Holden set for massive boost to China engine exports
July 15, 2009 by David Twomey
It would seem that the Holden Engine Operations plant in Port Melbourne is set to become a lot busier with news that its exports to China could quadruple over the next four years and then stay at that level.
By David Twomey
Australia’s Minister for Innovation, Industry, Science and Research, Senator Kim Carr, has revealed in a doorstop interview in China that GM Holden is in line to boost its engine exports from about 5000 a year to 20,000 and to then hold them at that level.
Senator Carr, who has been holding talks with Chinese leaders on expanding Australian industry penetration into China, has also had talks with General Motors Company’s newly appointed vice-president of international operations Nick Reilly, along with GM China managing director (former Holden executive) Kevin Wale.
After the talks Senator Carr told journalists; “If we take for instance the case of General Motors’ plant in Fishermans Bend, which has drawn some attention in recent times, we are looking at an expansion from 5000 engines a year up to 20,000 engines a year, and staying at about 20,000 a year.
“There has to be a significant employment implication for Australian automotive industry workers. It has significant implications for the auto supply chain that actually goes into making that engine,” Senator Carr added.
Senator Carr went on to enthuse that there were many more opportunities for the Australian automotive industry in China.
“Now that sort of experience, I think, can be replicated a number of times over in different companies operating in different fields of the automotive industry. It is not just the direct manufacturers, it is our design and engineering people, it is our universities, and it is the CSIRO. There are just so many chances here,” he said.
GM Holden has confirmed that the engines Senator Carr was referring to were from its High Feature V6 (HFV6) plant in Port Melbourne.
That plant builds a range of V6 engines for the domestic market, but also overseas GM customers in Asia (China and South Korea), the Middle East, Europe, Africa and Mexico.
Holden engines currently exported to China are used in the Buick Park Avenue, a vehicle built in China, based on the Holden Caprice.
GM Holden spokesman Jonathan Rose told CarAdvice; “”We anticipate an increase in V6 engine exports, particularly to the key Chinese market in coming years. That’s obviously contingent on future model programs in China.
“It’s very pleasing to be recognised overseas for our technical capabilities and having Shanghai GM being enthusiastic about the opportunity with senior Australian Government Ministers.
“We very much appreciate the Government’s support in promoting our expertise to important overseas markets. Once again, it demonstrates their commitment to an Australian automotive industry.
“We said at the time of the decision to end the Pontiac brand, that we would get back out there and find new export opportunities for our engines and vehicles around the world. We’re continuing to do just that.”
Print it: 
Good news for Holden and Aussie Jobs also the HFV6 is noisey enough too feel right at home in a chinese built car.
I suppose we can still think they are Australian when we start importing the LWB’s from China then……… :-) (jokes people jokes…..)
Well that’s really great news for Holden then!
LOL!!
Moderation of moderation….GOLD!
FrugalOne Says: Your comment is awaiting moderation.
July 15th, 2009 at 4:28 pm
“FrugalOne Says: Your comment is awaiting moderation.”
WTF?
Meets code of conduct, and is 100% topic related….
Cheers
F-0
Trouble is they will copy it and send it back as a Nedloh
Excellent news for Australia, Holden and for the workers.
Cue the Ford fanboys with Daewoo trolling in 3…2…1…
actually Roddy, most of the Ford Fan boys are like the genuine Holden ones, may hate each other but still want to see both surviving as Australian Manufacturers!! We need each other.
(now that I’ve said teh Australian manufacturers watch the lines come in)
Roddy, Just remeber that YOU statred it when it happens.
Seriously though this is good news for the Aus auto industry.
However, where’s the FULL story?
GM Holden now report directly to the China based GM global opereations. What does this mean for GMH?
It means it has a foot up into the biggest auto market in the world.
Awesome news…looking good for GMH.
I have a real problem with Holden now being owned by the U.S. government, I dont think its good for a car company to be Gov owned, and also because GM (Gov Motors) is so far in debt to the Gov it will never pay it back. That cant be good for the long term future of GM Holden. If i hear one more person tell me Holden is aussie I will scream! Owned by the U.S. government makes it less aussie than it has ever been !!! Buy a GM Holden and your cash goes straight to Barack and his buddies!!
DI, they have until 2015 to repay ALL of the loans. The cheif reckons he can do it earlier – time will tell.
Roddy, I’m not so sure it’s all good news. Sure the engine deal is awsome, but being controlled out of China makes me a bit nervous.
Frontman may just be right and the LWB production will be the first to go there.
I also suspect that even more chinese made components will make their way into GMH vehicles, and that China WILL definitely be a source for future Holdens (alongside Korea). That doesn’t mean that GMH will cease manufacturing here though, I hope.
Perhaps the bigger demand on the engines will warrent them putting money in to it to make it a half decent donk….
Also where was China getting them from originally???
Were they already sourcing them from the other plant that makes the 3.6L alloytec??
Another trumpet from Kim Carr who is supposedly “Australia’s Minister for Innovation, Industry, Science and Research”.
Strange thing is that he is never in the media for anything other than the tax payer supported automotive industry. I wouldn’t be surprised if all his advisors reside in Gellibrand and Wills!!
How about plugging our minerals industry? Or oil and gas?
Great news for Holden. Now whats happening with Fords engine exports?
Falcadore,
I was wandering the same thing.
So far they havent even disclosed who is actually chasing the aussie I6’s.
My bet is it will come about at the same time Holdens program swings into action, because they always seem to mirror each other.
First both announce to put diesels into their large cars in 2010
Then both annunce small cars made in OZ in 2010
Now its they will both start exporting respectable volumes of engines
@ Andrew M,
I was reading on GoAuto a while back that whoever’s buying it, they’re not using it for automotive applications.
I wouldn`t be getting to carried away, it won`t be long and the engines will be built in China, the parts will come from their and the labour is cheaper. It won`t take long for them to do what Holden is doing.
DesignEng…..how the hell could they pay off about $100 billion in 5 years? Imagine having that hangin over your head!! I cant see how they can make new models and pay that much money back at the same time…….somethings gotta give…….
Charles….I agree, the block and heads are made in Mexico so if they can assemble the thing elsewhere cheaper thay will do it, and soon.
!<<Do the math, they are only building a 5000 a year, not even a 100 donks a week/ as in a tiny 20 a day, cannot be making money at those figures…..
They NEED exports badly, the question is China hates imports, what do we have to do for them in return?They are going to want us to take GreatWall’s/Geely’s etc of some type powered by said engine.
China is going to be the real winner out of this [as always]
Cheers
F-0
Vote: 18 2
Holden will be increasing production to 20000 per year, not 5000…
F – O
My concern exactly. Next step might involve sending the engines back to Australia, under the hood of a Commodore.
Roddy, whilst on the Australian scale of thing 20,000 sounds great, when you are looking at Factories turning out 300,000 cars/annum then you can see why there is every chance of them being sorced from elswhere.
My fear is that once GM global has repayed the Loan from the Aust government (predominately form overseas production) they WILL close the Australian opperation. Sure they are giving Aust the small car line but I have the fear that, because this vehicle is being made in several plants, the Aust one is a side line for the short term.
The difference I see is that, unlike Focus production (which becomes for the whole Asia Pacific rim replacing SA) the Small car line isn’t replacing another factory, simply adding to an already cracked supply & demand chain.
DI have you heard any of the recent news reports. GM Holden is owned by GM but is independently operated and it alone manages the Asia-Pacific GM region. Really go and read other news sites and maybe the newspaper!
Frontman you have a very good point and you worry me, because if Holden production of their small car is to costly then they will be shut down and just use the Daewoo manufactured version.
Shak, don’t forget that they have the Shanghai version of the Insignia and the Astra Sedans that they sell as Buicks. THere are a whole range of products being pumped out of Asian factories that thye have at their disposals and those factories are more modern and more flexible than Elizabeth.
Whilst I know wheelnut will strenuously deny the possibility (I’d probably do the same for Ford), but it piurely a case of business economy and if GM are to avoid repeating their past mistakes all factories will be under the pump to make money or move on.
Think of Australian car manufactures as the old corner deli we all used to have at the end of the street. The girl behind the counter always had a smile for you and you never questioned the prices of their products. Enter the overseas imports or the Super Market if you will. With sharp pricing, easy parking and wider choices even the girl behind the counter of the now shut down deli shops there. China is the worlds next big super market. Holden is a deli with just a few loyal customers. And now the Deli is starting to turn to the supermarket for help. How much time do you think our little Deli has left?
Anti Spam word “Mitsubishi” Ironic, eh
The Salesman^^^
lol, nice work!
Have you got that corner-stores pretty girls phone number?, she sounds cute as a button! :-)
Cheers
F-0
salesman,
if holden end up “made in china”,maybe they will start throwing in some free wardrobe,or maybe a set of callaway/taylor-made’s in the boot?(after all,everything else is made there)…
direct injection,
owned by the u.s.govt,or broke,done,gone…i know what everyone else thinks.
Rule 101: Never trust a politician.
Rule 102: Don’t count you chookens…
Some people have made some incorrect assumptions regarding the engine production numbers.
The numbers mentioned relate to China exports only, jumping from 5000 to 20,000 pa.
The Port Melbourne engine plant supplies engines to many other export destinations. Production is in the order of 130,000 – 150,000 pa.
Frugal do the maths again using some real numbers. You know what they say b/s in, b/s out.
DesignEng©™^^^^
***Senator Carr told journalists; “If we take for instance the case of General Motors’ plant in Fishermans Bend, which has drawn some attention in recent times, we are looking at an expansion from 5000 engines a year up to 20,000 engines a year, and staying at about 20,000 a year.***
I based my comment on what Carr stated above, based on that my comment is 100% correct, he needed to comment and state the correct annual production.
Like i said the figures he quoted did not make sense, they cannot run that plant making 20 engines a day for export, already picked that, besides i have seen the huge amount of 40′ containers they have ready for stuffing, not going to have that quantity for 20 engines a day are they?
Cheers
F-0
Frugal,
it’s all about the words and quotes in the right context, it’s not your fault. But we can’t point those things out.
Well I believe its only a matter of time that the Chinese will be building these motors, the joint ventures with Holden and Mitsubishi are just a stop gap measure to getting their cars out in the motoring world. It makes a great deal of sense to do this for the short term but if its like anything the Chinese do, they will be reproducing these motors shortly.Like others have stated it will happen, as their labour is cheaper and it won`t take long for the new GM to see that. The worrying thing I guess for Holden is, when will they be building the Cruz and the Commodore.
All of you conspiracy theorists and armchair doomsayers, just take a look at yourselves.
Did you read the story? It says Holden has secured an engine export deal to China! YES, AN EXPORT DEAL TO CHINA!!!
YAYYYYYYYY! Well done, Holden.