Weatherill reveals he's been in talks with other car makers about replacing GMH

[BroadyFord]

Interesting...

Combet to head up Holden-exit taskforce

http://www.goauto.com.au/mellor/mell...257C44000B7E9B

FORMER union heavyweight Greg Combet will head up a special South Australian taskforce that will help workers affected by Holden’s decision to stop making cars in Australia.

The one-time industry minister – appointed after former prime minister Julia Gillard rewarded those loyal to her leadership spill that deposed Kevin Rudd from the top spot – will act as the state’s automotive transformation coordinator, earning $160,000 a year.

SA premier Jay Weatherill said the state’s Advanced Manufacturing Taskforce would initially assist Mr Combet, who would be responsible for coordinating assistance provided to car industry workers and parts suppliers.

Mr Weatherill said the state had established “a series of initiatives” to help workers and start work on transforming its manufacturing industry, and flagged he would meet with car-parts makers on Thursday to discuss the state’s plans for them.

“We are working closely with our Victorian counterparts and (Victorian) manufacturing minister David Hodgett will be attending this meeting,” Mr Weatherill said.

He said SA’s manufacturing minister, Tom Kenyon, would represent the state at a corresponding meeting in Melbourne tomorrow. Meanwhile, Mr Weatherill has revealed he is in talks with other car-makers who could step into the state after Holden’s exit.

"We've had discussions with large international interests about the possibility of car manufacturing in South Australia but I don't want to reveal those," Mr Weatherill said. Professor Goran Roos, the chair of South Australia’s Advanced Manufacturing Council, said earlier this year that the state’s industry could survive as a niche car-maker.

“There’s a debate in Australia that sometimes assumes that the only people who make cars are people with brands on the front of the car,” Mr Roos said shortly after he finalised a crucial cost-savings report for car-making unions based on Holden’s internal financial data.

“It’s not right. Most cars that people buy that are specialised versions of something ... it’s not made by (the car brand),” he told a conference in Melbourne.

“It’s made by a company called Magna Steyr and they do not make cars in volumes higher than 100,000 – they usually make them in numbers much smaller than that – and they are very profitable.

“So don’t tell me that we can’t make cars profitably in small volumes – but it is a different way of making cars.”

[stevz]

So they're taking the advice of some know-it-all academic who's had about as much experience in the automotive industry as I've had flying to the moon..
If multinationals like Ford and GM can't make a dollar in this country, I don't see how anyone can, especially some unknown niche car maker who will probably struggle to sell 5 vehicles per year.

[pottery beige]

gota be seen to do something.. we're about to have fifty billion bums on the rock n roll here..

[Polyal]

They should tool up something to make cabs like the Poms do, who builds them?

Make some EV/Solar freak car that runs on hippy tears.

[Express]

Originally Posted by stevz

So they're taking the advice of some know-it-all academic who's had about as much experience in the automotive industry as I've had flying to the moon..

Who are you talking about?




.

[stevz]

Originally Posted by Express

Who are you talking about?

Did you read the article?

"We've had discussions with large international interests about the possibility of car manufacturing in South Australia but I don't want to reveal those," Mr Weatherill said. Professor Goran Roos, the chair of South Australia’s Advanced Manufacturing Council, said earlier this year that the state’s industry could survive as a niche car-maker.

“There’s a debate in Australia that sometimes assumes that the only people who make cars are people with brands on the front of the car,” Mr Roos said shortly after he finalised a crucial cost-savings report for car-making unions based on Holden’s internal financial data.

“It’s not right. Most cars that people buy that are specialised versions of something ... it’s not made by (the car brand),” he told a conference in Melbourne.

“It’s made by a company called Magna Steyr and they do not make cars in volumes higher than 100,000 – they usually make them in numbers much smaller than that – and they are very profitable.

[stevz]

Can anybody make sense of this statement? I certainly can't.

“It’s not right. Most cars that people buy that are specialised versions of something ... it’s not made by (the car brand),” he told a conference in Melbourne.

[Road_Warrior]

Originally Posted by stevz

So they're taking the advice of some know-it-all academic who's had about as much experience in the automotive industry as I've had flying to the moon..

As opposed to know it all academics that have never had a real job in their lives and have been concocting bad trade and industry policy for government for a generation. How about we use some of that "academic know how" to help us evolve our car industry instead of letting the free trade sycophants get their way.

[jpblue1000]

Originally Posted by stevz

especially some unknown niche car maker who will probably struggle to sell 5 vehicles per year.

I wouldn't call Magna Steyr an unknown manufacturer and certainly not niche. the list of cars they make or contribute significantly too:
Mercedes-Benz G-Class – since 1979
Mercedes-Benz SLS AMG (painted aluminium body) – since 2009
Peugeot RCZ[3] – since 2010
Mini Countryman – since 2010
Mini Paceman – since 2012
Former
Voiturette (1904)
Alpenwagen (1919)
Puch 500/650/700c/126 (1957-1975)
Haflinger (1959-1974)
Pinzgauer (1971–2000)
Volkswagen Transporter T3 4x4 (1984–1992)
Volkswagen Golf Country (1990–1991)
Audi V8L (1990–1994)
Jeep Grand Cherokee ZG, WG, WJ (1994–2004)
Mercedes-Benz E-Class W210 (1996–2002) (all-wheel-drive)
Mercedes-Benz M-Class W163 (1999–2002)
Mercedes-Benz E-Class W211 (2003–2006) (all-wheel-drive)
Saab 9-3 Convertible (2003–2009)
BMW X3 (2003–2010)
Chrysler 300C (2005–2010)
Jeep Grand Cherokee WH (2005–2010)
Jeep Commander (2006–2010)
Chrysler Voyager (July 2007–December 2007)
Aston Martin Rapide (2010–2012)
Car components:
Mercedes-Benz SLK vario-roof assembly – over 500,000 produced since 1996
Opel Astra TwinTop convertible roof assembly – 2005–2010

and they were to build porches cayman and boxter until VW bought Karmann

JP

[DJR-351]

Originally Posted by jpblue1000

I wouldn't call Magna Steyr an unknown manufacturer and certainly not niche. the list of cars they make or contribute significantly too:

I think you will find most Aussies have never heard of them or the concept....

[jpblue1000]

Originally Posted by DJR-351

I think you will find most Aussies have never heard of them or the concept....

Yes but its those same aussies who claim anyone who doesn't agree with them as ignorant so they need be informed.

JP

[grey_esp]

Originally Posted by stevz

So they're taking the advice of some know-it-all academic who's had about as much experience in the automotive industry as I've had flying to the moon..
If multinationals like Ford and GM can't make a dollar in this country, I don't see how anyone can, especially some unknown niche car maker who will probably struggle to sell 5 vehicles per year.

Its not profitable to build budget cars in Australia at low volumes, but if a niche manufacturer were to set up and build premium quality vehicles where the profit margin per unit is a lot higher than it would become viable. We have the skill set here to build quality cars and I personally think its a great concept. And if the gov pour in as much funding as the have supplied to the other 3 over the past 50yrs Im sure it would become an attractive business case.

[Road_Warrior]

Originally Posted by grey_esp

Its not profitable to build budget cars in Australia at low volumes, but if a niche manufacturer were to set up and build premium quality vehicles where the profit margin per unit is a lot higher than it would become viable. We have the skill set here to build quality cars and I personally think its a great concept. And if the gov pour in as much funding as the have supplied to the other 3 over the past 50yrs Im sure it would become an attractive business case.

Well, look at the volumes Performax are talking about - 600 units per year. Not per month, per year. They're now calling themselves a manufacturer because of the extent of the conversion work they do - converting US "pick up trucks" to RHD and charging up the **** for them. So it is obviously viable in low numbers, provided you have the right product.

[bobthebilda]

Originally Posted by jpblue1000

Yes but its those same aussies who claim anyone who doesn't agree with them as ignorant so they need be informed.

JP

But theres a very important concept to remember with the Magna Steyr method. They sub contract build in countries where its viable to produce cars, ie there are many other car companies building there also. Jay wannabe just doesnt think he has to come up with a viable concept because its only tax payers money.

[neptune blue]

No ones going to set up shop here to build cars unless they can pay the workforce 20% less than they used to. Like the AMWU is going to sign off on that
It's all just hot air and a show : as already posted to be seen to do something and some Labour Party cronie gets $160k pa to attend meetings & lunches

I'm I sounding a little cynical ?

[Flat Top]

the modular assembly line process is a concept that doesnt suit current assembly line set ups. Holden have 2 lines (the vectra line and the commodore line) the reconfiguration would take a year to swap over . Local suppliers supply modules Fronts/rears etc. Smart cars are built this way and its a concept that Magna seem to have also adopted.
Magna are a huge components supplier based in Canada and have the capability to do something. They just need customers???

[DJR-351]

Originally Posted by jpblue1000

Yes but its those same aussies who claim anyone who doesn't agree with them as ignorant so they need be informed.

JP

I wasn't pointing the finger at anyone with my post, I was pointing it at the majority, ignorant or otherwise the concept will be alien.....

[The FOMOCO]

Originally Posted by neptune blue

No ones going to set up shop here to build cars unless they can pay the workforce 20% less than they used to. Like the AMWU is going to sign off on that
It's all just hot air and a show : as already posted to be seen to do something and some Labour Party cronie gets $160k pa to attend meetings & lunches

I'm I sounding a little cynical ?

I think you hit it right on the head there full of it 20% less is probably right it will get them people off the rockn roll iff it ever happens

[burnz]

Originally Posted by neptune blue

No ones going to set up shop here to build cars unless they can pay the workforce 20% less than they used to. Like the AMWU is going to sign off on that
It's all just hot air and a show : as already posted to be seen to do something and some Labour Party cronie gets $160k pa to attend meetings & lunches

I'm I sounding a little cynical ?

rumour has it, that ford, merc, beemer have expressed interest in holdens engineers... (work OS)
so another maker possibly german may setup shop here... (wishful)
as all of holden will be completely dismantled no badge swapping nothing.

[Nikked]

Should tempt Tata here, let them build Jaguars and Rovers here...

[DanielXR8]

I think what is missing here, is most people have forgotten its not just the assembly line foks who loose their jobs. Shortly several hundred highly skilled engineers with years of experience in rear wheel drive and front wheel architectures and making plants work with mixes of vehicles are looking for a job. You also have several hundred more who are experts in everything from logistics, support and sales looking for work. Highly specialised car guys with in some cases, decades of projects they have worked on.

If I was the Chinese and wanted to move into new markets and accelerate how I did that, I would find the pending closure of Holden and Ford facilities in Australia and the staff I could get because of that highly attractive. With Holden I can buy the test facilities and even the empty plant I can then setup for production. All this with South Australia and Victoria falling over themselves to help me. Heck the Federal government is scared witless of upsetting the Chinese, so no problems there either.

Even if I had to make a small number of cars in Australia to keep the locals happy and maybe even make a loss on them, that doesn't matter. I could save billions of dollars and years of getting up to speed on platforms I have no experience in. I could also then use the economies of scale back in China to produce similar cars, using the same peoples skills and talents.

Want a Chinese competitor for the Mustang or slash years of the time it would take to compete with European brands? Want a good solid car that can undercut the American designs by thousands in their own market, but actually steers and drives better? I ask you -who could deliver all of that quicker and better, than ex HSV, Ford and Holden staffer?

[FormulaFG]

I don't know why Weatherill is bothering. Come March it will be Steve Marshall's mess to clean.

[Agile]

This has nothing to do with building cars in Adelaide, other than using the illusion that it is possible. It has everything to do with a state election in March 2014, Will not happen.

[Agile]

Originally Posted by DanielXR8

I think what is missing here, is most people have forgotten its not just the assembly line foks who loose their jobs. Shortly several hundred highly skilled engineers with years of experience in rear wheel drive and front wheel architectures and making plants work with mixes of vehicles are looking for a job. You also have several hundred more who are experts in everything from logistics, support and sales looking for work. Highly specialised car guys with in some cases, decades of projects they have worked on.

If I was the Chinese and wanted to move into new markets and accelerate how I did that, I would find the pending closure of Holden and Ford facilities in Australia and the staff I could get because of that highly attractive. With Holden I can buy the test facilities and even the empty plant I can then setup for production. All this with South Australia and Victoria falling over themselves to help me. Heck the Federal government is scared witless of upsetting the Chinese, so no problems there either.

Even if I had to make a small number of cars in Australia to keep the locals happy and maybe even make a loss on them, that doesn't matter. I could save billions of dollars and years of getting up to speed on platforms I have no experience in. I could also then use the economies of scale back in China to produce similar cars, using the same peoples skills and talents.

Want a Chinese competitor for the Mustang or slash years of the time it would take to compete with European brands? Want a good solid car that can undercut the American designs by thousands in their own market, but actually steers and drives better? I ask you -who could deliver all of that quicker and better, than ex HSV, Ford and Holden staffer?

You make a lot of sense

[tweeked]

Here comes a new Delorean factory complete with a monorail for the workers to travel to work on.

[Express]

Originally Posted by stevz

Did you read the article?

Yes I read the article and didn’t believe you could possibly be talking about Göran Roos.

Apparently he’s recognised all over the world as a world leader in business model innovation in manufacturing and you rubbish him because you are?
Sorry what is it that you are recognised as a world leader in again?



.

[danzvtil]

Goran Roos said on radio this week that the Magna Steyr model wouldnt work here and that he and the Aust govt had spoken to them over the last few years, they said the same thing more or less.
Jay just needs to be seen to be ticking boxes for the state.

And if another poster says that we need to "build Taxis" ill put my fist thru the screen.The taxi market is tiny in volume terms, and they dont generally buy brand new, they buy second hand vehicles to destroy in order to make them suitable for taxi duties.

I suspect that holden will backpedal on replacing the commodore with an import, mitsubishi and ford havent fallen over themselves to replace their large cars with an imported version.

[danzvtil]

Goran Roos said on radio this week that the Magna Steyr model wouldnt work here and that he and the Aust govt had spoken to them over the last few years, they said the same thing more or less.
Jay just needs to be seen to be ticking boxes for the state.

And if another poster says that we need to "build Taxis" ill put my fist thru the screen.The taxi market is tiny in volume terms, and they dont generally buy brand new, they buy second hand vehicles to destroy in order to make them suitable for taxi duties.

I suspect that holden will backpedal on replacing the commodore with an import, mitsubishi and ford havent fallen over themselves to replace their large cars with an imported version.

[zilo]

The future is electric vehicles.

Is that niche enough?

[1TUFFUTE]

Originally Posted by grey_esp

Its not profitable to build budget cars in Australia at low volumes, but if a niche manufacturer were to set up and build premium quality vehicles where the profit margin per unit is a lot higher than it would become viable. We have the skill set here to build quality cars and I personally think its a great concept. And if the gov pour in as much funding as the have supplied to the other 3 over the past 50yrs Im sure it would become an attractive business case.

Problem is the money we gave the auto industry was seen back ten fold by sheer numbers working in the industry. No niche company can provide that. That's why the now niche Australian products are leaving.well sort of..