Holden responds to industry collapse speculation
April 15, 2009 by George Skentzos
A spokesperson from Holden has issued a passionate response to recent comments made by Clive Matthew-Wilson, editor of the car buyers’ Dog & Lemon Guide, in regards to speculation that the Australian car industry is poised to collapse.
This genuinely sincere statement is far more profound than we have come to expect from a media release, which is why we have decided to reproduce it here verbatim.
STATEMENT IN RESPONSE TO AUTO INDUSTRY SPECULATION
What gives one person the right to call ‘time’ on an entire industry with more than 60,000 jobs at stake? What data is he basing his views on when happily sounding the death knell for Australian car makers and employees?
We’ve never had a request from this individual to speak with our executives, to discuss our company business plans or review the business case for our new fuel efficient 4 cylinder small car.
This is shameless self-promotion at the expense of our industry, our organisation and our employees.
For the record, Holden has had the best selling car in the country for 13 consecutive years and we’re not going anywhere. We’re in there fighting in a pretty tough global environment and we won’t be discouraged by bystanders.
Background
Automotive manufacturing is the largest manufacturing sector in Australia. It supports about 64,000 families and puts $5 billion in wages back into the economy each year. Holden contributed $500 million in wages last year and invested $420 million in research and development.
Holden recently announced that it will produce a second car line based on General Motors’ global Delta small car platform. GM’s own viability plan highlighted that the introduction of the second car line puts Holden in a long term viable position.
We believe that the Australian Government’s recently announced $6.2 billion industry support package will be a driver for innovation at Holden and other Australian manufacturers across the next decade.
Holden and the Australian automotive industry have a lot to be proud of. It’s worth fighting for.
END OF RELEASE
Print it: 
one more joke from front man.
commodore and falcon purely based on fleet market.80% of them went to fleets at rock bottom prices.do not just put your face down into the sand and said i don’t see anything.is it so hard to accept the true?the best one will survive but dinosaur days are numbered.
“”The Fact”" when are you back at school dude ?
Where on earth are you coming up with theses percentages quotes ?
You know your own opinions aren’t Fact dont you ,we all do!
Regardless of what Holden/Toyota/Ford say, I would hate to be the idiot that wrote the drivel about Australia’s Car makers going belly up. Even if this guy is right, to be the one that 60,000 employees can focus their anger on must do allot for his ego if it all ends badly.
I did think that too many people are almost looking forward to the day that Australia’s Car industry dies. Sure they haven’t adjusted to the demands as quickly as others, but for crying out loud people. We are talking about people’s jobs and livelihoods. Some of the responses really underline the ignorance and insensitivity that we as a nation are showing. No wonder I have such a big job dealing with youth in Australia who only give a damn about themselves, and to hell with anyone else.
I hope that the measures put in place by Holden/Toyota/Ford can bring them back into profitability as soon as possible. And that those whose futures are being smeared all over our news headlines get the last laugh.
Time to unload again. To DLR1, The Salesman, Lukass, Sean, BM, Millatime, Front Man, Minnow, Glenn, you guys are great. I have been fighting this battle for weeks now. I hope and prey Holden don’t go under (or Ford or Toyota OZ). My father worked for Holden for 40 years. My entire working career has been in the auto industry both for the manufacturers and in component supply. The 60 odd thousand employees that Holden refers to is a bit light on, its closer to 100′000 if yiu start at the mine sites and end at the dealerships. It is one of the largest exporters (second only to mining) we have. It earns billions of dollars for the Tax Man in all sorts of ways. Where will those tax dollars come from? Think about your current tax rate then imagine what will happen when we blow a several hundred billion dollar hole in it. It is a massive employer and trainer in all sorts of trades. If you look at what happened to Dandenong when Holden and Toyota closed the assembly plant (22% unemployment anyone) and imagine that replicated in Broadmedows, Altona and Elizabeth.
A lot of fools have critisied the Commodore on this blog. Have any of them driven one? They call the Commodore and Falcon dinasours. Why? I drive a VE Sportswagon. The only part that is a bit short on tech is the auto. Other than that its right up to date. 1800kgs, large 5 seater car, averages 10.8 to 11 l/100ks around Melbourne and 8.0/100 on a good run. To me thats all very impressive. To me if Holden goes Ford and Toyota will follow suit because the component supply industry will collapse as will the local toolmaking industry. Then there is no going back. We build world class cars (proven by our great export success with Commodore and Camry/Aurion plus Holden 4 cyl and V6 engines). The cars stack up well with any import that has the same features, engine size, physical dimensions. The quality is spot on.
One last point I will make is that it is pretty well acknowledged by importers that if the local industry goes, import prices will increase as the domestic industry keeps prices down.
Sorry Frontman, I should have been more clear. I meant why would you buy the car that Holden seem to be gambling their future on (the small car that they are making) over an i30 or a Focus or something like that. The Commodore is completely pointless. Why wouldn’t you just buy a nice Mondeo? It’s not as if the Commodore has good engines, quality or dynamics and it’s not fun to drive so why wouldn’t you buy something more economical, as if not more powerful, better quality, just as spacious. There’s no point to anything Holden do or are doing. I wouldn’t have said that three years ago but the times have changed.
I’m amazed at the vindictiveness of so many posters against our own products. Why such hostility?
Do you really want to see all our resouces, all our R&D experts lost? Should all our expertise go overseas to benefit other manufacturers?
Do you really think all we should do In Australia is dig the ground so other can add value to it overseas and then sell it back to us?
Why not get behind our country mates and hope they deliver the right products to take us all forward.
don’t blame us….not our decisions to produce these dinosaurs….you ask yourself…would you buy one of those dinosaurs for $39000 in manual before on road cost?.sorry for the people going to lose their jobs.even $600 billion government handout won’t enough to save these dinosaurs.
Why not get behind our country mates and hope they deliver the right products to take us all forward by masynee.
the right products from Korea?all crap daewoos already rebadged as holdens and selling to innocent Aussie.
I also applaud Holden for this response.
This response was great to see regardless of whether or not his (the lemon guy) predictions will ring true.
This is no different to a nurse coming out and saying a patient has no hope whilst in intensive care.
In that situation what would give any hospital staff member any right to come out and be so pesamistic about the future outcome???
Holden labels the stunt as…….
“A shameless self-promotion at the expense of our industry, our organisation and our employees.”
And thats what I and others were banging on about when the statement was released.
posted by The Fact
“don’t blame us….not our decisions to produce these dinosaurs….you ask yourself…would you buy one of those dinosaurs for $39000 in manual before on road cost?.sorry for the people going to lose their jobs.even $600 billion government handout won’t enough to save these dinosaurs.”
Take the FG Falcon as an example of a dinosaur. Please tell me what is out of date about it and how it is inferior to anything else in its price range.
I assume you’re talking about a base model for $39000? – in which case your figures are WAY off.
Posted by The Fact:
“the right products from Korea?all crap daewoos already rebadged as holdens and selling to innocent Aussie.”
What I actually said was, “Why not get behind our country mates and hope they deliver the right products to take us all forward.”
Clearly that is not a Daewoo product and I have been very vocal about my opposition to rebadged Daewoos. I am talking about competent vehicles with serious Australian design influence. I will wait for the upcoming delta based Holden to be released before I judge it. And there is no reason to believe that the next generation Focus developed by Ford will not be a very good car as the current model is.
What I am opposed to is the hybrid Camry – which is simply an imported drivetrain slotted into a Camry chassis. I don’t see why the govt decided to gift Toyota money for this as it required no Australian design and no investment into furthering technology.
But I don’t bundle every business case as one and right off the whole Australian car industry.
just go to latest review of falcon….asking $50000 with 4 speed auto?hard to find a car with 4 speed auto and asking for $50000.go to ford website and check rrp .upcoming delta?not going to happen.still dreaming?
by the way…remember 4 cyclinder vectra?tried and failed.not again.
TODAYS RUMOR MILL…
astra is being deleted from the holden range,something about the aussie dollar being too weak to make it worthwhile.apparently there are some good deals on bodykits now…
cruze,and,wait for it wheelnut…insignia also to be made in adelaide.watch this space…
Holden are still coy about whether the Cruze is to be built in Adelaide, or the Astra. Yesterday, Bret insisted Reuss is on record saying it’s the Cruze, but I don’t recall seeing anything of that. I might be wrong. The website says zilch. Could it be why you say the Astra’s for the chop, Jekyl and Hyde?
Might Holden be planning a version of one or the other with some Ozzie style input, like they did the Camira? Does anyone know?
Evening Golfie.
Read a brief test about the Cruze and not a classy car apparently, certainly not in the ethos of the Insignia. He said trying to keep on topic!!
Mmmm really J&H – The Astra could be dropped from Holdens line up the and the insignia could be built in Adelaide..?
I’d say the reason is because of the Aussie dollar and Holden believes that ATM it’s too expensive to import cars from Europe.
Which is why [according to the Rumour mill] Holden are apparently thinking more seriously about buillding cars for “Expensive” Europe here instead of a car that is also being built in “Cheap as” China and Korea
IMHO building the Insignia here makes much more sense not only because its a much more flexible versatile and practical car [with is FWD/AWD/RWD options] with alot more international appeal and popularity mainly because its an Opel and not a Daewoo design
Having said that – Holden could build more than the 2 types/model of cars car at Elizabeth… they have more than enough room not to mention one of the most modern flexible and productive facilities in GM
Perhaps they have already sold opel hence withdrawl of astra????
(just thinking outside the box)
Ive always thought it was only a matter of time anyway.
GM have invested so much into the new daewoo facility and have made no secrets that it will be the new global small car division.
The reason im not surprised it that whay would they invest so much into a new facility and not utilise to the max???
I dont want to turn this into a slagging on Daewoo fest (thats a different topic)
but good or poor quality arguments aside, if you thought they were gonna keep opels forever, you just cant read between the lines
Thats part why they are in trouble, too many double ups going on everywhere
Andrew M says; Perhaps they have already sold opel hence withdrawl of astra???? (just thinking outside the box)
That’s a possibility.. Maybe Holden could be gearing up to build the New Commodore; the Insignia [instead of the cruze] and the Astra..
Wheelnut,
Im still not sold on the insignia.
I dont think its the sort of volume seller that they need like the cruze/astra type will be.
Holdens at Elizabeth will not be building the Cruze or the Astra. It will be something completely different. Whether the Astra is still sold here I’m not sure about that.
The Insignia would be a better option as Holden could build and export them to help meet demand for it in Europe – instead of relying on one factory; creating a waiting list..
The other reason is because Holden could transfer the AWD system over to the next generation Commodore; which Holden has indicated could be available in AWD
It seems the argument goes: Support the aussie auto industry with your tax dollars because it employs fair dinkum aussie cobber true-blue battlers. Even those on the inside are in agreement that Holden, Ford and Toyota (Adelaide) are the biggest work for the dole programs Australia has going. That hardly qualifies it as an ‘industry’. I’d rather the employees work for the dole officially, and have to find work with businesses that run net operating profits.
Golfie
It was Mike Simcoe who said the Australian Cruze would be near identical to the rest-of-world version.
As I mentioned previously, Cruze hatch has been designed here and will be built here. Maybe this is the “different” car we are all speculating about. Maybe it will remain a uniquely Australian product for export across the world; remember that Delta is flexible enough to carry beam and/or independent rear ends and will underpin the Volt, Astra, Cruze, Zafira and Orlando vehicles.
And this is one big reason why Holden is here to stay. Commodore will remain in the line-up for some years to come, especially with its revised engines and transmissions. Delta – and its derivatives – is being geared up to replace the Commodore as the biggest selling Holden model, NOT the only car Holden will build.
I for one will remain a champion of Holden and the Australian car building industry. Long may it live.
wheelnut,
as long as they are standing opel workers, the insignia wont be built here and exported to europe.
Okay then Andrew.. that means that there is no real point in Ford Australia building the Focus either; given that it’s already being built in Europe.. doesn’t it?
I’d say one of the reasons Ford is building the Focus here is because ATM its fairly expensive to import cars from Europe. Not only that but The Ozi Focus could possibly be exported to help meet demand back in Europe.
Which is the same reason why I beleive that Holden should build the Insignia here instead of the Cruze which can be imported from Korea or China for less.
Korea is a RICH COUNTRY. Its labour rates are the same as UK. But they still make Plasma TVs, Ships, Cars, Computer chips etc in Korea. And its population is only 50 million.
In Japan, the lenses in Panasonic cameras are actually made by a small family in a backyard factory, which they deliver by van to the main Panasonic factory.
Rudd has to seriously invest in TRAINING and Research, to bring our workforce up to scrach, so we can start making stuff like rich countries do with good wages!
Holden VE Commodore Omega auto
Road Test
RRP: $38,290
Price as tested: $39,140 (includes: Metallic Paint $500, Full size spare wheel and tyre $350)
Crash rating: five-star (ANCAP)
Fuel: 91 RON ULP
Claimed fuel economy (L/100km): 10.6
CO2 emissions (g/km): 252
Also consider: Ford Falcon XT (more here), Toyota Aurion AT-X (more here)
Overall rating: 2.5/5.0
Engine/Drivetrain/Chassis: 2.0/5.0
Price, Packaging and Practicality: 2.5/5.0
Safety: 3.0/5.0
Behind the wheel: 2.5/5.0
X-factor: 2.5/5.0
About our ratings
Here’s a very solid car with appealing levels of roominess, practicality, a fantastic chassis and attractive looks — but it’s let down by the engine and transmission.
It’s amazing that a car with a DOHC V6 can be as noisy from below 5000rpm in this day and age. Nor is it a pleasant engine note, droning like a taxi from low speeds and sounding muscular-but-strained at higher revs. As one of the staffers here at the Carsales Network recalled, this is the engine that forms the basis of much more likeable powerplants in Alfa Romeos and Saabs.
Holden has recently turned down the power on this engine, reducing the output from 180 to 175kW, in order to reduce the car’s fuel consumption. This particular car on test was the petrol/auto variant, which doesn’t gain as much in terms of improved economy as the dual-fuel Omega. For the week in our hands — and admittedly with very little opportunity for open-road driving — the car averaged a poor 14.1L/100km.
Overall, the Commodore doesn’t feel subjectively slower than with the earlier engine tune. It’s quite quick, although it doesn’t feel as effortless from low speeds as Ford’s FG Falcon XT.
A major factor in the Omega’s lack of ease in the driving can be traced back to the four-speed automatic transmission. For lack of ratios — and wrong ratios — plus slow response and clunkiness, this is not one of our favourites.
The ratios are too high for reasonable straight line performance, a compromise forced on Holden by the lack of at least a fifth ratio. There’s very little in the way of engine braking available and the box will drop into fourth at low speeds on a light throttle, inducing some unpleasant vibration from the engine at a speed barely above 1000rpm.
It’s also slow to change down manually, but admittedly, hardly any typical owner will ever attempt to do so
The Omega did muster enough verve to spin a drive wheel on a damp section of road after a light downpour — and the wheelspin didn’t ease up as the speed rose, either. That, however, is probably more a reflection of the tyres’ general lack of grip.
Fitted with standard 16-inch alloy wheels, the Omega didn’t really benefit from the original equipment Bridgestone Turanza ER300 225/60 R16 tyres. They rode well, which is a plus in a car like this, but they were not supremely silent on country roads and they definitely need more ‘cartilage’ in the sidewalls. Even during gentle cornering the tyres could be felt and heard kneeling over.
During a downhill dash into a corner with the brakes applied, the otherwise unflappable steering became a little ’squiffy’, possibly as a consequence of the stability control intervening to check understeer — and we’re inclined to blame the tyres for that.
Yet, for our criticisms above, the basic sales rep special Omega retains some appeal. When cruising, it’s a relatively quiet car, with just a bit of wind rustle and some low-level rumble from the drivetrain. The tyres are very quiet on freeways, but noisier on coarse bitumen.
Country reps will appreciate the performance of the headlamps on high beam, but curse the dipped coverage as less than satisfactory. By best guess, they barely illuminate 50m in front of the car and as soon as another car approaches, the driver’s night vision is badly compromised. It’s not as if the lights are set too low, they just plain lack power.
Handling is very close to neutral and without the stability control’s input there’s little doubt the Omega would let go at the rear, throttle-off — though perhaps not quite as readily as the Falcon, with its simpler cross-blade IRS system. With some throttle applied, the multi-link IRS provides strong roadholding, despite feeling tuned softer than the MacPherson struts at the front.
It’s the suspension’s very softness in the springs and damping that contribute to what feels like a little float in the rear at higher speeds.
The Omega’s turn-in is responsive and steering feel is also impressive. Ultimately, the ride and handling are not as finely balanced as in the Falcon XT, but it’s still a very effective car in the twisties — especially for the money!
It’s more throttle-sensitive than the Falcon too. There seems to be a bit more push exiting a corner under power than we recall for the Ford. Once again, chances are that the Commodore’s basic handling and steering traits are degraded by the tyres.
We’ve covered the Commodore’s packaging in some detail previously, but we’ll reiterate some points that might have been lost in the mists of time.
The Commodore is allocated to the Large Car segment in VFACTS and it meets the definition superbly. Legroom is as big as all outdoors and as for headroom, it’s remarkable for a vehicle with a standard roofline.
In the rear seat, there’s plenty of leg and knee-room for adults. Even with the front seats set as far back as they’ll go (and they don’t need to be that far back for the accommodation of basketballers) there’s still adequate kneeroom in the back for adults and there’s also room under the front seats for rear-seat occupants to place their feet. Only taller adults may find the headlining in the rear is just a bit close to the bonce.
One of our readers recently observed, with some chagrin, that the VE Commodore’s boot won’t accommodate a boxed 51cm TV. Well, no it won’t — but Holden would probably point out that’s what the Sportwagon’s for… We’ll play the politician and ask the Lion to deliver a split-fold rear seat for the sedan at update time.
Tellies aside, the boot is not a bad thing as it is… A little shallow, as a consequence of drivetrain components under the floor, but it extends forward a fair way and it’s ‘boxy’ enough with relatively little intrusion from the sides.
As we’ve often said about VE Commodores in the past, the A-pillars are too thick. Objectively, they’re not way too thick — but enough to detract from the field of vision and affect safety. Driving at night, the offside (right) A-pillar was wide enough to conceal an on-coming car through a right-hand bend until it was within about 150m.
Another ‘known’ about the VE Commodore is the handbrake, with which we’re gradually coming to grips. In the VE’s latest incarnation, it seems to have come in for some tweaking. No longer does it seem quite as cheap and rattly. It’s still not ergonomically intuitive, but we can see owners quickly getting used to it as it requires less effort to operate these days.
It’s just struck the reviewer from driving the Commodore that the exterior mirrors fitted are really rather small. They’re delicate and dainty — they basically do the job and are probably aerodynamic to boot — but you’re left wondering whether you’re seeing the full picture to the diagonal rear, although we didn’t experience any problems with blind spots while the Commodore was in our possession.
There are a couple of points specific to the base-grade Omega: The seats are a little more Euro-flavour than in the Falcon. They’re comfortable enough and hold the occupant quite well, but in the test car the driver’s seat didn’t seem located properly and the reviewer felt like he was sitting slightly at odds with the direction of the seat.
The steering wheel is a large tiller, but provides a very clear view of instruments. It’s not an especially wonderful thing in a tactile sense, but for an inexpensive large family sedan, that can be forgiven.
We liked the auto headlights, but felt the lack of an MP3-compatible audio system in the car. Think of a metaphor to describe the transmission selector in the Omega and that would be ‘curate’s egg’. It’s slow, stodgy and long — but it’s in perfect harmony with the transmission itself. The reviewer did eventually adjust to the lever though.
If there’s one thing that really impresses about the Commodore, it’s the tight-as-a-drum body construction. Combine that with its very safe dynamics (now a five-star car, according to ANCAP), its spaciousness and its value for money, and you have a very strong package — in spite of the mechanicals.
As mentioned at the beginning of this review, the Omega is a car that is flawed because of its lacklustre engine and transmission combination. There are superseded diesel engines that feel more refined than the Alloytec V6 and surely it’s past time for Holden to upgrade to the five-speed automatic transmission option available in the SV6?almost $40,000 with 4 speed auto?truly dinosaur.how anyone spent $1 billion and produced the crap like this.every tax payers must seek the answers from the dinosaur.
Get a life Fact!
The fact says the VE is a dinasour but yet because of a total lack of imagination (probably caused by a very small brain)he copies and pastes a Carsales roadtest onto the Caradvice blog site despite there being more than one VE 6 cyl roadtest being available on the Caradvice site anyway. All the Carsales report tells us is the the VE is a nice smooth well put together car! The Fact! Well The Fact is, your an idiot!
The Fact claims that the price of an entry level Commodore is up near $40K – which suggests that he doesn’t watch much TV.. Because if he did he would see that you can now get a VE Commodore “International” for $33K [sedan] and $35K [Wagon] with a list of extra features including leather interior.
Then there’s a VE SV6 Ute for $34K. Not only that but m local Holden dealer is selling VE SS Utes for approx $36K [auto or manual].
Either that or he simply thinks that the Prices that are listed in the back of Wheels or Motor are fixed – that is what the dealers must sell the cars for which means no bargaining or negotiating…. if that is the case he obviously has never bought a new car before.
So what’s the response from Holden now GM has dropped the Pontiac????????
I wouldn’t be surprised if GM-Holden continue to export the VE but instead of wearing Pontiac G8 badges – they stick Chevrolet Impala badges on it.
Not only because it uses a Chevy engine but because the Zeta platform is a more modern more flexible platform which will improve the Impalas performance and handling.. and the ute could also be sold as an El Camino.
Thanks Wheelnut. I hope Holden stay or top the their PR. They need to keep showing strength.