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    Thread: Holden will cease manufacturing cars in Australia in 2017

    1. #61

      Senior Member
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      Jun 2008
      Highbury, SA
      4221 times
      For a government to lose one car manufacturer may be regarded as a misfortune... for a government to lose both looks like carelessness (or carlessness, even)

      (With apologies to Oscar Wilde )
      Sometimes the grass will appear greener on the other side because it has been fertilised by bull****

    2. #62

      Senior Member
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      Mar 2008
      958 times

      Truth is, no job is for life anymore, writes Jessica Irvine

      • by: By JESSICA IRVINE
      • From: News Corp Australia Network
      • 4 days ago February 11, 2014 10:43PM

        Why did Toyota give up? 2:09
      • Play video

      Carsguide editor Paul Pottinger explains how Toyota struggled to make a profit and the factors that led to it ceasing manufacture in Australia.

      LOSING your job has got to be one of life’s most stressful events, right up there with getting divorced or moving house.

      Getting retrenched deals a killer double blow: to both the ego and the bank balance.

      And so it’s only natural to feel sympathy for the 2,500 Toyota workers who this week found out they will be made redundant by 2017.

      Not to mention the thousands of other workers in component supplies businesses who will lose their jobs too — often without the generous support likely to be offered to Toyota workers.

      But the sad fact is that, in the year ended February 2013, about 355,000 Australians were involuntarily retrenched, according to the Productivity Commission.

      The pain of Toyota workers is just a drop in the ocean compared to the normal churn and insecurity of the modern Australian workforce.

      Truth is, no job is for life any more, and Australia’s car manufacturing industry has met a natural death.

      Government life support could only do so much for a patient battling a stubbornly high dollar and relatively high cost labour compared to other producers in the Asian region.

      Aussie consumers’ penchant for zippy, imported cars hasn’t helped either.

      The pain of Toyota workers is just a drop in the ocean compared to the insecurity of the modern Australian workforce. Source: AFP

      When Ford Australia boss Bob Graziano announced almost a year ago that the company would cease manufacturing here in 2016, he noted that Australians could now choose from 65 different brands and 365 different models — one for every day of the week.Every time we bought an imported car, the job prospects of Aussie car makers got a little dimmer.

      Indeed, this week’s Toyota announcement represents just the final nail in a coffin for the Australian car industry that we all helped to build.

      Between 2006 and 2013, the number of vehicles manufactured in Australia shrank by a third, from 300,000 to 200,000. The number of firms manufacturing auto component parts also shrank.

      Around 44,000 Australians today are employed by the automotive manufacturing industry, a drop of 40 per cent since 2006. Given Australia’s total workforce of 11 million, that’s a small and shrinking proportion.

      Yes, it’s only natural to worry about job losses.

      The Toyota shutdown - and its knock-on affect - will hit an estimated 50,000 jobs. Source: News Limited

      But the answer is forking out billions of taxpayer money to protect unprofitable jobs, but to redirect energy into thinking about the jobs of the future.Money spent paying salaries at Toyota would be better spent investing in new urban transport infrastructure which would not only create jobs but boost the productivity of all workers by easing congestion.

      Of course any such projects should also meet a strict cost-benefit analysis.

      Far from being an unmitigated disaster for our economy, there are good reasons to celebrate the end of the unprofitable business of car manufacturing in Australia.

      First it was a costly business keeping the patient alive.

      The Productivity Commission estimates that around $30 billion, in today’s dollars, was dished out to the car industry in the fifteen years between 1997 and 2012.This includes the cost from direct government subsidies and also the cost to consumers of having to pay higher prices for imported cars.

      Indeed, Aussie consumers could be forgiven for cheering the death of Aussie car manufacturing. There is now no longer any policy reason to maintain the 5 per cent tariff on imported cars. In the 1980s, Aussie car buyers paid tariffs as high as 60 per cent on imported cars — designed to protect local players.

      That has been wound back significantly, but Aussie consumers have literally paid billions of dollars extra on their car purchases over the years to support car making jobs.

      On top of that saving for consumers, taxpayer dollars that would otherwise have gone to prop up a dying industry can now be redirected to other priorities like health and disability care.

      And the end of rules requiring government to prioritise Aussie made cars may also lead to savings in government procurement.

      It is only natural to worry about where the jobs of the future will come from. Increasingly Australia is becoming a professional services based economy. That is a good thing, but will require additional investment in education and skills formation.

      So do spare a thought for those who have lost their jobs in the demise of our car industry.

      But at the end of the day, Australia is better off without it.
      Last edited by Jessica Berry; 15-02-2014 at 05:17 AM.

    3. #63

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      Mar 2008
      958 times
      Office roles are already very highly sought after in Adelaide, so I would envisage once the Holden office job seekers come onto the job market, competition will get tougher, although I would imagine not all of the staff will be looking for employment.

      Thousands of office workers to lose jobs at Toyota, Holden, Ford

      • From: News Limited Network
      • February 23, 2014

      THE collapse of car manufacturing will wipe out thousands of white-collar jobs at Toyota, Holden and Ford — and, contrary to earlier claims, it will also likely lead to the closure of dozens of Holden and Ford dealerships across Australia.

      A combined total of more than 2,000 office workers support the manufacturing and logistics operations at Australia’s three car makers and their roles will be redundant once the factories close by the end of 2017 and Toyota, Holden and Ford become primarily sales and marketing operations.

      It will bring the true tally of job losses to about 8,000 at the car makers alone, once white-collar workers join their 2,500 colleagues on the factory floor at Toyota, the 1,700 at Holden and the 1,500 at Ford.

      “There will be significant (white-collar) job losses across all three brands, no question,” a Toyota executive told News Corp Australia.

      Meanwhile, despite advertisements declaring their commitment to Australia, both Holden and Ford have the unenviable job of rationalising their dealer networks.

      As analysis by News Corp Australia shows, Holden has more dealerships than market leader Toyota but sells about half as many cars. Ford has almost as many dealerships as Toyota but sells less than half as many cars.

      Sales of Holdens and Fords are at 20-year lows and are likely to fall even further without the preferential treatment given to Australian-made cars in government purchasing contracts.

      Each Toyota dealer sold an average of 1,000 cars last year while Ford and Holden dealers sold an average of 440 to 480 cars respectively.

      By comparison, Mazda dealers sold an average of 825 cars last year while Hyundai outlets sold an average of 625 cars.

      Holden and Ford would not speculate which dealers were vulnerable, citing “commercial in confidence” agreements, and repeated their commitment to remaining in Australia “in the long term”.

      But senior sources at both companies told News Corp Australia dealer numbers would likely be cut due to “natural attrition” rather than termination of contracts.

      “Ford’s plan since we announced the transformation of our business is to promote profitable and viable dealers,” said Ford Australia spokesman Wes Sherwood.

      When asked to comment on industry rumours that several Ford dealers were about to close, Mr Sherwood said: “We don’t comment on discussions with our dealers.”

      General Motors spokesman George Svigos said Holden dealers “cover every corner of Australia” because, in the early days, every second car on the road was a Holden.

      The company had a peak of more than 300 dealers before the year 2000. Today Holden has 232 dealers, which still is more than any other car brand in Australia.

      Holden would not speculate how many dealers would be cut from the network once manufacturing comes to an end.

      “The Holden dealer network will continue to evolve to meet customer needs as it has done for decades,” said Mr Svigos.

      Meanwhile, Toyota Australia’s total head office workforce today stands at 3,900, but once its 2,500 factory jobs go that will leave 1,400 office staff fighting for their desks.

      Holden’s total head office workforce today stands at 3,400, but once the 1,700 factory jobs go that will leave Holden with 1,700 white-collar workers, many of whom are in supporting roles for manufacturing, such as purchasing and logistics.

      By comparison the biggest import-only brands, Hyundai and Mazda, have 200 to 250 staff respectively at their Australian head offices and yet each company sells more cars than Ford and almost as many as Holden.

      Ford says it will keep about 1,000 designers and engineers to help develop foreign vehicles while Holden says it will retain at least 100 designers who will work remotely on global General Motors projects.

      But white-collar job-losses at all three local car manufacturers — Toyota, Holden and Ford — are expected to top 2,000 combined once the industry is shuttered by the end of 2017.

      This reporter is on Twitter: @JoshuaDowling

      The car industry by the numbers — and why white-collar jobs will go:

      Toyota Australia head office workforce: 3900
      Factory: 2500
      White-collar: 1400
      Total number of cars sold in 2013: 215,000
      Number of cars sold per head office employee in 2013: 55
      Average number of cars sold per dealership in 2013: 1000

      Holden Australia head office workforce: 3400
      Factory: 1700
      White-collar: 1400
      Total number of cars sold in 2013: 112,000
      Number of cars sold per head office employee in 2013: 33
      Average number of cars sold per dealership in 2013: 480

      Ford Australia head office workforce: 2700
      Factory: 1200
      White-collar: 1500
      Total number of cars sold in 2013: 87,000
      Number of cars sold per head office employee in 2013: 32
      Average number of cars sold per dealership in 2013: 440

      Mazda Australia head office workforce: 250
      Factory: N/A (import only brand)
      White-collar: 250
      Total number of cars sold in 2013: 103,000
      Number of cars sold per head office employee in 2013: 410
      Average number of cars sold per dealership in 2013: 825

      Hyundai Australia head office workforce: 200
      Factory: N/A (import only brand)
      White-collar: 200
      Total number of cars sold in 2013: 97,000
      Number of cars sold per head office employee in 2013: 485
      Average number of cars sold per dealership in 2013: 605

    4. #64

      Senior Member
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      Jul 2009
      Seaford Meadows, SA
      245 times
      Olympic damn... like phoenix from the flames.


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