Hot $ won’t stop Holden exports
May 21, 2008 by Paul Maric
With half its annual production now going overseas GM Holden has said that the high value of the Australian dollar won’t affect those sales.
- David Twomey
Speaking in Melbourne to a media briefing General Motors Group vice president and president GM Asia Pacific, Mr Nick Reilly, said that despite predictions the Australian dollar could achieve parity with the US dollar, this would not affect the export programs in the immediate future.
Mr Reilly said it was unlikely that the countries taking product from Australia would change that source of supply because of the high costs in setting up similar production elsewhere.
“If you’ve got product that you only make here and it’s wanted in markets around the world then it’s very unlikely that those markets are going to invest in making that product,” he said.
However, Mr Reilly did say that if the Australian dollar continued to strengthen then it was possible that the volume of exports would decline because of the higher prices.
“What I can say is that it’s a good program, even at today’s exchange rates, but if the Aussie dollar goes up by 25 per cent, then I can’t tell you what we might have to do.”
GM Holden currently exports to Europe, the Middle East, South America, Asia and the United States.
Mr Reilly said that demand for the recently released Pontiac G8 version of the Holden Commodore in the US was running well ahead of supply.
He said the vehicle had been well received by both the local media and customers and he predicted a shortage of supply in the short term.
“We have capacity to increase production at Elizabeth (in South Australia) if needed but it’s a good situation when you first launch to have some pent up demand,” he said.
Mr Reilly said GM Holden would wait to see how strong ongoing demand was before making any decisions of increased
production.
The company will also begin exporting a Pontiac version of the Commodore utility to the US later this year.
Mr Reilly said the strong Australian dollar was also threatening to impact on the job market in Australia as resource industries competed heavily for workers and forced wage rates higher.
He warned also that the dangers of cheaper imports, especially in the car industry, meant that there was always a danger of losing manufacturing industries in the short term.
“You don’t want to find that five years down the track the resources boom turns around and the country needs to fall back on manufacturing, but finds that those industries have already shut down.”
“We need a manufacturing sector but it is under real threat from both exchange rates and labour rates,” he added.
Print it: 
Hmmm…. the dollar wont stay this strong forever.
stop complaining about the exchange rates and start bulding cars people (specially in our Asian region) wants! You dont hear the Germans complaining abt this despite their much superior Euro value.
Time for GM to realise the latent ability of Australian designers and manufacturers. Bring back the Torana! The next gen Focus is already confirmed for production here, so that shows Ford USA is more on the ball. Now if only someone could build a CR-V sized SUV here, we’d be set for awhile.
Andy,
Ford may well build the Kuga compact SUV next to the Focus.
Anyone else pick up on the snipe at Toyota:
“If you’ve got product that you only make here and it’s wanted in markets around the world then it’s very unlikely that those markets are going to invest in making that product”
IE. Camrys are built all round the world and if Aus exports become unprofitable the Toyota will just pull the pin and source from elsewhere.
It will be interesting to see if the Yanks will still “love” the G8 when it gets more expensive.
Im hoping it will Crouchy ….95c thats great for importers /manufactures off shore. Wasn’t long ago it was worth 50c so let us have our turn a little longer thanks.
Sucks to be an exporter bet Ford are happy they haven’t started yet here in OZ. Poor old Toyota though same boat as Holden how sad am I about that….
LoL, subtle.
G8 is only like US$35,000, this increase in exchange rate is like our Luxury car tax hike, prolly adds abt 2000-4000.
A US$39,000 for a V8 that matches Bimmers and Mercs? I still see alot of US punters handing their defaulted mortgages for that. =P
Roundabouts and swings for GM import/export between Australia and the USA – it doesn’t really matter what the exchange rate is for intra company stock transfers. This is especially so if the value of transfers is the same in as out. Perhaps GM aims for this balance??
As for exports to non USA countries, their currencies are also up against the $US, so the difference between us and them is less of a problem. Doesn’t matter that many of the transactions are done in $US either, since that’s just a constant conversion factor between, for example, the Pound and the Aussie dollar.
Yesterday whilst driving past the Holden Factory [who are considering plans fr expansion] I saw at least 8 Toll Car Transporters Loaded up with Pontaic G8 sedans bound for the USA where demand is so high that it takes on average 3 days to sell the car off the showroom flaws
There was also a truck with Statesmans bound for the Middle East.
So I would say things are pretty good at Holden
The Middle East is a fairly big market for Toyota… Nearly every Taxi over there is a Cumry. However; a couple of years ago the SS Commodore and the Statesman won the Middle East Car of The Year Award a couple of years ago
So whilst the Sheiks etc may be a passenger in someone elses Toyota they prefer to drive a Holden
Quote: [Guess Who] – Holden and Toyota both exhibiting a healthy export market is exactly what is maintaining the viability of thier operations more so then Ford and any thought otherwise is just plain stupid…. In fact, it is down-right ignorant.
Ignorance – you’d know all about that wouldn’t you?
Swings and roundabouts for Holden.
They are insulated to a great degree from exchange rate variances on the count of Engines & Gearbox’s being imported (yes that includes the v6. Block and heads are for Mehico, cee) Exchange rate goes up imports get cheaper.
Also, The price of the GM sourced imports would be priced to transfer profits back to the good ol USA parent. So their is margin in there for them too.
Toyota have been taken to task by the ATO about siphoning off profits (transfer pricing) via charging the Australian Subsidiary inflated prices for its imported range. Good australian corporate citizen?
Toyota still exports more vehicles than Holden, despite only making 1.5 car models. (as opposed to Commodore SWB, LWB, HSV, V6s, V8s)
Dingo (etc etc etc) says “..engineering of the Aurion..”
Nope! The Aurion or more commonly known elsewhere as the Camry V6 was engineered in USA. All Toyota Aus did was a styling exercise. SFA engineering there.
Toyota also imports more vehicles than anyone else JW. it also has been fined by the ATO for deceptively over pricing the cost of its imports so it pays less tax in Australia.
One can imagine it also underprices its exports to do the same.
Are you DINGO BAT or Toyota Paul???
Love to change names, don’t you.
Dingo, NOPE! The Aurion is a USA engineered V6 camry with a minor restyle of a few exterior panels. The Aurion is effectively mechanically identical to the USA Camry, including the 3.5 liter (sic) V6.
Did you really think that you could throw in the red herring of an invented different engine size?
The only re-engineering was limited to the minimal Australianising of the suspension tune.
And no, I don’t either need nor want a commodore history lesson, only blind Holden loyalists fail to recognise the dodgy origins.
Quote: [Dingo]Wheelnut … you just displayed ignorance by stating that everybody prefers to drive a Holden in the Middle-East.
Correct me if i am wrong but Commodores are every bit as much as a Taxi in the Middle East as the Camry not to mention Toyota exports by greater numbers to the market.
So, yes … you know about ignorance.
Read what I said [in full]again Dingo.. I didn’t say that EVERY taxi in the Middle East is a Toyota.. Nor did I say that EVERYONE in the Middle East drives a Holden just like not everyone in Australia drives a Toyota – no matter how much you would like us to.
All I said was that as both the SS and the Statesman had won ME COTY awards they must be damn good cars because those in Dubai didn’t make their money by buying things that are of poor or inferior quality.. I mean the Holdens are competing against Aston Martins and other premium luxury performance cars and they Won…. as I said Not Bad
just ignore him guys.
you know you all can be more of a man than he is, so just do what i do and dont even read any of his posts. that way it eleminates temptation to respond
I second motion to cull Dingoes comments and not even respond to them as does “NOT” deserve a glance!
Dingo,
Thanks for the admission.
However painting either the “local” Camry or the Aurion as being anywhere near re-engineered is stretching it. Both are just minor Australianised versions of the USA designed Camry (4 or 6 cyl).
Criteria for those awards doesnt include reliability. Surveys highlight Toyota are on top in this department. Afterall whats the ppoint of a car with performance when it only lasts half the distance of a lesser car.
P.S Better watch that temper Wheelnut
wheelnut,
why are you responding to a man that cant be reasoned with?
dont even read his posts!!!!!!!!
How can they, TP? They are awarding newly released cars. If they’re rubbish, word will get around.
The Middle East loves big, brassy Chevs with V8s, whether it’s a Lumina SS or a Caprice.
Only Holden can deliver.
Thats all Im saying Golf… yet it won, but that doesnt mean it truly is the best car. Time will tell overall. Pointless having 1000000000000kw if it lasts 1 week.
TP,
and on the other hand its pointless having a car that lasts for 1000000000000k’s if you dont enjoy driving the thing.
if you are going to spend 70K for a Vehicle, wouldnt one demand a bit of enjoyable/comfortable driving?
Ummm Id prefer a car that lasts thanks AndrewM! $70k aint pocket change for me, a cars first priority is to run and actually do what it was design to, get from point A to point Z. Then performance comes into play. Obviously extreme examples, its about balance in the real world.
Too right Andrew M. I guess that explains why I can count on one hand how many Toyota’s see in taxi ranks. Then if we look at other areas in the world; where Toyota is not as prominent we see many taxis as trying to get dominance in areas where Toyota not liked by general buying public. NO NAME backs this up and would rather listen to real people and real comments instead of real hairy fairy Big T responses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
My spam word was “Lotus”, Lots Of Trouble Usually Serious.
These cars would appear near the bottom of any mainstream-style reliability survey. Yet people buy them. I guess they must be car enthusiasts, not consumer enthusiasts.
One will never understand the other.
NM,
i think TP missed my point.
if people spend a minimal amount ie 20-30K then its for “just a car”
if they are spending 70K, its because they are looking for something more than “just a car”.
people who purchase in the 70K bracket care more about performance, handling and comfort etc
or in summary, they are more into the car
Gotta agree hey ANDREW M. It is what sets it apart from others as not everybody wants xenon front headlights. My Falcon ute is a marvel, cheap as to run, faultfree and gets worked. My sparky has a Toyota Hiace and is step up from last model….he has few issues but it looks the goods. Few Hyundai’s getting around and from what I heard and reading in HIA literature; they are shaking market up and think to quote a polly from years ago “To keep the b*stards honest” is my response to the Hyundai vans!
And if I step up next car; in 70K bracket. Either Mercedes or Peugeot; something with pizazz and razza mattaz. Not watching paint dry boring shyte!
NM,
and the Pregio did the exact same thing a few years back.
every one was starting to buy the Pregio van because it was half decent and you could get it in a diesel at a reasonable/great price compared to the Hiace.
yep agree the new hiace does look the part though.
apparently toyota bought out the Pregio because it was stealing its market share
so now its the hyundai I Load’s turn to unsettle the Hiace?
whats the cargo size of the hyundai?