Holden axes 531 jobs at Melbourne plant
June 6, 2008 by George Skentzos
GM Holden has confirmed that it will cease production of its four-cylinder Family II engine at the end of 2009, a move that will potentially cost more than 500 jobs.
At a media conference this afternoon (Friday), GM Holden Chairman and Managing Director Mark Reuss said there was no ongoing market for the engine, which has been in production for 27 years, and the facility would close in the last quarter of next year.
The decision means the 531 workers currently employed on the production line, and in a related iron foundry that makes the iron for the Family II’s cast-iron block, will be redundant.
Mr Reuss said GM Holden would work with the employees to redeploy them elsewhere in the company if possible.
However executive director of manufacturing, Rod Keane, said;” It is a reality, however, that some people will no longer be required.”
Mr Reuss, said today: “Every product has a lifespan and Family II is an older cast iron engine which has been around now for 27 years. It has served GM well but is now coming to the end of a very long and successful life.
“With reducing customer demand, recent years have seen the Family II plant running at less than 50 per cent capacity.
“Our remaining markets for this engine are all overseas and our export customers have advised us that with newer and more technologically advanced four cylinder engines available within GM, they do not require production from GM Holden beyond the end of 2009.”
Mr Keane, said: “Our employees have been aware for some time that this product was reaching the end of its technological life. Even so, this is an extremely difficult announcement to make today as people and their families will be affected.
“We have exciting plans for our Global V6 plant and one of our aims will be to grow this part of our business to absorb some of those who might be impacted by this decision.”
GM Holden employs more than 6500 people of which 3100 are based in Victoria. The majority of those work in Port Melbourne which is home to GM Holden’s engine operations, design and engineering centres and head office.
The production of the Family II engine has dropped from a high of 1500-a-day to about 500 and it hasn’t been used in a local product since the 2000 Holden Vectra.
Mr Reuss said GM Holden had various engine technologies available to it including hybrid power and he said that cylinder deactivation active fuel management would soon be available in the Holden Commodore
Statement from VACC
VACC considers today’s confirmation that Holden plans to end production of four cylinder engines at its Melbourne operation, as regrettable but not necessarily a portent.
“It is always sad to hear of possible jobs losses, but the knock-on effects, at this stage are uncertain,” VACC Senior Manager of Government and Public Affairs, David Russell, said.
“The end of production of the Family II four cylinder engine is the end of an era. Holden engine production has been a huge export success story, bringing into the Australian economy more than $500million in export dollars annually.
“It is not widely known that Holden engines can now be found in Alfa Romeo, Saab, Opel, Isuzu, and others brands within the global GM stable. The loss of four cylinder production leaves Holden engine production to its V6 variants only.
“Of course, this news may indicate that Holden Australia has no plans in place for a small, local model, such as Ford has announced with the production of the Focus.
“While job-losses are regrettable, it is too early to say whether this announcement will add to the pressures facing the local vehicle and automotive component manufacturers.
“The high dollar makes it very tough for all exporters.
“With Mitsubishi gone, and the whole automotive manufacturing sector under review, many will be waiting on the Bracks’ Review outcomes for a clear sign of what the future holds for the industry.
“The automotive manufacturing sector is Australia’s largest producer of elaborately transformed manufacturing product. It gives enormous momentum to the Australian economy and provides a critical ‘capability mass’, in skills, engineering and R&D, for a broadly diverse, highly technological industrial base.
“This announcement by Holden is confirmation of the global nature of the industry. It sends a signal to the State and Federal Governments that a far-reaching blueprint for the future is needed if Australia is to retain its competitive position as a smart economy,” Mr Russell said.
Print it: 
oh and by the way fan of being a wanker, i actually own a 1 year old toyota hiace and i do not own a holden of any kind. I’m very aware of how good it is to own something that just works, does whats its told without arguments day in day out. Its fantastic, but that doesn’t mean i go around trying to jam it down peoples through like a religeous fanatic.
If anyone else is suffering shear weakness, I can put you in touch with a bloke who can sell you a new set.
Richo – Holden and Ford freaks spent many long generations ramming thier crap down everybody elses throats but that was OK … wasn’t !!
Now that the boots are on other feet, all of a sudden it is not so pleasant so then start whinging, crying and complaining.
Like i said … you people are pathetic and weak.
Lets take Bavarian and her ‘runway circus’ for example – go to another site (The Motor Report) and while most other bloggers were resonable in thier conversation, the circus rocks up and start talking utter crap as they do.
No-wonder i love challenging you idiots because it removes la, la, land out of the equation and replaces it reality.
Most Holden and Ford people don’t like it because all of a sudden, the sky isn’t so blue !!
nothing like patting yourself on the back, hey?
When has Dingo had a reasonable conversation with anyone that didn’t agree with him……….Every on this site is an idiot to you is seems cause almost no one agrees with your dribble.Hard to except that a woman takes you down is it!
Your interpretation of why people left the site is yours only and not the truth as usual,just a morph of what you want to happen.
When are you going to stand back long enough and see you have no one that agrees with you or even attempts to get on with you anymore cause you ramming your Toyota Gospel down everyones throat and we’re sick of choking on it. Like anything you cant stomach it just becomes vomit in the end and thats what your peddling as usual!
Wheres the answers on times for the TRD Drag car??? Still waiting and what is the fastest in its class of 3 only in Australia,I love the way you hide from one post to another changing the subject. You lost big time on this thread so now you again start insulting people says a lot about you doesn’t it…mmmmmmmmmmm ouch! Richo get ready to kick the record player hes about to start again.
And your wrong dingo once again. On TMR Bavarian Missile Golfschweinn Myself and the rest of “the Circus” actually comment on the car or whatever the article is about.. that
Its you that comes on and hijacks the discussions to try and make it so that we all end up talking about your beloved Toyota which appears to be all you know about in relation to cars.
I mean your first comment on TMR – which was deleted with in 2 minutes [unlike CA] was: “So this is where you have disappeared to because you can’t handle the truth… lets cut the crap about Toyota and start talking about reality shall we.
As usual you were straight on the offensive with an attack what’s more the article had nothing to do with Toyotas it was about 1:18 Scale model cars.
Sorry Boring Cars … didn’t see your question of the TRD Drag Car.
I will gladly re-state the specifications and you can clarify them on the ‘TRD Australia’ website if you so wish or simply by googling ‘Tony Wedlock’ or ‘TRD Aurion DragCar’
The car is infact a product of TRD USA inconjunction with a drag racing organisation in the States that i have forgotten the name of and utilises a twin turbo charged 3.2 L6 from the Supra … so ‘YES’ it is a Toyota engine co-developed for drag racing by TRD USA.
Now that the car is in Australia, TRD Australia will participate in the mechanical, technical and administrative support to assist Tony Wedlock and his ‘Ultimate Motorsport Team’ whom infact own the car.
Pro FX Extreme is a new class of Drag Racing in Australia and dictates the use of a 6cyl engine that must equal the badge. Basically – if it has a Toyota badge on the car then it must be powered by a Toyota engine. This car has been specifically engineered to compete within the new class. I believe a second example will be imported in duetime.
Well … thats what was reported sometime back anyway.
The car produces 1800hp (1300kw), accelerates from 0 – 100 km/h in less then 1 sec and has an offical 1/4 mile time of 6.5 secs
Todate i have seen 2 times on YOUTUBE … the first was 6.94 secs and the second 6.45 secs
I will be interest to learn what times it ran at Willowbank weekend just passed and considering the weather conditions were cool – i certainly expect the car has matched it’s expected time of 6.5sec ot there abouts.