Holden 'to close Australian operations in 2017'

[[Shuz]]

I already thought we shared our defence force with New Zealand?

Um, I case you're being serious, no.

http://en.wikipedia.org/wiki/ANZUS
http://en.wikipedia.org/wiki/Australia_ ... _relations

Cheers for that. Quite fascinating reading, actually.

[rev]

ANZUS is a treaty which binds us to the USA and NZ, and to assist them militarily and them us.
It does not mean we share our defence force with NZ.

We don't share our tanks with them for example, and let them use them for their purposes.

[[Shuz]]

Yeah, obviously. I worded what I meant wrongly. It's a bit of a silly notion that any country would 'loan' their military equipment for another to use when they needed it. But like, when we have gone to war overseas together, in Vietnam, Korea, Afghanistan, etc. We would have shared the same resources and things, so they would probably drive our tanks and we use some of their communications equipment and stuff like that.

[PeFe]

From news.com.au

Private consortium mounts bid to take over Holden's Elizabeth plant in South Australia

A private consortium of investors is in talks with General Motors over the future of the Holden manufacturing plant at Elizabeth. Source: News Limited


AN AUSTRALIAN-based consortium is mounting a bid to take over Holden's soon-to-be-vacated Elizabeth plant and continue making cars beyond 2017.

Ethan managing director Ashley Fenn said he and a group of fellow businessmen were in talks with General Motors about buying the plant.

He said the talks also involved the possibility of possibly gaining access to the company's brand and intellectual property.

Last month, Holden corporate affairs executive director George Svigos ruled out the company selling its name and said it was "completely committed to the Holden brand and intends to sell Holden cars for many years to come".

It followed comments from Premier Jay Weatherill that "a particular car manufacturer might want to set up here but use the equity that's in the Holden brand to continue making cars".

Mr Fenn told The Advertiser said talks with General Motors, Holden's Detroit-based parent company, had been "extremely positive".

He also said the consortium was willing to work with other car makers to save thousands of jobs at the plant and in component companies. The state and federal governments as well as unions have been briefed on the plan, he said.

Mr Fenn said unnamed equity partners were already prepared to offer $750 million.

Manufacturing, Innovation and Trade Minister Tom Kenyon last night confirmed the State Government was in talks with the group and treating the bid seriously.

"They're doing work, talking seriously to GM and, if they're successful down the track, then that would be a good result for South Australia," Mr Kenyon said.

"They're not to be dismissed. Their goal is to manufacture vehicles in SA."

He confirmed the State Government was in similar talks with other companies but declined to name them. Mr Kenyon would not comment if extra taxpayer support was being considered.

Mr Fenn is also the Victorian state director of the Family First Party, on the party's federal executive and was a Senate candidate at last year's federal election.

Mr Fenn said he and other consortium members began working six months ago on plans to develop a "sustainable business model" for Australia car manufacturing.

That was soon after Ford's announcement it was ending domestic automotive manufacturing and while it was also clear then that the "writing was on the wall" for Holden, he said.

Mr Fenn said his consortium has engaged former executives from GM and Mitsubishi and was in discussions with financiers to raise capital.

"We really go into industries and companies and do turn arounds," Mr Fenn said. "What we've been able to do is collect some of Australia's best thinkers in this field.

"We've also been talking with financiers and capital partners. Our ultimate intent is to continue to manufacture cars in South Australia."

"Depending on what assets we might buy from whatever company, we'd look to put a business plan together, do a deal and then look to either take over or restructure".

Mr Fenn is also the operator of a not-for-profit housing development business, Ethan Housing.

He said the consortium was confident that the global car industry was positioned for growth and that an Australian company focused on both exports and domestic supply could be profitable.

Mr Fenn said negotiations with Holden and other companies had "months to go".

He said it was possible the consortium could "start from scratch" to develop a completely new car model and brand if it could not win agreement from an established car maker.

"We don't know whether we're buying just a plant, whether we're buying a plant with the platform and the name or it's a walk-in-walk-out-type scenario on the business," Mr Fenn said.

Mr Fenn said it was possible to profitably build cars in Australia.

"Obviously the currency has been very high," he said. "That hurts Australian manufacturing.

"We don't believe the currency is going to stay as high as it has been.

"On the other side is, there has always been a struggle between the companies and workforce.

"Having our interest here, in Australia, rather than the US, will make a very big difference."

Mr Fenn said the consortium did not intend to seek subsidies above what is already in state and federal Budgets and was not factoring in an assistance beyond 2020.

"We understand taxpayers are not going to want to subsidise an industry that's not going to be self-sufficient," he said.

Mr Kenyon said he would work with the consortium to progress its bid.

"GM is taking them seriously and I wouldn't want to be so sceptical that I missed an opportunity. "I'm happy to work with them to try and progress it," he said.

"There is a large amount of capital involved and the proof will be in the pudding of course.

"If they're able to keep manufacturing cars in South Australia, that's success."

http://www.news.com.au/national/south-a ... 6821061430

[Waewick]

Great news of true

[rev]

Indeed good news, if it eventuates.
If Abbott and Weatherill actually give a toss about saving jobs, they'll pull out all the stops to help make this happen.

Even better if this consortium can get hold of the Holden brand and all that comes with it.

[The Scooter Guy]

It's sad Holden's closing. But if a business is not profitable then it must close. If the government props it up, that doesn't really make it a viable business UNLESS the government support is only required as a solution to short term cash-flow problems. Then it might be worth consideration.

In Holdens case I believe they had much more long term problems, and have had numerous years of very generous government support, yet they were still not able to make a profit. Well, sorry, but that's not a viable business and as a taxpayer I'm not willing to support unviable businesses.

And without Ford & GMH, auto sales will be slumping! Australia's economy will soon be deeply depressed!
The real estate market will crumble, unemployment will go crazy and the crime rate will skyrocket up to apocalyptic proportions!

[rev]

Crime wont skyrocket. I don't think we need to worry too much about that becoming an issue. Most people who work in factories aren't lazy criminals, they are hard workers.
Most of them who are able to get a job and not too old, will look for work and do their utmost to find work.

Car sales might take a hit.
But I think in reality, people who dont look at a new Ford or Holden, will look at an import.
I don't think that it will result in people not buying new cars overall.

[Waewick]

I hope either party had a good economic plan. It is starting to feel like Adelaide is just going to be slowly demolished

[rev]

Well it's official, Australias car industry is gone as of 2017.
Toyota has announced it is closing production in Australia in 2017.

Another 2,500 jobs gone.

[The Scooter Guy]

Well it's official, Australias car industry is gone as of 2017.
Toyota has announced it is closing production in Australia in 2017.
Another 2,500 jobs gone.

[Will]

So there is no money to keep building cars in Australia, and yet there is $100 million to investigate alleged corruption in the union movement.....

[Waewick]

100m won't save car production but it can still improve productivity I guess.

[rev]

It's not about corruption it's about finishing Howard's job against the Union movement. Corruption investigation is just the "official" excuse.

Corruption exists beyond the Unions, why aren't they investigating anyone else besides those involved in Unions?

[Waewick]

It's not about corruption it's about finishing Howard's job against the Union movement. Corruption investigation is just the "official" excuse.

Corruption exists beyond the Unions, why aren't they investigating anyone else besides those involved in Unions?

big obvious target?