures in the region of $300K. have been freely mentioned, and if that is so, is it any wonder that a manufacturer is going to the wall ? How can the Company afford to carry this sort of burden ? In my opinion, subsidies in the millions already paid are used to prop up the wages system and employment conditions, and achieve little else.
In closing, I really think that Holden, and probably Ford for that matter, give very little to competitors by way of quality, but they really have no chance of competing. Yes, it will indeed be sad to see the two OZ Companies close their doors, but who cares ? The boys on the production line walk away set for life, and after that join the unemployment benefit queue. A very attractive recipe, at the expense of all other workers that are employed in the accessories industries that rely on the supply of parts to Holden. Regards Styria
Patrick_R
Grand Master
You guys nailed this with fantastic foresight back in 2013.
Four full years before the closure of the plant at Elizabeth.
Styria’s last comments back then were absolutely spot on.
The workers and their unions were instrumental in their own downfall.
RIP Holden.
Now, how can I buy that mint FB back from the gent I sold it to?
Four full years before the closure of the plant at Elizabeth.
Styria’s last comments back then were absolutely spot on.
The workers and their unions were instrumental in their own downfall.
RIP Holden.
Now, how can I buy that mint FB back from the gent I sold it to?
sean sherry
Master
Never a truer word from Styria........ I also remember the outcry about the Shoe Manufacturing Industry..... The figure I recall was an annual $32,000 subsidy for every worker ! No one subtised my Automatic Shop when the work dried up for over hauls of the ancient B.W. 35s and the Trimatics. Closed after 50 years from 1957 on. The Business Cycle....
P.S. don't forget the Poor Blacksmiths .. all those horseless carriages put them out of Business !!
P.S. don't forget the Poor Blacksmiths .. all those horseless carriages put them out of Business !!
The Gov could've supported some to the workers entitlements, or they should've been forced to fund things themselves in the form of wage deductions not unlike Super.
I was a strong advocate for both Ford Australia and Holden exporting far more vehicles but it may be they faced an uphill battle with their parent companies?
Another Benz enthusiast made a comment to me recently with regard to the collapsing high-end restaurants; complain about your wages and now you have no job!! And not because you got the sack for highlighting the issue, but because the company couldn't afford it and went bust!!
When will everyone realize that it's not realistic that the cost of everything must go up each year??? How is it growth if wages and expenses continue to rise when other countries are stable?? How can we compete in a global economy with our current business model?
There needs to be a balance between caring for the environment and supporting industry. If we cannot make progress in this area we are doomed and will likely become a province or China or India.....
I was a strong advocate for both Ford Australia and Holden exporting far more vehicles but it may be they faced an uphill battle with their parent companies?
Another Benz enthusiast made a comment to me recently with regard to the collapsing high-end restaurants; complain about your wages and now you have no job!! And not because you got the sack for highlighting the issue, but because the company couldn't afford it and went bust!!
When will everyone realize that it's not realistic that the cost of everything must go up each year??? How is it growth if wages and expenses continue to rise when other countries are stable?? How can we compete in a global economy with our current business model?
There needs to be a balance between caring for the environment and supporting industry. If we cannot make progress in this area we are doomed and will likely become a province or China or India.....
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