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#1 | ||
Solution Was Boost 4?, 6 & 8
Join Date: Dec 2004
Location: Melbourne
Posts: 23,624
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Holden's 'near-death' fright Eric Johnston, Clancy Yeates
September 2, 2011 from The Age.. . Holden its own: The car maker's prospects looked grim at the height of the financial crisis. HOLDEN Australia's manufacturing business almost collapsed after its US parent cut it adrift at the height of the financial crisis, according to a leaked diplomatic cable. Cables released by WikiLeaks show that in 2009 Holden Australia's then chairman and managing director, Mark Reuss, reportedly described the situation as ''very dark'' and said the car maker would ''scrape by'' until local production of its mid-sized Cruze model began. He reportedly made the comments during a meeting with officials at the US consul in Melbourne in June 2009. Holden's parent, General Motors, had filed for bankruptcy two weeks before the meeting. Advertisement: Story continues below The cable said the Australian government had stepped in to help Holden raise money through banks, including ANZ, noting that Australian banks were wary about lending to Holden without backing from its parent. ''Holden is scraping by in the competitive Australian automotive market, even though financing from its parent company has all but dried up,'' the cable said. ''While Holden will remain a part of the new GM, the Australian subsidiary was 'fenced off' from the parent in an attempt to prevent US tax dollars from flowing out of the United States,'' it said. This forced Holden to dramatically scale back production at its South Australian plant and to reportedly seek short-term loans from GM finance facilities in Mexico and the European Union, among others, the cable said. It said Mr Reuss ''appeared frustrated that GM had effectively left Holden in the financial wilderness'' once it accepted US Treasury money. Mr Reuss has since become president of General Motors' North American arm. A spokeswoman for Holden said the cable was an interpretation of a conversation and was inaccurate in parts. ''The material appears to be notes taken by someone making observations of a conversation - it's not a factual document - and it includes a number of inaccuracies about potential export volumes and our financial arrangements,'' said Holden spokeswoman Emily Perry, who declined to comment further. It is believed Holden did not seek financing from ANZ. The cable also describes the car maker's plan to shift to production of mid-sized cars, with $149 million in financial support from the Australian government's Green Car Innovation Fund. The cable noted that Mr Reuss believed a good relationship with the federal government ''will be critical'' should Holden need to ask for further assistance. The undermining of the economics of Holden's Australian business model was mainly due to the collapse of its exports. Holden eventually persuaded the parent company to give financial support to its restructure, despite the parent's problems. Fundamental to its argument was that Holden played a key part in GM's global design and production network. After racking up more than five years of losses, Holden's latest financial accounts show it delivered an after-tax profit of $112 million in 2009-10, rebounding from a $211 million loss in 2008-09. In recent years, it has closed its ageing four-cylinder engine plant, cut more than 2000 jobs and shifted its focus to domestic sales. A spokeswoman for Industry Minister Kim Carr declined to comment. Read more: http://www.theage.com.au/business/ho...#ixzz1Wl9HEJD5
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#2 | ||
FF.Com.Au Hardcore
Join Date: Jun 2011
Location: Pt Lincoln far side South Oz
Posts: 5,760
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Try and budget how much they have received from Federal & state govmints
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Dont p i s s off older people. At our age the term Life in Prison is not a deterrent |
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#3 | |||
Cobblers!
Join Date: Mar 2005
Location: The Shire, NSW
Posts: 4,489
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Quote:
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Ego BFII Ghia Titanium Silver E53 X5 4.4i Gunmetal EF XR6. Now retired from active duty. Roses are red. Violets are blue. OS X rocks. Homage to you. |
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#4 | |||
IWCMOGTVM Club Supporter
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,798
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http://theage.drive.com.au/motor-new...901-1jo91.html
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Daniel |
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#5 | |||
IWCMOGTVM Club Supporter
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,798
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http://www.caradvice.com.au/135850/h...-gm-wikileaks/
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Daniel |
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#6 | ||
Fixing Ford's **** ups
Join Date: Feb 2009
Location: In a house
Posts: 4,759
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Nothing new. It was well publicised when the global financial crisis was round, that not only this car manufacturer was struggling, but others as well.
It was also documented that Holden was scaling back production, due to the sales slump, and they were also waiting for the Holden cruze to come into production. They even offered reduncy packages to employees to help keep their head above water. The employees that stayed, were put on reduced pays, for one week (which they had off) and then when they had their weeks on, they got their full entitlements. Once the Cruze came on line and sales picked up, Holden then went into full scale production, and also employed more people. So in reality this news is old news
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A wheel alignment fixes everything, when it comes to front end issues. This includes any little noises. Please read the manual carefully, as the these manufacturers spent millions of dollars making sure it is perfect.....Now why are there so many problems with my car, when I follow the instructions to the letter?....Answer, majority rules round here Lock me up and throw away the key because I'm a hoon....I got caught doing 59 in a 60 zone |
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#7 | ||||
Banned
Join Date: Mar 2006
Posts: 1,223
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Quote:
![]() It was NOT a $200m handout as you are implying. It was a line of credit which was NOT drawn upon. http://www.themotorreport.com.au/392...xport-programs Quote:
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#8 | |||
FF.Com.Au Hardcore
Join Date: Aug 2005
Location: Melb.
Posts: 4,437
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#9 | |||
Banned
Join Date: Mar 2006
Posts: 1,223
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#10 | ||
FF.Com.Au Hardcore
Join Date: Jan 2009
Posts: 2,653
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how many times does this story have to link??? IT IS OLD NEWS!! why any website is putting it out there a new news is beyond me..
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#11 | |||
Cobblers!
Join Date: Mar 2005
Location: The Shire, NSW
Posts: 4,489
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Quote:
Holden needed the 'Line of Credlt', and couldn't get it from anywhere but the taxpayer. Smells like a hand out, looks like a hand out, must be a hand out.
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Ego BFII Ghia Titanium Silver E53 X5 4.4i Gunmetal EF XR6. Now retired from active duty. Roses are red. Violets are blue. OS X rocks. Homage to you. |
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#12 | |||
Solution Was Boost 4?, 6 & 8
Join Date: Dec 2004
Location: Melbourne
Posts: 23,624
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Quote:
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AUTOTECH TUNED EDELEBROCK CHARGED 2017 GT Mustang Plenty of RWKW |
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#13 | |||
FF.Com.Au Hardcore
Join Date: Jan 2010
Posts: 11,274
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Quote:
that unless Holden was given Cruze production, Elizabeth was not viable. |
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#14 | |||
Fixing Ford's **** ups
Join Date: Feb 2009
Location: In a house
Posts: 4,759
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Quote:
So can you say with confidence that it was a hand out and not a loan? Loans get paid back. Hand outs don't. So unless you're working for the Gov't treasury dept or Holdens financial dept, I seriously doubt you can answer the question properly. You can only speculate, like the rest of us The gov't supplying Holden with this money was a savour in the long run. The workers and suppliers are still in a job (well paying too), which means the gov't is getting good money (from there taxable income), rather than getting less money because the workers wouldn't be earning as much, or be reliant on the dole for a period of time. (Reading between the lines, us non Holden workers would be supporting them even more). So instead of having a sook about us tax payers loaning or giving this company a few mill, think about the long term benefit, which also includes local businesses that operate round that area and benefit from the employees. (Again, the gov't getting more tax dollars from workers and businesses in the area)
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A wheel alignment fixes everything, when it comes to front end issues. This includes any little noises. Please read the manual carefully, as the these manufacturers spent millions of dollars making sure it is perfect.....Now why are there so many problems with my car, when I follow the instructions to the letter?....Answer, majority rules round here Lock me up and throw away the key because I'm a hoon....I got caught doing 59 in a 60 zone Last edited by svo supporter; 02-09-2011 at 11:00 PM. |
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#15 | |||
Cobblers!
Join Date: Mar 2005
Location: The Shire, NSW
Posts: 4,489
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Quote:
As for the Loan/Line of Credit/Handout - if they didn't need it, why wouldn't a Bank offer it. If the Commonwealth couldn't come up with the funds, surely another Financial institution could come up with the money. I'm thinking that straits were more dire than we would realise, and that the Banks would have had a hard time guaranteeing the money, hence the phone call to Chairman Rudd/Assassin Swan.
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Ego BFII Ghia Titanium Silver E53 X5 4.4i Gunmetal EF XR6. Now retired from active duty. Roses are red. Violets are blue. OS X rocks. Homage to you. |
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#16 | |||
FF.Com.Au Hardcore
Join Date: Jan 2010
Posts: 11,274
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Quote:
Ford's business model for Focus was based on 65-70% being base model which has been proven false by the very market Ford assessed. LV Focus sales have been mostly Zetec and Ghia sales. Also, importing Cruze parts becomes around 30% cheaper with Aussie dollar going from 70 cents to $1.03, that makes bluddy good business sense....Holden fluked that one ![]() Last edited by jpd80; 02-09-2011 at 11:23 PM. |
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#17 | |||
Right out sideways
Join Date: Dec 2004
Location: Coffs Harbour NSW
Posts: 5,304
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Quote:
![]() LOL JK i am stirring people.
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2010 FG XR50 Turbo | 2007 FPV BFII GT, BOSS 302 |
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#18 | |||
FF.Com.Au Hardcore
Join Date: Mar 2006
Posts: 2,021
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/\ Ha ha, made me laugh........
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#19 | |||
FF.Com.Au Hardcore
Join Date: Jan 2009
Posts: 2,653
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#20 | |||
You dig, we stick!
Join Date: Mar 2006
Posts: 7,461
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What were they hiding to keep this loan such a secret?
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"....You don't put the car through engineering" - Rod Barrett. |
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#21 | |||
Banned
Join Date: Mar 2006
Posts: 1,223
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#22 | |||
FF.Com.Au Hardcore
Join Date: Aug 2005
Location: Melb.
Posts: 4,437
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#23 | ||
FF.Com.Au Hardcore
Join Date: Feb 2010
Posts: 1,242
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The whole thing may be old news, but it does remind us of the fact that what ever Holden releases to the public, two years down the track the truth comes out and versions are slightly different. At the Height of the GFC, we had Reuss and Kim Carr saying Holden was viable and people should be buying cars as per normal. The reality was that those who bought a car, were paying a premium for a warranty that may not have existed two months down the track.
Holden is no more viable now, than they were during the GFC. Pre GFC, the line had a speed of 320 cars per shift (640 on two shifts). On an average 21 work month, they arent even coming close to averaging 320 commodores (or derivatives) each day. They have filled the void with a car that sells for 1/2 the wholesale price that a new commodore does. They dont achieve some sort of cost savings by importing the majority of the cruze, with a high australian dollar. They compete against other car makers, that have also lowered car prices over the years, due to the advantages acheived by a high australian dollar. The minute cruze went local, the retail price jumped, whilst its competititors prices were falling. Since the CFC, Holden have apparantly spent approx. $350 million of their own money on the cruze line (which is absolite crap), for absolutely no benefit to them. As a stand alone company, they are in even worse financial position in regards to their reliance on the sales of locally made products (cruze and commodore make up around 70% of their sales), than they were at any time during the GFC. It just takes two years for this information to come out. GM US are trying to renege on warranties for cars made under the "old" GM, why would anyone think that when the australian operations have to be cut loose due to "real" continuing losses, that they will be left with a 2 month old car with no warranty. Toyota workers in oz walked off the job yesterday (more planned in coming weeks) due to the fact that they have only been offered a 1% pay rise (last raise was early 2010). If toyotas local operations are feeeling the pinch, I cant see any rosiness in Holdens operations. |
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#24 | ||
VFII SS UTE
Join Date: Apr 2007
Location: Central Coast
Posts: 6,353
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bob; maybe wait until holden post profit/losses for the financial year would be better.
as for not honuring warranty! where your link.. according to GMI members they have had no problems with old GM warranty.
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I don't often hear the sound of a screaming LSX. But when I do, So do the neighbours.. GO SOUTHS
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#25 | |||
Fixing Ford's **** ups
Join Date: Feb 2009
Location: In a house
Posts: 4,759
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Quote:
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A wheel alignment fixes everything, when it comes to front end issues. This includes any little noises. Please read the manual carefully, as the these manufacturers spent millions of dollars making sure it is perfect.....Now why are there so many problems with my car, when I follow the instructions to the letter?....Answer, majority rules round here Lock me up and throw away the key because I'm a hoon....I got caught doing 59 in a 60 zone |
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#26 | |||
FF.Com.Au Hardcore
Join Date: Feb 2010
Posts: 1,242
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Quote:
http://www.chicagotribune.com/busine...0,870265.story |
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#27 | |||
VFII SS UTE
Join Date: Apr 2007
Location: Central Coast
Posts: 6,353
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Quote:
the rest are ambulance chasers...
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I don't often hear the sound of a screaming LSX. But when I do, So do the neighbours.. GO SOUTHS
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#28 | ||||
FF.Com.Au Hardcore
Join Date: Mar 2006
Posts: 2,021
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#29 | |||
Fixing Ford's **** ups
Join Date: Feb 2009
Location: In a house
Posts: 4,759
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Quote:
Good question. I have no idea what they should be paid, but they're always after more. I was mearly puting up what the base rate was and a reasoning behind why Toyota is striking. IMA, I hate unions as well. My experience with them is, if you don't get your own way, strike, which means you lose money constantly. But everyone has their own opinions of them, which we'll leave out of this thread.
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A wheel alignment fixes everything, when it comes to front end issues. This includes any little noises. Please read the manual carefully, as the these manufacturers spent millions of dollars making sure it is perfect.....Now why are there so many problems with my car, when I follow the instructions to the letter?....Answer, majority rules round here Lock me up and throw away the key because I'm a hoon....I got caught doing 59 in a 60 zone |
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#30 | ||
Solution Was Boost 4?, 6 & 8
Join Date: Dec 2004
Location: Melbourne
Posts: 23,624
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We started talking about Holdens plight back in 2009, now we are about Unions and pay rates...
Closed ps: the people who work on the shop floor are the union.
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AUTOTECH TUNED EDELEBROCK CHARGED 2017 GT Mustang Plenty of RWKW |
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