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Holden promises to keep making cars in Australia, despite Ford's 2016 exit

 Holden promises to keep making cars in Australia, despite Fords 2016 exit
2014 Holden Caprice 15.5.2013

High assembly costs a problem for Holden as well

Holden vows to maintain production facilities in Australia, even though Ford has announced a 2016 exit.

About a week ago the Blue Oval company released a somewhat surprising press release in which they confirmed to stop making cars in Australia by 2016, thus letting go of no less than 1,200 jobs. Holden promptly responded to this news by promising to continue production Down Under.

Holden's chairman Mike Devereux says the firm has a ten-year production plan with the local government, with a massive billion-dollar investment requiring the launch of two global models. Despite the good news, Holden's production is affected by high assembly costs, one of the major reasons why Ford has decided to close up shop in Australia.

Source: Holden

Statement attributable to Holden Chairman and Managing Director, Mike Devereux:

The announcement by Ford today is a reminder of just how tough it is for manufacturers in Australia, even the most committed, like Holden, which is bringing out the most technologically advanced car ever made in Australia.

The new Commodore is a car that is a class above and will change minds. It plays a critical role in Holden's long-term future in Australia and it is expected that Commodore will continue to be one of the top 10 selling cars in the country.

Despite Ford's announcement to end local manufacturing, we believe the industry can survive in Australia and has already adjusted in large part given Ford's relatively low production volumes.

Holden set out a 10-year manufacturing plan that was agreed with the Australian Government in 2012, based on the economic and market conditions at that time. That plan would see Holden invest a billion dollars in this country and secure production of two all-new global vehicles out to 2022.

The industry needs swift action to make Australia's automotive policy settings clear, consistent and globally competitive as quickly as possible.

Holden is working closely with the Australian Government, Federal Coalition and the State Governments to ensure the viability of the industry in the face of the historically significant economic challenges facing the country.



The announcement by Ford today is a reminder of just how tough it is for manufacturers in Australia, even the most committed, like Holden, which is bringing out the most technologically advanced car ever made in Australia.

The new Commodore is a car that is a class above and will change minds. It plays a critical role in Holden's long-term future in Australia and it is expected that Commodore will continue to be one of the top 10 selling cars in the country.

Despite Ford's announcement to end local manufacturing, we believe the industry can survive in Australia and has already adjusted in large part given Ford's relatively low production volumes.

Holden set out a 10-year manufacturing plan that was agreed with the Australian Government in 2012, based on the economic and market conditions at that time. That plan would see Holden invest a billion dollars in this country and secure production of two all-new global vehicles out to 2022.

The industry needs swift action to make Australia's automotive policy settings clear, consistent and globally competitive as quickly as possible.

Holden is working closely with the Australian Government, Federal Coalition and the State Governments to ensure the viability of the industry in the face of the historically significant economic challenges facing the country.

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Comments (3)

Axden
Good to see holden wants to keep making cars here at least, maybe not the commodore sedans but other ones like the cruze and a few others
May 28, 2013 12:06 am
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PAA
What kind of salaries do the Australians get? I mean if countries like Germany and the US manage to build cars profitably shouldn't Australia be able as well?
May 28, 2013 12:06 am
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eemo_crash
I read an article about Ford closing down in Australia, and it said that it costs twice as much to produce a car in Australia than in Europe. And four times the cost than to produce in Asia. There really is no case for building cars in Australia. The industry is continually propped up by government injections. It's the only reason any of them have lasted this long. I mean, I know its good to keep people in their jobs. But its just not sustainable. The governments continue to throw money into the black hole that is the Australian automotive industry, taking money from the Australian tax payer for it. GM and Toyota are two of the biggest companies in the world that have economies bigger than many countries. If they aren't able to afford to keep their Australian subsidies operational, then why let them continue to suck more and more money form the Australian public?
May 28, 2013 4:28 am
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