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#31 | ||
FF.Com.Au Hardcore
Join Date: Nov 2009
Posts: 3,876
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The beauty of this project is that there is no retail sales. Every Caprice PPV built will have an order attached to it, they wont have to worry about building cars to be sitting unsold in depots and car yards around the country. Kind of similar in a way when Ford AU used to send Fairlanes to the UK for the hearse market.
All they need to do is run a few Caprices down the line whenever they get an order, chuck them on the boat and done! The car is already US compliant, they already built it in LHD and they already have the transport networks set up from the Pontiac G8 and GTO exports. Its very very low risk for Holden and gives them extra volume and keeps the Australian Holdens in US management minds as they determine upcoming models and funding. I suspect Holdens strong relationship with the US head honchos is just as important as the vehicles themselves. Last edited by Brazen; 16-11-2010 at 12:40 PM. |
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#32 | |||
Regular Member
Join Date: Sep 2010
Posts: 164
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Quote:
As for it being a std Caprice, way off target there. Heres a list of some of the changes 1: Foot Brake for the pursuit vehicle 2: Rubber floor mats 3: Different seat structure 4: Different instrument cluster 5: Firewall changes 6: revised centre console Plus there's also alot of dev work happening for the next model year. Total development costs are in the vicinity of $10m to $20m before a car has been sold. As for Cruze, doesn't start production until Feb and there's a lot of issues that need to be resolved before then. The second shift is building Commodores and lots of them to ensure stocks during Cruze ramp up. |
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#33 | |||
Cobblers!
Join Date: Mar 2005
Location: The Shire, NSW
Posts: 4,489
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#34 | ||
FF.Com.Au Hardcore
Join Date: Jan 2009
Posts: 2,653
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What countries is Cuze down for except??
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#35 | |||
Cobblers!
Join Date: Mar 2005
Location: The Shire, NSW
Posts: 4,489
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Quote:
When Holden jumped onto the Me Too bandwagon, the dollar wasn't at US$.80. It is now hovering close to parity. See the problem?
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#36 | |||
FF.Com.Au Hardcore
Join Date: Aug 2005
Location: Melb.
Posts: 4,433
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#37 | |||
FF.Com.Au Hardcore
Join Date: Feb 2010
Posts: 1,242
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And from what i understand, when the cruze is manufactured in OZ, it will still be approx 70% imported, due to the fact that its basically a CKD kit. The 30% accounts for the body being made here, as well as some assembly work (on imported parts). So all they are doing is adding in extra labour (boxing and then unboxing) at a higher price than what they originally bargained for. I think one of the best comparisons one can make with the cruze, is the Mitsubishi lancer. A little while ago, both cars were selling for same price $22990 on road. The lancer has since gone down to $21990, plus $500 cash back. Not to mention the better warranty etc (and also its a better car). The cruze started of selling OK (2500 per month), but is now starting to drift back to the 2000's. looking at some of the sales stats from this forum, the astra was hitting sales of 3000 per month back in around 2005. If it didnt make sense for Holden to be making 3000 astras a month, when the aussie dollar was 60 cents to the US and tarriffs were at 15%, then something in me say they are gonna take a bloodbath with 2000 cruzes a month, tarrifs at 0 or 5%, and the aussie dollar at parity. Might be a good time for Ford to put some pressure on the with Falcon pricing. If they can get Holden to go belly up, they can pick up an extra 2000 Falcon buyers per month. |
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#38 | |||
FF.Com.Au Hardcore
Join Date: Nov 2009
Posts: 3,876
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The better question is how does Mitsubishi make money? The Japanese workforce is the highest paid in the world, the cars are built on some of the most expensive land in the world and the cars are shipped halfway across the world at a time when shipping by boat is as expensive as its ever been. The trick for Mitsubishi ?? its volume and its the same for Cruze, this is about pumping an extra 50,000 cars a year through elizabeth by 2012 with cheap Aussie labour (compared to Korean and Japanese labour) on cheap Aussie land, and shipping cheaply on the back of trucks. It dosnt hurt its a market which is dominated by profitable private buyers who are downsizing but are buying more well-equipped smaller cars.... it also plugs Holden in (pardon the pun) into future electric vehicles developed on the delta platform. oh yeah and lets not forget the $150 million Holden was given by the government to do it. |
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#39 | |||
Cobblers!
Join Date: Mar 2005
Location: The Shire, NSW
Posts: 4,489
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Quote:
Holwoo last made a profit when?
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#40 | |||
FF.Com.Au Hardcore
Join Date: Feb 2010
Posts: 1,242
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Quite simple really. When the japanese make cars, they set up to pump them out at 300,000 to 400,000 per plant. If you spend $300 million to make 1.2 million cars over a 3 year period, you have to recoup $300 a car to pay for it. If you spend $300 million to make 70,000 cars over a 3 year period, you have to recoup nearly $5000 per car to pay for it. Also a plant manager on $150,000 who overseas 400,000 cars a year, is adding 40 cents onto that car. A plant manager on $150,000 who overseas 25,000 cars a year, is adding $6 onto that car. And so on, and so on. |
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#41 | ||||
Thailand Specials
Join Date: Aug 2009
Location: Centrefold Lounge
Posts: 49,000
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#42 | |||
Ich bin ein auslander
Join Date: May 2005
Location: Loving the Endorphine Machine
Posts: 7,453
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Quote:
I can see the cops would have exactly the same issue, the difference is US cops get purpose built vehicles, aussie cops get whatever is on the go on the local market. Specialisation is about as extensive as putting in a radio and bolting on some lights.
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#43 | |||
Regular Member
Join Date: Jun 2010
Location: Old Sydney Town
Posts: 440
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#44 | |||
FF.Com.Au Hardcore
Join Date: Jan 2010
Posts: 11,268
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it's better that they have kinda similar products that appeal to different buyer demographics. What Ford have to do is start selling cars that attract more buyers from outside the large car sector. This is where the new LILPG and Ecoboost engines come into play, heck let's try a diesel too. The 2.2 I-4 diesel from Ranger/Mondeo is also available and may give a really low litre/100km figure strong enough to lure in fleets and people looking for a really economical big sedan... |
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#45 | ||||
Force Fed Fords
Join Date: Aug 2005
Location: Enroute
Posts: 4,050
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Quote:
Before the high dollar, it was US$37000.00, after it is US$44500.00. This $7.5K increase is only going to make it much more unattractive and less viable.
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#46 | |||
Regular Member
Join Date: Sep 2010
Posts: 164
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#47 | |||
Regular Member
Join Date: Aug 2006
Posts: 105
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Will it be worth it or are GM better of building the cars in the states, or elsewhere? |
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#48 | ||||
Force Fed Fords
Join Date: Aug 2005
Location: Enroute
Posts: 4,050
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#49 | |||
FF.Com.Au Hardcore
Join Date: Nov 2009
Posts: 3,876
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There is no way a company with such wafer thin profit margins would leave themselves to the mercy of currency risk. However this hedging runs out sooner or later, you just have to hope the currency has come back down by then or you are able to re-hedge at a point when the currency has devalued. |
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#50 | |||
Regular Member
Join Date: Sep 2010
Posts: 164
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Quote:
Most of the parts in the car are fixed price , so material changes aren't paid through to the vendor anyway . All of the OS parts are bought in USD (even China & Thailand contracts are all USD) , so right now they are reaping massive rewards for bought in items. ALL of Holden steel is sourced from Korea in USD. There's a massive proportion of the VE cost which is in USD , so the increase in the USD : AUD rate loss on the CCPPV car is offset against the savings across the board on every VE for the bought in materials, this amount would more than offset the reduction in revenue due to the volume disparities. |
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#51 | |||
VFII SS UTE
Join Date: Apr 2007
Location: Central Coast
Posts: 6,353
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Quote:
alloy component are BHP ingots, malaysia. steel component are One Steel 50mtr rolls, newcastle NSW.
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#52 | |||
Regular Member
Join Date: Sep 2010
Posts: 164
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The supply base pre-dominately uses Bluescope steel , but the pricing is fixed based on previous rates and Holden dont accept material variances for steel. Holden's themselves by most of their steel from Posco which is Korean. |
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#53 | ||
Regular Member
Join Date: Feb 2008
Posts: 179
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Wow - the smaller AWD PI is faster than the big Caprice by half a second a lap - who would have guessed that?
Wonder how the AWD goes for fuel economy, the way cops drive.............. |
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#54 | |||
IWCMOGTVM Club Supporter
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,798
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