Holden to Cut more Jobs

[Fez WQ]

Holden cuts workforce after GM cancels programs
Negative effect: Contract workers are on the way out at Holden's design centre.</B>

Holden sheds contract jobs as GM abandons global rear-wheel drive vehicle projects

By TERRY MARTIN 2 September 2008


GM HOLDEN is shedding an unspecified number of contract design and engineering positions following parent General Motors’ decision to abandon work based on the Australian-developed global rear-wheel drive architecture.

After another tumultuous week for Australian vehicle manufacturing, during which 240 fresh job cuts across three automotive component suppliers and Kenworth Trucks were announced – less than a week after Ford declared that 350 jobs would be slashed at its Geelong and Broadmeadows plants – GM Holden has revealed to GoAuto that contract positions were being terminated on an ongoing basis until it reached the “appropriate level to meet the revised workload”.

The cutbacks commenced some weeks ago.

“There’s been a number of global programs either cancelled or put on hold,” said GM Holden spokesman John Lindsay.

“Because we do global work through our global design and engineering (operations), essentially what we’ve been doing is reducing our workforce to the appropriate level to meet the revised workload.

“What we’ve been doing is approaching our contracted staff, and those who aren’t required we’ve been letting them go. So that’s an ongoing process at the moment.”

Mr Lindsay refused to divulge the exact number of positions being cut but confirmed that no permanent positions had been affected. He said the contract terminations would continue “until we’ve got the right balance and mix of skills that match the workload that we have”.

GoAuto sources have indicated that the staff cuts are extensive and have had a dramatic impact on operations.

“We haven’t been giving out any numbers on this because basically it’s ongoing,” Mr Lindsay said. “But essentially we scaled up to match the projects we were getting from global (head office) to cope with that – and we did that with contract staff, which is why we do have contract staff – but now with those reductions, we’re scaling down appropriately.

“It’s something we’ve done before – and part of our normal business practice … I wouldn’t want to put a specific time (frame) on it, but it’s something that we’re working through at the moment.

“We have to make sure that we have the right skills mix. There will be some contractors that have the skills that we still require, even with the reduction in the current workload. So we’re working through that,” he said.

The rear-wheel drive centre of excellence for the GM world, Holden was known to have been in the running to develop the replacement for the Buick Lucerne sold in North America, while GM was also understood to have considered building the next-generation Chevrolet Impala on the Holden-developed RWD architecture.

Mr Lindsay refused to comment on the global programs that have been canned and/or shelved. However, overseas reports have suggested that stringent fuel consumption standards in the United States have forced GM to abandon plans to create both the Lucerne and Impala using Australian-sourced design and engineering.

Furthermore, US industry journal Automotive News this week reported that design work for a number of GM brands outside North America was being transferred to Detroit in response to US vehicle programs being delayed or cancelled, which in turn has freed up US designers for other projects.

It cited the Impala and “an unnamed Buick sedan” as examples, and quoted GM design vice-president Ed Welburn, who said: “We have had a couple (of) studios where some projects have been cancelled. We have other studios that are totally overloaded. We just need to level that work around the globe.”

Studios believed to be swamped with design work are those working on GM’s new-generation small cars, in particular the Opel R&D centre in Germany and GM Daewoo Auto & Technology in South Korea.

“They can’t handle it all,” Mr Welburn said. “So some of that work will be done in North America.”

GM spokesperson Mike Albano was also quoted as saying that GM’s design centre in Warren, Michigan, was expected to eventually handle work for two vehicle architectures. He declined to identify those platforms, but said: “We have some work being shifted in process for small, subcompact (vehicles), that kind of category. I certainly could foresee more car programs coming into Warren as the market changes.”

Mr Lindsay insisted that design work at Holden was not being channelled into an overseas studio.

“The projects that have impacted us are ones that have either been cancelled or delayed – they were not projects being moved from here to elsewhere,” he said.

[ebxr8240]

Oh no more Koreans out of work... Sarcasm...

[ea90gl]

I guess this proves that the whole Australian car industry is in danger, not just Ford like so many like to think, I know this isnt the beginning of the end but for me it would be a shame to see either Ford or Holden cease to exist

[uranium_death]

Perhaps this should be front page news.

Australian car companies are producing great cars now, and the government needs to support them more by trying to shift private buyers towards them.

Of course, high petrol prices don't help. Fuelwatch was great.
We all watched it go up, and up, then down a bit. Still...bloody expensive.

[whales]

I heard from a reliable source that at least 170 Engineers are going for starters

[maccamom]

Originally Posted by whales

I heard from a reliable source that at least 170 Engineers are going for starters

More engineers to the dole queue :

Teson trims in Euroa in serious trouble, expected at this stage is that they will close. One more supplier down the gurgler.

[XR6_190]

Sad news this, However I have to ask the question, After all the negative press about Ford axing 350 odd jobs last week, why is this not all over the news?

[maccamom]

Originally Posted by XR6_190

Sad news this, However I have to ask the question, After all the negative press about Ford axing 350 odd jobs last week, why is this not all over the news?

Sorry, don't want to hijack the Holden thread but here is the Teson Trims info from The Age.

Car-parts firm on brink of collapse
Ben Schneiders and Paul Millar
September 5, 2008 - 9:53AM
Euroa's largest employer, which accounts for about 10% of the town's workforce, is on the brink of collapse as the car industry slowdown potentially devastates the Victorian town.

More than 100 jobs are at risk at Euroa and at least 15 jobs at Mitcham as decades-old car part supplier Teson Trims suffers from difficult market conditions and cutbacks at major players such as Ford.

It is believed other suppliers higher up the production chain are attempting to rescue Teson Trims - which manufactures car interiors - from collapse.

Strathbogie Shire Council mayor Gregory Carlson expected the future of the company to be resolved by Monday or Tuesday at the latest. But he was preparing for the worst.

"If the business does cease it will be early next week and it would have a tremendous impact on the town,'' Cr Carlson said.

"Obviously the whole thing is under threat, but we've had a few near-death experiences over the years, these sort of companies are operating on wafer-thin margins but it does not look good,'' he said.

He said local government officials and company representatives would met with Regional Development Victoria today to see what could be done.

Failure of the company would be the latest blow for Euroa which last year ran out of water and has suffered from the Hume Freeway bypass in the early 1990s which diverted traffic away from the town.

National Union of Workers state secretary Antony Thow, when asked about the company's speculated demise, said: ``We are hopeful that the company can continue. This is a very important employer in Euroa and the surrounding regions,'' he said.

Mr Thow called on support from the company's customers so Teson Trims could continue in manufacturing.

Management at Teson Trims did not return calls yesterday but were in talks with stakeholders yesterday.

In a 2002 submission to the Productivity Commission, the company said it was privately owned and had supplied car components for 60 years. The submission said it manufactured metal, fibreboard, leather and polymer based interior trim parts for the car industry.

Teson Trims is a third-tier supplier, providing products for other suppliers who then supply them to the big carmakers Ford, Toyota and Holden.
Nationals Member for Benalla Bill Sykes said the State Government should step in and do all it could to help a region that was already being hit hard by the drought.

"This company has been a really good in providing employment for the local people,'' Mr Sykes said.

According to 2006 census data, Euroa, with a population of just under 2800 people, has 1077 people employed and locals say Teson Trims is the town's biggest employer.

Besides the direct job losses, there would be flow-ons to other businesses in the town. IGA supermarket owner Colin Burton said a closure of the factory would devastate Euroa.

"Most of the businesses in the country are struggling anyway and the town is already struggling with 70 odd houses for sale,'' Mr Burton said.

He said the factory workers were major buyers in Euroa. "You always know when the factory closes as the shop becomes really busy,'' he said.

In recent weeks large job cuts have been announced at Ford, Boeing, Fairfax Media, Starbucks and at car parts suppliers PBR, and Unidrive.

There are fears many more car suppliers will go under after Ford's move to cut production by up to 25%.

Premier John Brumby yesterday said the state's economy was performing strongly - after the positive GDP figures on Wednesday - but warned the environment was still "very difficult''.

[charles_wif_xf]

Things aren't looking good for the local automotive industry...

[uranium_death]

Perception doesn't help.

People think that European cars are so damn good, while Australian cars are just plain crap.

I've sat in a 50k Mercedes and dare I say, our XF station wagon was roomier, more comfortable, and had a quieter engine.

I do not see the fuss.

[Nikked]

More than 100 jobs are at risk at Euroa and at least 15 jobs at Mitcham as decades-old car part supplier Teson Trims suffers from difficult market conditions and cutbacks at major players such as Ford

are these people to lazy to type more then four letters...

[Nikked]

I hope the government realises that it needs to do something, mayber a tax on asian imports, with the money going direct to the local industry, its sad to see the government not support the companies that have driven australia for the past 60 odd years...

[Wretched]

Originally Posted by Nikked

I hope the government realises that it needs to do something, mayber a tax on asian imports, with the money going direct to the local industry, its sad to see the government not support the companies that have driven australia for the past 60 odd years...

Why protect an industry that is failing due to its own mistakes?

While it isn't good to see people losing their jobs, the only people that can be blamed are the management of these companies.
Why couldn't they see the change in the market? The writing has been on the wall for god knows how long yet they still persisted in building cars which were declining in popularity. Other makes were able to adjust.

I don't want to see the government having to prop up sinking ships, if a company can't survive without handouts then what good is it?
The organisation I work for retrenched 11 people in one dept this week, why didn't it make the news? Why don't we get handouts? The company accepted responsibility for not adjusting to change quick enough and paid the concequence. They've developed a strategy with their OWN money to work towards a more profitable next quarter.

[4Vman]

Originally Posted by Nikked

I hope the government realises that it needs to do something, mayber a tax on asian imports, with the money going direct to the local industry, its sad to see the government not support the companies that have driven australia for the past 60 odd years...

You mean TARRIF protection of our local manufacturing industry?

[Daymoe]

Maybe the government could subsidize some costs towards locally built cars or something?

[Nikked]

Originally Posted by 90sFTW

Maybe the government could subsidize some costs towards locally built cars or something?

YES!

Originally Posted by 4Vman

You mean TARRIF protection of our local manufacturing industry?

yes, fix the one we have...it seems to effect the expensive cars only...

Although i cant see anything being done, not with our lousy rudder...

[Wretched]

Originally Posted by Nikked

yes, fix the one we have...it seems to effect the expensive cars only...

Although i cant see anything being done, not with our lousy rudder...

Because that will acheive a lot. :togo:

Increasing tariffs won't change the way Ford and Holden do things, they will still build the barges no one wants at the rate they used to buy them.
There are far better cars out there that suit peoples needs, so why should the buying public have to be penalised for wanting something different, better suited to them and most times of better quality?

The market has changed, Ford and Holden didn't.

[220XR8]

^ How right you are ^

[XR6_190]

Honestly I think as far a Ford are concerned, their biggest problem is Ford. As long as the Yanks are still building that ancient Crown Vic, instead of selling the far superior Falcon everywhere, Our falcon will always find development money hard to get. Not making the FG compatible for left hand drive was a big mistake IMO.

[uranium_death]

Originally Posted by XR6_190

Honestly I think as far a Ford are concerned, their biggest problem is Ford. As long as the Yanks are still building that ancient Crown Vic, instead of selling the far superior Falcon everywhere, Our falcon will always find development money hard to get. Not making the FG compatible for left hand drive was a big mistake IMO.

That isn't Ford Australia's fault.
They're governed by the US band.

It's sad though, definitely agree with you. The Falcon has become a truly great car, and if it was exported, the media would at least report it.
If an Australian car was able to replace or find a niche in the US market, that would be a story of great significance.

I hope that one day, the Falcon is made LHD compliant.

[azaxr8]

as i hate holden, im happy. But if ford die before holden. that will be the next car i own before this jap crap.... i would rather ride a push bike then own a bitsrmissing(mitsubishi) or shitaru

[PALE ALE]

The crazy thing is, the government continues to cut tariff's with one hand (allowing the Aussie market to open up, to import's). Yet, prop's Aussie manufacturer's up with hand out's with the other ?

[Redrum]

Ford cutting 750 jobs this year and a further 260 jobs next year. Where will this all end?

[Homer1]

Originally Posted by azaxr8

as i hate holden, im happy. But if ford die before holden. that will be the next car i own before this jap crap.... i would rather ride a push bike then own a bitsrmissing(mitsubishi) or shitaru

Yep, it's all the Japs fault for all this....they had the nerve to build their cars with more care and precision as well as planning ahead and adapting to the changing market. It's not Ford or GMs fault at all for failing to read the market trends and adapting themselves :

[Fev]

he's obviously never driven one.. atleast one that wasnt 10 years old anyway

[sleekism]

Originally Posted by Homer1

Yep, it's all the Japs fault for all this....they had the nerve to build their cars with more care and precision as well as planning ahead and adapting to the changing market. It's not Ford or GMs fault at all for failing to read the market trends and adapting themselves :

It's not that the Japanese have a better product it's simply that their workers receive less pay and conditions and have to work at a frantic pace. Most Japanese auto workers are casual temp labor.

Compare that to the Americans where the unions have them over the barrel therefore to be price competitive they have to cut corners.

Every time you whinge about poor plastics think at least the Aussie workers are paid a decent wage.

[zak88]

Originally Posted by sleekism

It's not that the Japanese have a better product it's simply that their workers receive less pay and conditions and have to work at a frantic pace. Most Japanese auto workers are casual temp labor.

Compare that to the Americans where the unions have them over the barrel therefore to be price competitive they have to cut corners.

Every time you whinge about poor plastics think at least the Aussie workers are paid a decent wage.

one thing certain, the japanese workers takes pride in what they do.

[buggerlugs]

Mate e-mailed me tonight to say that the water board he works for is ditching the Falcon and Commodore company Cars for Toyota Corolla and Camry 4 cylinder cars.....a sign of the times..........

[chich]

Originally Posted by sleekism

It's not that the Japanese have a better product it's simply that their workers receive less pay and conditions and have to work at a frantic pace. Most Japanese auto workers are casual temp labor.

Ah yes, so using cheap labour to build cars makes them reliable all of a sudden does it? Funny how a Corolla, Camry or any Honda, built with cheap casual temp labour as you say, can keep on going strong with 250,000kms on the clock whereas the Falconadore's are blowing head gaskets, leaking oil everywhere & are just about falling apart.

Its this sort of ignorance that has driven the local industry into the wall - head in the sand & she'll be right mate.

When the Japanese & Europeans were focusing on expanding their engineering knowledge, developing new manufacturing techniques & investing in new materials, the Aussies & Yanks sat on their high horses & preeched to the world that they knew best. They gambled & they lost big time - now its time for them to bend over & cop it sweet.

[XplosiveR6]

Originally Posted by chich

Ah yes, so using cheap labour to build cars makes them reliable all of a sudden does it? Funny how a Corolla, Camry or any Honda, built with cheap casual temp labour as you say, can keep on going strong with 250,000kms on the clock whereas the Falconadore's are blowing head gaskets, leaking oil everywhere & are just about falling apart.

Its this sort of ignorance that has driven the local industry into the wall - head in the sand & she'll be right mate.

When the Japanese & Europeans were focusing on expanding their engineering knowledge, developing new manufacturing techniques & investing in new materials, the Aussies & Yanks sat on their high horses & preeched to the world that they knew best. They gambled & they lost big time - now its time for them to bend over & cop it sweet.

Talking about ignorance, jumped in a falcon taxi cab lately? i'm sure they have a lot more then 250,000kms on the clock and they don't seem to be falling apart. cant say the same about the camry taxis...

Its all about regular servicing, look after your car and it will look after you. and also FYI the pre AU heads (the ones that did blow head gaskets) were actually a Honda design.

Its your kind of ignorance which is killing the local industry. people straight off think the Aussie product is of poor quality, and the imported stuff must be better.