Adelaide Holden to Shut Down for 25 Days

[csv8]

Workers employed at Holden's plant in northern Adelaide will lose more work, following the car maker's decision to schedule another 25 days of production shutdowns.

The production line closures, to be spread across the first three months of next year, are the result of poor sales amid the global economic crisis, the Manufacturing Workers Union said.

Holden will make 15,000 fewer cars because of the production slowdown.

The car maker's 3,400 workers in South Australia have already had several days off in recent weeks.

Holden official Andrea Matthews assured workers no jobs were currently at risk.

"We always say there's no guarantees in the car industry but what we have preferred to do is introduce these extra non-production days rather than remove jobs," she told ABC Radio.

"We think our workers clearly prefer this as well."

Ms Matthews said Holden was committed to maintaining a manufacturing presence at Elizabeth and was confident of the future.

Not good news, I now we don't like Holden, but we must have sympathy for the workers.

[ea90gl]

Not good news just hope that the holden bogans wake up and realise that the whole car industry is in trouble these days not just Ford. Many jumped on the "falcon's dead" bandwagon as soon as any related article was released now all of a sudden its GM too that is in trouble. Never the less it will be interesting to see how this pans out if GM US goes under.

[xe351]

maybe the gover guy will do an article on this?

[vztrt]

Originally Posted by xe351

maybe the gover guy will do an article on this?

He'll put a spin (like usual) and will say that Holden will save GM and prob cure cancer as well lol.

[Polyal]

Originally Posted by vztrt

He'll put a spin (like usual) and will say that Holden will save GM and prob cure cancer as well lol.

HAHAHA I spat my beer!

[xe351]

Originally Posted by vztrt

He'll put a spin (like usual) and will say that Holden will save GM and prob cure cancer as well lol.

haha i can see the headline now "Final nail in automotive coffin as holden saves the whales and the world"

[AndrewR_AUII]

ALL manufacturing in Australia is in trouble.

[madmelon]

Originally Posted by AndrewR_AUII

ALL manufacturing in Australia is in trouble.

Isn't it ironic that the government is going on about how certaing huge emerging markets to our north will save Australia from the brunt of the looming recession when it is the unethical (and often downright criminal) behaviour of said counties which have contributed to the downfall of almost all manufacturing here...

[seduced_xr]

with a bit of luck holden will go 1st and more fords will sell

[BENT_8]

I hope like hell they dont go down the tube..5000 more jobless bogans in 'Lizbeff is all we need.

[SPK-250]

Originally Posted by BENT_8

I hope like hell they dont go down the tube..5000 more jobless bogans in 'Lizbeff is all we need.

Is that to go with the other 500000?

[vztrt]

Originally Posted by seduced_xr

with a bit of luck holden will go 1st and more fords will sell

Holden go under, Ford will announce shutting down in Oz and the Taurus will be sold here.

[irlewy86]

Holden saves workers jobs by having non production days, Ford sacks people BOOOO! by Paul Gover

[xls3v]

if ford or holden go the other will gain lots of customers and maybe survive. how many falcon customers will buy a taurus.

[Silver Ghia]

Rather than closures early next year, I would have thought it would be better to close over December like Ford is doing.

Reason being it would be very hard to shift December 2008 cars in 2009.

And as for Gover, his spin would be same as he normally does, something along the lines of a big headline and article on Ford and its problems, and probably not even mention Holdens closures or GM's problems.

[minheim]

The worst outcome for Ford's falcon would be Holden closing and visa versa as the impact on local component and parts suppliers would further undermine local production and the rationale for it. The loss of another manufacturer would inevitably mean more imports and not necessarily a huge increase in local sales to the remaining brands. Here's hoping the government can maintain local suppliers and manufacturers afloat until market confidence returns.

edit - spelling

[Fordman1]

I think this had been coming for a while.

The Ford mindset is to monitor sales monthly and size the business to suit.

It seems that the GM mindset may not be as aggressive. I think there will be more anouncements about Holdens health in the next few months.

Their 'Golden egg' G8 is a flop and they are not selling anywhere near what they need-to to make money on their 'Billion dollar baby'. I'm tipping a big loss for them when they release their 2008 financial results.

I hope they have a business plan which is more than 'Commodore' and its exports, otherwise they're gone !!

[TurboUteris]

Holden shutting down would have more to do with GM's poor financial stability in the US,rather than low Commodore sales.Its still in the top three passenger cars in oz.
Although what shits me is all the Aussie do gooders,swearing they'd buy Australian products until it comes to the crunch and they buy an import.
These few examples of Aussie designed and built machines should have an advantage via Gov. input to make them lower in price compared to the likes of all the imported cars.(could be a tax rebate for buying a locally made car?) Rather than throwing wads of cash at the manufacturer which ends up gowing OS.

[buggerlugs]

They just had a bit on it on the 7.30 report. They said GM sold 45 % less this October than 2007. The report said it doesnt look like the US Government is going to give the car makers the 25 billion at this stage, They will look at it when the new government is in office early next year. The CEO of GM said that would be to late, basically they could go belly up within four weeks .........

[Gobes32]

This is huge news, they are basically not going to make cars for the first three months of next year!!!!!! That is a huge financial strain on holden's finances. You still have your outgoings but there is no money coming in either. Really puts things into perspective. Ford employees have had a really rough go of things the last couple of months but it really hits home when Holden decide to not produce anything for a QUARTER OF NEXT YEAR!!!!!! I am certainly surprised that this is not the biggest news on AFF at the moment...........

[SPK-250]

Holden dont really give a toss about manufacturing a car in OZ. If they did they would have likely spent 1 billion dollars developing a mid size 4 cylinder instead.

At the beginning of October Holden had 2 weeks shutdown, the shortfall of that was so did we (Walker Aus) and holden only sold just over 600 cars total in that fortnight!

Its funny because they were going to cut production next year by 200 odd cars, but instead they are now still going to make 600+ cars a day, but work less days a week.

Spare a thought for the people like myself who work in the OE parts supply area when Holden decide they only want to work 3-4 days a week. I can't see myself working a full 5 day week for the first 3-6 months of next year.

How good is that going to be for my pay packet??

[Dr Smith]

Maybe Holden's production down days and drop in build also has to do with the likelihood that many Holden dealers won't be able to stay in business if they can't get stock financing once GE money and GMAC close doors later this year.

[Fordman1]

Originally Posted by Dr Smith

Maybe Holden's production down days and drop in build also has to do with the likelihood that many Holden dealers won't be able to stay in business if they can't get stock financing once GE money and GMAC close doors later this year.

Dealers need financing for floor stock and inventory.

If they have a full order bank their need for financing is much lower, the car's come in, get predelivered, registered, and sold quickly.

The problem is cars are NOT selling and dealers need to hold stock and finance what they are holding.

If Holden was interested in helpinig their dealers they would stop building to 'spec' and only build to order. Maybe that'd also clean up the 1,000's of 'dunnydores' they have sitting 'on grass' also.

I think the 'penny' has just dropped and they can see that sales are NOT going to magically increase on their own. Watch this space for a downbalance at Holden soon and lots of job losses.

They can't run at that daily rate and have a large number of down days for ever.

[4Vman]

Originally Posted by Barraxr8

Dealers need financing for floor stock and inventory.

If they have a full order bank their need for financing is much lower, the car's come in, get predelivered, registered, and sold quickly.

The problem is cars are NOT selling and dealers need to hold stock and finance what they are holding.

If Holden was interested in helpinig their dealers they would stop building to 'spec' and only build to order. Maybe that'd also clean up the 1,000's of 'dunnydores' they have sitting 'on grass' also.

I think the 'penny' has just dropped and they can see that sales are NOT going to magically increase on their own. Watch this space for a downbalance at Holden soon and lots of job losses.

They can't run at that daily rate and have a large number of down days for ever.

Its a dangerous situation isnt it... if Ford and Holden can't get finance for their Floor stock your local dealership will only need to be about the size of a milkbar.. come to think of it maybe dealerships will shut up their branches and open up in shopping centres with virtual walk-through showrooms but no physical stock as everything will be made to order with an 8 week lead-time...

[irlewy86]

Originally Posted by 4Vman

Its a dangerous situation isnt it... if Ford and Holden can't get finance for their Floor stock your local dealership will only need to be about the size of a milkbar.. come to think of it maybe dealerships will shut up their branches and open up in shopping centres with virtual walk-through showrooms but no physical stock as everything will be made to order with an 8 week lead-time...

Reminds me of the Renault dealer in Redcliffe Qld, Showroom floor just big enough for a Megane and a Kangoo, a single bay service department and no yard. Didn't think you could make money on a dealership so small.

[FGII-XR6]

in the mean time ford aus is expanding production at Geelong and continuing to develop the I6 a good step for all http://www.fordforums.com.au/showthread.php?t=11241338
http://au.news.yahoo.com/a/-/latest/...plant-closure/

[Gobes32]

Direct labour (operators, painters, engine builders) costs per car are actually very small, it's the indirect labour (first aid, transport, site maintenance) costs that kills you.

[mik]

when does the three week closure start ? Elizabeth plant usually closes for 3 weeks just before xmas so the engineers can do line maintenance, although with all the down time they may be up to date with maintenance, if not it could be a six week holiday.

[BENT_8]

Originally Posted by mik

when does the three week closure start ? Elizabeth plant usually closes for 3 weeks just before xmas so the engineers can do line maintenance, although with all the down time they may be up to date with maintenance, if not it could be a six week holiday.

They wont be taking 3 weeks in one block, they will run 3 or 4 day weeks.

[SPK-250]

Holden are having just under 5 weeks off over Xmas(as are Ford), resuming work on the 14 of January 2009. Once back at work is when those 25 down days will start happening, the first one as early as the Australia day weekend a week and a half later.