Australia’s Federal Chamber of Automotive Industries has launched a scathing retaliation against claims that taxpayer subsidies could fail to save Holden from going under.
The Centre for Independent Studies claims that Holden would be liquidated if General Motors were to sell off its global brands and file for insolvency. The report also referred to the Green Car Innovation Fund as “old-fashioned protectionism hiding behind a green smokescreen”.
FCAI chief executive, Andrew McKellar, has shot back, claiming the report is “plain wrong”. McKellar cited the restructuring plan submitted to the US treasury last month, in which GM described Holden as a viable option.
“(GM) sees a long-term, viable future for Holden… That’s an important vote of confidence,” he said.
The research paper claims that even with the assistance of the $6.2 billion Green Car Innovation Fund, to be released over the next decade, Australia’s auto industry is facing “existential difficulties”. Research fellow Oliver Hartwich said, ”The plan did not make sense when it was launched and makes even less sense now.”
McKellar however remains optimistic, explaining that the coming four-cylinder Holden Cruze and hybrid Toyota Camry would not be possible without their $1.3 billion share of the Green Car Innovation fund. “It attracts innovation into Australia and facilitates innovation in new technologies,” Mr McKellar said.
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“Four-cylinder Holden Cruze would not be possible without their $1.3 billion share of the Green Car Innovation fund” WTF?
Correct me if I’m wrong, but isnt everyone making 4 cyl cars these days? So how the hell does this get to be so Green? Does the Cruze have stop-start functionality? No. Is it a hybrid? No.. WTF? How can you call it green?
Its real good to see the “Green Fund” being dipped into and miss appropriated for non-green functions. Its also so typical of the KRudd goverment to throw buckets of money to the fat cat automotive industry, and without restrictions on its use.
In any case, the fate of Holden is all down to US giant GM. If the US government decides not to bail out the GM fat cats, then say good bye to Holden as we currently know it. If the FCAI has a crystal ball and knows that this bail out will be successful, then he’d be worth more as a palm reading phsycic than a fat cat automotive chief.
Wardski,
It is true that all mainstream manufacturers have multiple four-cylinder offerings available, however the only other four-cylinder car currently built in Australia is the Camry.
Without the boost from the Government the investment for a new model isn’t possible. As for green credentials, the Cruze will use less fuel and emmit less CO2 than any six-cylinder car built here.Plus there is much talk about diesel, LPG and CNG (Compressed Natural Gas) as well as the ability for the cars’ platform to run a hybrid system.
While its all just speculation right now the car will need to offer some form of green-tech to qualify. Sadly though at this point in time no one can say what tomorrow will bring, however Holden is in a relatively strong position at the moment.
Kez, while I agree with you that there isn’t a locally built 4 cyl Holden powerplant in Australia, Holden still has R&D costs to spend on projects, just like every other manufacturer, and therefore, it should have been part of the Kyoto protocol to have respective countries develop lower emmission, more efficient (green) cars with their own capital.
In this case, not only is Holden just sticking with the same o same o (just in a 4 cyl flavour, which they could be taking from any other manufacturer parts bin - eg Opal), they’re basically getting a free ride. I hate being negative in these economically depressing times, but just cant understand why the Aust Government would allow the funds spent on a locally made 4cyl with essentially nothing “Green” about it..
The dollars would be better spent on stop-start tech for their 6cyl/8cyl motors (eg as used in the new Mazda 3/6’s), switch off cylinder tech like Honda is using to go from 6->4 cyls. Developing a locally made 4cyl is just a sensless excuse for spending $ on nothing special in particular, and that would be money better spent on improving the standards of our education & hospitals.
In the end, its a political decision, and its really a bad one!
I would not be buying any holdens just at the moment in case something happins to gm in the us if thay file then you will be left high and dry no warranty claims no recall fix ups your all on your own just put buying for couple of months till we see what happins to gm
Why cant people face it? when GM go bankrupt Holden WILL CEASE TO EXIST ……..and good riddance. How people could buy a Daewoo with a Holden badge on it is beyond me. Commodore is the worst car in its class by far as well so when they go under there will be only benefits for car buyers. Lets hope its sooner than later
Yo, you’re misreading the situation there Motormouth.
If GM US tumbles - which, in my view, is a most likely outcome of its current difficulties - it will be a Chapter 11 ‘controlled’ bankruptcy, giving it breathing space from its obligations while it sorts out its operation and sheds the worst of its loss-making plants and production lines.
If, when, this happens, it will take the cleaver to its model range, but it will continue trading and, yes, will emerge on the other side.
But it will be a helluva lot smaller, and with a leaner model range.
Sure, GM’s Holden operation has been up and down in recent years, level-pegging 07-08, but GM US will be very unlikely to shed its rear-drive platforms and the rear-drive intelligence and lean-development capability at Holden.
The simple fact is that we will keep an Australian vehicle manufacturing industry, if Australians want it. Not whether the Government throws money at it or not.
We build arguably the best affordable, strong and dynamically capable large cars on the planet. (Have a look at what the US scribes say about the G8 and what they compare it to.)
But we won’t keep this industry, and we won’t keep production of these cars - the Falcon, Commodore and Aurion - if we don’t buy them.
It’s actually in our hands ultimately. What we choose to do with our money when we get to the showroom will determine the fate of Holden (and our local Ford and Toyota operations).
The Insider
Be honest now, you own a Ford dont you
Kez,
This is protectionism. Why is Ford able to build a 4cyl Focus in Aust without this taxpayer hand-out but Holden can’t?