Holden Might Pull Out Of Australia Within Three Years

First Ford, next Holden? The Commodore-manufacturer could pull out of Australian manufacturing within three years according to a new report.

Holden has once again gone cap-in-hand to the Federal Government for more funding, grants and pledges to offset the high-cost of doing business in the land Down Under.

One source told The Australian that Holden will ask for an additional $265 million in funding. That's on top of the $275 million already pledged. Goodness.

If Holden pulls out of the country, what then for our local car industry?

[Business Insider Australia]




    We need to end corporate welfare and let these dinosaur companies die. If they can't adapt then they should be allowed to fail. Propping them up like this just delays the inevitable and changes nothing.

    Last edited 11/07/13 2:31 pm

      Yeah why should we support around 350,000 jobs in our country. The auto industry was doing just fine until the government got rid of the import tariffs to try and suck up to the rest of the world and now we are here. If Holden goes so will Toyota because the parts manufacturers simply can't afford to produce for only one franchise. Instead we will send all our R & D and skilled workers overseas and just keep digging holes in WA. Great idea for a long term plan. While we're at it we should sell Telecom and Qantas to overseas too.... oh already did that did we.

      Here's a video explaining why we might want to think about saving our Auto industry. However I doubt we will. Once it's gone though it's gone!


        this will create jobs. someone is going to have to peel off all the holden stickers from the unsold cars and put either daewoo or chevy stickers back on them. the same thing is happening to all manufacturing in this country. why should the auto industry be any different. holden got all that money from the government and what did they do? they spent it making another commodore. no holden, we said we don't want to drive falcodores any more.

        The auto industry was doing just fine until the government got rid of the import tariffs to try and suck up to the rest of the world and now we are here.

        It's also due in no small part to what happened with the GFC and the high Australian dollar. It suddenly became much more expensive to produce cars here, and it became much more expensive for overseas buyers to buy Australian made cars. Our increased cost of living as a result is to blame too, with Australian workers demanding more money then overseas workers doing the same job. The high Australian dollar really killed MANY businesses that relied on exporting or money coming in from overseas some other way, and the auto industry was one of those. Another example is the local video game development industry. How many of our major studios have closed up shop over the past 3-5 years? Too many to count. Even farmers are suffering because overseas countries are not buying Australian produce as much.

        The high Australian dollar has really killed a lot of industries here. Having said that, I do agree with what nef_d said. The company has already received an absurd amount of money from the government and now they are asking for more. If this was any other industry they would have already died. They need to change tactics and start thinking of ways to stand alone on their own two feet and stop relying on government handouts. I can think of a lot of places where that total $540 million (more than half a billion) would have been better spent...Hospitals, Schools, Public Transport, Roads, Public Housing, NBN...

        Last edited 11/07/13 3:30 pm

          Of course, the high dollar is just a temporary thing, as we are seeing currently, which makes it even more important for the government to provide increased assistance to the industry until things return to normal. Holden and Toyota understand this and I'm sure the government does, too.

            And how long will it be before things "return to normal", exactly? Another 5 years? 10 years? How long does the public need to keep paying to keep a company afloat that's refusing to change their procedures and "get with the times"?

            And what actually IS "normal" anyway? Is it the 70ish cents it was sitting at before the GFC thing hit? Or is it the 90ish cents it's sitting at now? In fact the Australian dollar has been pretty much on parity with the US for so long now that maybe you could consider THAT normal, and the current value is a temporary slump.

            Just look at the absurd amount of money Holden has already received from the government recently, and now they want almost that same amount again. When will it end? It's got to stop. If that $540 million was invested into our Hospitals and Health Care, instead of trying to keep an ailing car manufacturer in business, how much better off do you think we'll be now?

            Last edited 12/07/13 9:38 am

              Are you serious? Do you not read the papers? The dollar has lost almost 15% of it's value in a matter of weeks, it's not going to be anywhere near 5 years until it returns to historical levels. It seems that 75c by year's end is not out of the question, which is why I am buying a new car this week.

              "Normal" is the long term average, which is around US 75c to the dollar. I would imagine that where it is now, which is about half-way there from where it was 6 months ago, is providing a good amount of relief for local suppliers. Because you have to realise that we are not just talking about Holden and Toyota. In fact, they don't care one way or another as they can source components from overseas if local businesses are uncompetitive. Holden do it already with things like window glass, which is imported from China. Those with the most to lose, and the least power to do anything about it, are the hundreds of Australian owned companies providing components, who employ tens of thousands of Australians and can only survive and prosper if the big, overseas owned companies continue to build cars here.

              Holden has received bugger-all from the government without putting up a lot more of their own money. Almost all the money they receive is in the form of co-investment, so for every dollar you want to complain about, GM Asia Pacific has invested another $3 that would otherwise have gone to China or Thailand. You cannot seriously suggest that we'd be better off as a nation if the world's biggest companies invested their money in other countries, instead of investing in knowledge, skills, infrastructure and jobs here in Australia?

              GM has invested more than $1billion here in recent years. That is a really good thing, not just for the reasons I outlined but because it is a big investment that they will not want to walk away from until they have seen a good return on it. i.e. The more money we get them to invest here, the more invested they become in the future of our industry.

              As for the figure mentioned here, it is pure speculation based on no concrete evidence at all. Discussions have been confidential and no-one has quoted any sources, they've just invented a number that suits their agenda. But even if it is another quarter-of-a-billion, the government will get that back tenfold in income tax, company tax and the general benefits of the $5billion the industry contributes in general economic activity each year. And that's the other thing, the alternative to having a viable car industry, employing up to 120,000 tax-paying workers, is to have those 120,000 workers on the dole. We've already seen how much Ford's closure is going to cost tax-payers, with the government committing around $30million to help the 1200 workers who will lose their jobs at Ford. If the whole things goes, that figure will increase a hundredfold to $3billion or so. That makes $265million look like a bit of a bargain, doesn't it?

        If holden (and ford) were making cars people wanted to buy we wouldn't even be having this conversation. Their failure to deliver good products and sales was counterbalanced with government handouts. Instead of making the changes to increase their sales they did nothing and just kept asking for more money. The company is broken. Instead of blaming the government (or the rest of australia) for the problem the workers should be blaming their own company and shareholders that allow these CEO and management to be terrible at their job.

          ...but taxi owners buy them! What are we going to do when there are no taxis?

          It's not that simple. Holden, for example, need to sell five Cruzes to make as much money as they get from one Commodore, because the manufacturing costs are almost the same. They are built on the same assembly line and are equally complex machines. That means to make as much money as they do currently from Commodore they would need to sell almost twice as many Cruzes as the best selling car in the country, currently the Toyota Corolla. That's another example - Toyota has always sold more Corollas than Camrys but they stopped building Corollas here in the 1990s because they simply couldn't do it profitably. which means high value cars like Commodore, Falcon and Territory are the only options for a high cost country like Australia.

          Far from "doing nothing", Holden have improved Commodore in the last 6 or so years more than any other car in the world. e.g. When the VE was released in 2006, ADR fuel consumption was 10.7 l/100km but by the time they got to last year's update, that figure was down to 8.9. VF has pulled it down further to 8.3, which is as good as an automatic Mazda3. VE went from 4 star crash safety to 5 star, got a completely redesigned interior a couple of years ago, had new engines added to the line-up and has been made to run on more fuels than any other car on the market - petrol, LPG or E85.

          Holden and Ford have both responded to changing consumer needs and both build vehicles - Territory and Cruze - that compete in the largest and/or fastest growing market segments. More to the point, those locally made vehicles are head and shoulders better suited to Australian conditions than any imported car. Just read any review of the recently upgraded MY14 Cruze or new VF Commodore to see what I mean.

          The real problem is customers who, by and large, have absolutely no idea what they are buying and take no interest at all in what is the second biggest purchase in most people's lives. The amount of misinformation and complete BS that goes on around cars makes this place look like a bastion of knowledge and reason.

          Last edited 12/07/13 11:41 am

            It's not that simple. Holden, for example, need to sell five Cruzes to make as much money as they get from one Commodore, because the manufacturing costs are almost the same. They are built on the same assembly line and are equally complex machines.

            Then I'd say there is clearly something wrong with the process and something needs to change in that regard.

            If you look at almost any other product, the cheaper alternatives the company provide are also cheaper to manufacture...be it from using cheaper parts, or using a different manufacturing process, or deliberately leaving out features that the more expensive models have, or some other way. A car like the Cruze, which costs almost half the price of a Commodore, SHOULD have an equivalently different manufacturing cost. If it doesn't, then something is clearly wrong and needs to be fixed.

              Why? You, like so many sheep, assume that the price you pay for something is a reflection of the cost of making it. That is almost never the case. Do you think it costs Apple three times as much to make an iPhone as it costs HTC to make an 8X? Tear them down and you'd see they would cost exactly the same to make. Do you think it costs BMW three times as much to build a 5 Series as it costs Holden to build a Commodore? Again, of course not. In fact, BMW stopped using aluminium body panels to keep costs down where Holden have just started using them and still managed to reduce prices. It's all about what the market will bear. So it's likely it costs Holden more to build a Commodore than BMW a 5 Series, especially when you take economies of scale into account.
              A car like the Cruze, which costs almost half the price of a Commodore, SHOULD have an equivalently different manufacturing cost. If it doesn't, then something is clearly wrong and needs to be fixed.
              Cars are not flatscreen TVs. What you get if you apply your logic is a Chery J3, not a Cruze. Cars must be engineered to meet stringent guidelines (ADRs) and are submitted to testing that no other product you buy is. Nobody ever died because they dropped their phone and the screen cracked, so if the lower end model doesn't have Gorilla Glass, it will still sell OK. OTOH, if you use cheap steel in a car to save money, there will be deaths as a result so you just can't do it. In fact, if anything, a smaller car must be engineered much better than a larger one but no-one is going to pay more money for a smaller car (unless it is wearing a prestige badge, of course).

            Calling the customer 'the real problem' is borderline delusional! Most entities that want to be profitable and want to survive actually listen to their customers! I'd be very surprised if the Holden executive and government providers would support your view..

        Or Maybe because Holden is inferior when comparing it to world class manufacturers like Toyota ect...

          Clearly that is not the case, just compare the new Corolla to the current Cruze. Corolla uses the same engine it did two generations ago (since 2000 or so) and there is just the one choice, where Cruze has four different engines to choose from, all of which offer more power and torque. Cruze is roomier and more fuel efficient, it handles better, rides better, is more refined (quieter) and offers a lot more standard equipment at every price point. Cruze comes with different chassis tunes for different models so that when you buy a sports model, you actually get a car that is faster and handles better, instead of just a sports badge and a few stripes. The one and only area where I'd say Corolla has an advantage is in its styling, in every other way it is measurably inferior, yet it sells roughly 50% better because of the general ignorance of the buying public.

          To make global comparisons, all you need to do is compare the Australian Cruze to the Cruze sold overseas. Our Cruze is the best handling, best riding and most refined of all of them, thanks to local chassis tuning. We have more engine choices than in any other market, too, which makes the Australian version of GM's world car the best by a country mile.

        Any industry in Australia should be able to support itself without the need of government intervention. If Holden needs subsiding to stay alive, it should collapse then. The people who lose their job will need to be retrained and enter more efficient industries. In the long run, it will lead to a more prosperous economy. People need to realise its not the government responsibilty so we survive, it our responsility.

        Crap! The car industry may have been doing fine behind tariff walls but the buyers were NOT! When the tariff walls started to come down we got better cars at better prices. Ford and to a less extent just did not get it; hardly anyone in Australia wanted Falcons and Commodores because they are dinosaurs.

        The closure of GMH would not mean the end of 350,000 jobs because the cars we have bought and will continue to buy will still need sales people, technicians, mechanics and all the human jobs that go with cars. And maybe we can get rid of the last of the tariff, leading to even lower car prices.

        Neither Telstra nor Qantas are foreign owned because both are protected by legislation from majority overseas ownership.

        Subsidising business is A L W A Y S a really bad idea!

          So why does every country on Earth do it? What do you know that they don't?

      Name me an automotive manufacturer that doesn't take handouts...

      It does change something actually - it diverts scarce government resources away from areas where they might be better applied, and it diverts labour away from more efficient industry which then face higher labour costs. Not to mention the accompanying taxes designed to protect this arrangement which have shielded the industry from competition, nurtured inefficiency, and force all Australians to pay higher prices for more cheaply produced and often better quality foreign-made cars.

        That depends on what they divert the money to. There are thousands of people employed by Holden in Adelaide, both directly and also indirectly and the various component manufacturers. There are also some component manufacturers in Melbourne, I believe. So by all means take out the $250m or whatever it is and let them shut down, but only if you're going to use that $250m to create MORE jobs. No point doing it if you end up with just the same number of jobs or fewer. And they need to be in the same region - it's not much use ripping 5-6,000 jobs out of manufacturing in Adelaide (keeping in mind the size of Adelaide relative to Sydney or Melbourne - 5,000 jobs is a LOT) and Melbourne and then going and pouring it into creating jobs in western Sydney. But that's probably what they'd do because that's all the major parties care about these days because that's where most of the marginal seats are.

      So tell me, nef_d, what do you know about running a country that no government on Earth does? because every other government does far, far more to help their car industry than our government does to help ours. We have the lowest import tariff of any car making country in the world and the level of assistance provided to the industry is minscule compared to what many foreign manufacturers are offered.

      So if what you want is for the local car industry to compete on a level playing field, then you should be in favour of higher import tariffs and more direct support. Unless, as I asked, you know something the rest of the world doesn't.

        perhaps if they spent all those tax dollars on a car that australians want, people wouldn't be so cynical. the market trend is clearly small cars and SUVs. holden instead brought in daewoos to fulfill those markets so that fanboys like you could still support aussie. were you this passionate about daewoos when they were in this country? it's just misplaced patriotism. car companies shouldn't be bailed out by the govt just because they exist. if gm doesn't allow holden the freedom to build what the market requires then maybe holden should just pack up. invest the money in supporting our farmers instead.

          You do understand that both of Holden's locally made cars were Top 5 sellers last year, don't you? If that's not building cars Australians want, could you kindly explain what is? Read my other comments and you'll understand why Holden have to build a large car, just as Toyota build Camry and Aurion even though those two combined sell less than Hi-Lux or Corolla. I'm absolutely certain GM would prefer Holden made the same cars that everyone else does, allowing them enough freedom to make Commodore has cost them a fortune.

          Of course, both Holden and Ford have shown they understand exactly that small cars and SUVs are the future, that's why Ford make Territory and Holden make Cruze here.

          And for the record, every car Holden has sourced from Korea has outsold the Euro-sourced model it replaced so again, Holden are selling the cars Australians actually want. Cruze, for example, sells twice as well as Astra ever did and even the woeful Epica sold as well as the Vectra it replaced. And Captiva was the biggest selling SUV in the country last month and always finishes in the top 3 for the year.

            yet gm couldn't sell any cars labeled daewoo. people buy them because of the brand power of an aussie holden. were you as passionate about daewoos when they were here? all they did is swap the badges. it's an amazing display of brand loyalty. i mean the holden spark is a daewoo matiz ffs. I'd love for the aussie government to invest in a new manufacturer that built a quality product. holden is a horrible brand synonymous with cheap and poor quality pushing overseas interests. Incidentally, a $44,000 commodore in the states (the chevy ss) built here, designed here and funded with grants from aussie tax payers and shipped to america and we have to pay over a 1/4 more for the same car. get f'd holden.

              Holden never tried to sell any cars labelled Daewoo. Why would they? I'm not in any way passionate about Holden - the Barina and Barina Spark are terrible cars, easily worst in class, but I'm not completely irrational, either, so when I read 10 out of 10 reviews that told me the latest, Australian built Holden Cruze is as good as any of it's competitors, and better than most, I'd have to be a complete idiot not to take it at face value.

              I actually tried to take one for a test drive this week, as I am in the process of buying a new car, but there was not a single 1.6 turbo manual car in Sydney so I've had to cross it off my list. Instead, having driven a Polo and a new i30, I'll be trading in my BMW on a Kia Rio.

              But you are absolutely right about the power of brands. My BMW is a 1997 318ti, a car made from parts of the E36 sedan and the previous E30, to make a cheap, entry-level machine (pre 1 Series). I got it cheap about 18 months ago when I'd been out of work for 6 months. To me it has only ever been a 16 (now 17) year old car but it has amazed me to see that all anyone else ever sees is a BMW. It's got bits falling off it, there is a hole in one of the headlights, chips all over the windscreen and scuff marks all over the bodywork but it seems I am the only one who sees any of that. Everyone around here and everyone at work is gobsmacked that I'd trade it in on a Kia, even though they all know that half the time the damned thing won't even start. The bottom line for me, though, is that the Kia is better in every way than the BMW was when it was brand new and that is all I care about. It's faster, it handles better, it is quieter, it rides better, it will use half as much petrol and it has more kit than you can imagine for $21,000. That it wears a Kia badge means absolutely nothing to me, it's only what's under that badge that counts.

                Hey MM, I can see that you are passionate about your cars and know what is workign in this market and what isn't. Can I reccommend you hold off on the Kia. I purchased my SRi MY14 Cruze a couple months back and I absolutly love it! Try and get a test drive in one because I guarantee you will rate it far more than the kia. Yes I haven't driven a Kia but looking at reviews, the Cruze will offer you so much more. Can I reccommend that you test a auto. The new transmission they have put in this car is amazing. It always knows what gear I want wheather I'm taking it easy or pushing it through the hills. Yes it does have sports mode where you can manually shift through the gears, but to be honest the transmission does a better job of it than I do.

    Ford and Holden have used Australia as a cost centre for far too long. Their sole purpose is to offset the design and development costs, paid for by Australians, while all profit is syphoned back off the the USA. The sooner they go, the better we will all be. The Aus government should spend the money to entice companies such as Tesla to manufacture low volume high quality vehicles. There are also other low volume Australian grown manufacturers that are more deserving of Australian tax dollars than Holden or Ford.

    let them go! 99% profit goes OS anyway. so long as the gov puts some money into helping with re-training and assistance.

      This isn't just about Holden, Ford or Toyota. It's about the various other manufacturers producing parts, accessories and other components for the vehicles.

      With Ford now leaving, it appears as though the media have set their sights on a new manufacturer (see: Mitsubishi once Nissan left, Ford once Mitsubishi left)

    I'm sure they'll just offshore which the govt has no problem with in other industries. Keep management in aus and send all the work overseas, just like IT!

    Unfortunately what you guys don't realise with stupid comments like that, is that it's not just the 10,000 Holden employees that will be out of work, it's the 50,000+ employees of supporting companies that will be as well. Everything from parts suppliers, to local communities around the plants that will all evaporate.
    The reason the government prop these guys up is because our (somewhat hopeless) car industry is the only major manufacturing industry in Australia.
    The reason Ford folded first is because they have no export value from Australia, whereas Holden do.

    Last edited 11/07/13 2:48 pm

    They only assemble the cars here anyway, most of the parts are shipped here from South Korea in "flat packs". They've been too unwilling to adapt to the way business is done in today's economy.

    In the end, General Motors' head office is in America and couldn't care any less that Australians will be losing jobs, if they saw it as profitable they'd just make the Holden line in one of their overseas manufacturing plants.

    First Daiwoo goes bust in Australia ... then GM rebadges all the Daiwoos as Holdens and sells a crap load more of them because now Daiwoo is Aussie. So Daiwoo are going bust in this country for a second time in just several years.

    That $265m could be spent building up other industries to help lessen the impact when Holden inevitably shut down their Australian presence. We've all seen it many times before, a large, profitable multinational company gets grants/tax relief/etc. in order to set up or stay running in a particular location. They then milk that facility for all its worth, shut it down, then repeat the process again somewhere else. You can bet that when GM shut down the Australian factories they'll be telling the government of some low wage country that they'll build a factory there if they cough up some "grants" (aka bribes).

    I say give them the money. I don't believe there is any car manufacturer in the world that doesn't operate without some sort of government funding.

      I call BS on that. No doubt there are quite a few that do, but def not all of them.
      Either way, how does the fact that others receive funding make it the right solution to keep Holden afloat??? All those years are Australias number 1 car seller (for the Commodore) and they still need additional funding... doesn't this tell you that they are obviously doing something wrong.

        US examples - Ford, GM, Honda, BMW, VW, Mercedes Benz. They've all received "incentives", either through huge tax rebates or large "investments" by state governments as a means of attracting the development of new facilities within various states, especially to the south of the US. It's not uncommon or unusual for even the most profitable of manufactures to receive aid.

      Maybe they all take government money all over the world but if you're getting cars from another country at least you're not paying twice- i.e in taxes for their grant plus the cost of the actual car, instead some schlub in another country has already footed part of that bill for you.

    Well if they woke up and made some decent vehicles maybe this would not be happening.

    1. Other manufacturers offer better warranties with better quality vehicles.
    2. Value for money is still poor
    3. the base commodore needs to be under 30K
    4. no turbo diesal model commodore. (4 litre or 6 litre)
    5. Fuel efficency
    6. Why make bad decisions? e.g. using a rubbish engine in the holden colorado versus the Dmax which is a better engine. (same vehicle different badge)
    7. the 3.6 litre v6 is a better engine than the 3 litre.
    8. AEM should be on all holden vehicles.
    9. reduce variants. should only be 3 choices. budget, middle, top.
    10. further standardisation of vehicles to make them easier and cheaper to produce. in other words re-use as many parts between models as possible .e.g like how VW does it.

    Whilst discussing this with someone years ago, their idea of the perfect solution was for the government to give the money to Australian citizens with the stipulation that they have to buy an Aussie made vehicle. This money then supports all the people involved in the industry and not just delay the inevitable. Stagger this for every licensed Australian over a decade and you could sustain a company such as Holden with ease.
    As much as I hate Holden, the idea sounded great to me. Bonus points for getting some of the unsafe pieces of shit off our roads too.

      Good idea though I would most likely re-sell the holden and buy a toyota or nissan haha

    If government fleets went back to buying local cars rather than imports they wouldn't need the handouts.

    The thing is, Holden should be looking at cheaper cars to manufacture, the Commodore is big, expensive and not as well equipped as European cars in around the same price bracket.

    Why don't all the big bosses take pay cuts? that will probably free up a few million right there.

      really? what euro cars compare?

        There are many euro cars out there that dominate all over commodores in both pricing and quality.

        Simple search would show results.

        Euro cars don't compare because it is like comparing an apple (Euro) with an apple core (Holden).

    All governments around the world hand out large subsidies to manufacturers. Germany recently handed out large incentives to various manufacturers in order to retain positions. US state governments, most notably in the south, continue to woo manufacturers such as BMW and VW as a means of creating jobs in their state,

    Should Holden be more self sufficient? Sure. Are handouts from the Government unusual? Definitely not.

      There are economies of scale though. Money paid as handouts in the US or Germany reaps much higher rewards because the markets there are massive. In Australia what you're doing is paying a massive premium to support a tiny micro industry that likes to pretend it plays with the big guys.
      Remember that our entire population barely matches that of the bigger cities in some other countries.

    Where are the cheaper cars Holden ?, just luxury, comfort, price and horrible looks, manufacture some <$10k cars and you'll see some instant interest in your products, stop investing in expensive imported brands...

    If you can't survive then just perish and allow foreign car companies to invest in Aus themselves, bring in foreign money rather than use our taxpayer's reserves to maintain a bankrupt industry !

    Nissan got a 1.3 BILLION dollar handout in 1 year alone!!!!
    BMW got a 4 BILLION dollar handout in 1 year from the US government.
    Toyota got a 2 BILLION dollar handout in 1 year from the Japanese government.

      And if you go to any country in the world you'll see Nissans, BMWs and Toyotas, so their respective governments will be getting a fair whack of money in taxes, duties etc. back on that money. I've never seen a Holden anywhere except Australia or New Zealand, i.e. a tiny market with a similarly tiny chance for a decent return on any money invested.

        You know that Holden is sold as General Motors in other countries right?

          Kind of. They may be essentially the same vehicles but they're not made in Australia, so there is no financial gain for Australia. I used to drive a Vauxhall Omega in the UK, which is essentially a Commodore. It was manufactured in Germany.

            It doesn't matter where the car is manufactured. The money goes back to General Motors in USA which is Holden's parent company. Toyota manufactures Camry and Aurion cars in Australia but the money goes to Japan.

        That's because Holden is re branded to Vauxhall, Opel, Chevrolet & Pontiac overseas.. Just like we have overseas GM cars rebranded as Holden here.

          ...and the sales on the Holdens overseas are so strong that the iconic Pontiac was pulled. What other Holdens are sold overseas? The wanker-utes?

            That's because they stopped selling it as Pontiac and started selling it as a Chevrolet :) See the Chevrolet Cruze, Caprice, SS, CSV CR8 (aka The HSV Clubsport.)

            So yeah Chevy sell a few of the Holden models :) and they sell those worldwide just not in North America. Chevy also run a few Cruze models in the World Touring Car Championship.

      Have a look at the GDP levels of these countries...
      Japan - 6 trillion, USA - 16 trillion and Aus about 1.5 trillion...

      We don't have the workforce/population (exclude the retired) to re-attain the billions invested into 1 firm, all to keep them from generating a loss year after year, sounds absolutely stupid and it is...
      Instead, that same amount of money could be put into multiple industries who actually generate profits, or even into enticing foreign car companies to re-invest in Australia, rather than burning our own cash on no-income firms to pay for employment...., wtf ?!

      Because they are world class manufacturers, they deserve it.

      I don't really see many people around the world wanting to specifically import a holden.

    With the amount of Holden Cruz's I see around it makes me wonder what Holden do with the money?

      I'm guessing it goes to the big bosses Christmas bonuses and yearly pay rises.

      I think I recall Mike Deverox the big head guy from Holden saying the Aussie built Cruzes are sold at a loss. The overseas ones make money because they cost $3500 ish less to make. I think that's why they are talking about leaving Australia and from a shareholder point of view that's the smartest choice.

    Bloody hell!!

    Dear Australian Government,
    Can I please have just a couple of hundred thou? I don't need a couple of hundred mil...

    I promise to spend it on keeping jobs in Australia by buying a piece of land currently under foreign ownership and build a new dwelling on it hiring only Australian owned companies and assuming we have any left buy an Australian made car too...

      Australian owned companies that's something I wish we had more of these days with all the big names selling out to large overseas names =/

        we should have laws about that sort of thing.
        I'm not a racist, but we should have laws against foreign ownership of land and companies.

        Especially our mining. Mining should be state owned and run.

          Agreed, especially when the Chinese are coming in and buying up the Australian farms because the aussie farmers are sick of being treated like shit by our retailers.

          Also beer companies, from what I can tell out of the large Aussie brewers, only Coopers is Australian owned now. Which is a tragedy really.

            At least our government makes a good $$ out of the beer at the Bricks and Mortar level, but it's hardly a fix.

    Basically Australian manufacturing is going to be extinct in a few years. We cannot compete with the prices of imported goods and that is a fact. No matter how much support the government is able to provide. The only way manufacturing can survive is if people made a decision to buy local. Only the people can save the manufacturers and no one else.

    Holden have deals with the US to provide both Cruze and Commodores with a huge export deal. Yet they still cry for more money, they got a hand out and so did ford, ford has already decided to shut down, yet holden cry for more money. All they have to understand is that the government like to receive money but don't like giving it out. Maybe they should of started producing Hydrogen powered cars from water instead of investing so much time in to an ugly fuel guzzler.

      From what I have read, we only manufacture the Cruze for the Australian market, the US Chevy Cruze is built over in the states, but I may be wrong and it's part assembled here and finished there.

    Australia is TOO small to support a competitive automotive industry and all Holden we get now are just re-badged daewoo's or chevrolet (both company's make horrible cars).

    The only thing that the car industry in Australia should be is R&D and testing (all company's) finding out what Australia wants and needs so they can sell cars that work here and that we want to buy.

    I have never owned a Holden and looking at there lineup I have never been tempted when there are so many better options from other company's.

    Its too much money. Why does the gov hand out so much cash to companies but on the other side is happy to shed thousands of jobs from the public sector. I think a bit fair go is needed. Holden you have had opportunities to adapt and change knowing the costs here and have not. Lets not give them more money. Assist the workers find new jobs with the equivalent cash.

    How can this not be considered extortion? Give us $265 million or we will sack 30.000? employees. OK give them the money and put upper management in prison so they don't ask again in another year

    I say, spend the money on a steel foundry and produce steel here in Australia with Australian iron ore. Sell the steel cheap to all our industries and that way we can compete even though the dollar is high. Use our minerals to prop up our industries instead of letting these billionaire companies raping our country, selling it overseas and making Australians pay through the nose for what it's rightfully ours. Stop kissing the arse of these foreign companies and start looking after ours, Mr shit box government

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