Well heres a couple of interesting articles from about a month ago -
Australian car makers doomed, Holden first to go: Expert
A car industry expert claims Australias automotive industry is doomed, and says GM Holden will be the first local car maker to shut its doors.
Clive Matthew-Wilson, editor of a guide for car buyers called the Dog & Lemon Guide, claims Holdens decision to halve production at its South Australian plant last month was the beginning of the end.
"Australias car factories are losing money on every vehicle they make," Matthew-Wilson said in a statement.
"No amount of incentives from the state and federal governments can solve this basic problem. Its not a matter of whether they close down, but when they close down."
Matthew-Wilsons doomsday claims come as Holdens parent company, Detroit-based General Motors, lurches closer to bankruptcy.
The New York Times revealed on the weekend that US Treasury officials have instructed the company to prepare to file for bankruptcy in the event it cannot finalise deals with bondholders (it needs their approval to restructure its debt) and unions (it needs their approval to cut benefits and pay) by 1 June.
While Holden officials insist GMs bankruptcy would not automatically force Holden to close, it would make the local companys position extraordinarily precarious.
Matthew-Wilson claims Ford and then Toyota would also be forced to close their Australian operations because of the precarious positions of their parent companies.
"Ford is losing billions just like GM; its just that Ford arranged private sector finance before the recession, so its not quite so obvious how serious things are," he says.
"Australias only other manufacturer, Toyota, is globally facing its first annual net loss in 59 years. How long do you think Toyota is going to put up with losing money by assembling cars in Australia?"
Matthew-Wilson has also slammed the Australian Governments decision to offer the automotive industry a $6 billion bailout package, including millions for the development of green cars. He says the size of Australias market and the relatively high cost of labour means there is no way to make the industry viable in the long term.
"The Australian car industry can re-focus on small cars, green cars, blue cars or red cars. None of this will make the slightest difference.
"Globally, theres a glut of new cars at bargain prices, yet Australia, which produces a small number of high cost cars, is trying to compete with countries like China, which produces 10 million cars a year and pays its car workers as little as one dollar per hour.
"Australias car plants are losing money faster than a drunk at a casino, and theres no feasible way of turning this around."
And then theres this reply of sorts....
HOLDEN has slammed a motoring journalists claim that Holdens operations in Australia are doomed.
Editor of the car buyers Dog & Lemon Guide, Clive Matthew-Wilson, said the Australian car manufacturer is poised to shut down for good because it can no longer compete in the global market.
But a Holden spokesperson questioned what right one person had to call time on an industry employing more than 60,000 people.
"What data is he basing his views on when happily sounding the death knell for Australian car makers and employees? the spokesperson said.
"Weve 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, four-cylinder small car.
"This is shameless self-promotion at the expense of our industry, our organisation and our employees.
"Were in there fighting in a pretty tough global environment and we wont be discouraged by bystanders, the company said.
Holden said it would also continue with plans to produce a new four-cylinder car in Adelaide, the vehicles development helped by funds provided by both the South Australian and federal governments.
Beginning of the end
Mr Matthew-Wilson said Holden had signalled the beginning of the end when it recently halved production at its South Australian plan.
In early April the company announced that from May 4 it will reduce production at its Adelaide plant from about 600 vehicles a day to 310, citing reduced demand in domestic and export markets.
"Australias car factories are losing money on every vehicle they make," Mr Matthew-Wilson said in a statement.
"No amount of incentives from the state and federal governments can solve this basic problem.
"Its not a matter of whether they close down, but when they close down."
He said Holden will be the first to go, followed by Ford and then Toyota.
"People falsely believe that Ford is doing okay. Thats not true," he said.
"American Fords sales are down 43 per cent in the first quarter of this year.
"Ford is losing billions just like GM; its just that Ford arranged private sector finance before the recession, so its not quite so obvious how serious things are."
Amid the financial turmoil, the big three US car makers - Ford, Chrysler and Holden owner General Motors - have asked the US government for a loan guarantee of $US25 billion ($37.51 billion).
Earlier this year Toyota, the worlds No.1 car maker and Australian market leader, accepted a $35 million federal government grant to build a hybrid version of its four-cylinder Camry sedan in Melbourne from 2010.
But Mr Matthew-Wilson said the money is a waste.
"Globally, theres a glut of new cars at bargain prices, yet Australia, which produces a small number of high cost cars, is trying to compete with countries like China, which produces ten million cars a year and pays its car workers as little as one dollar per hour.
"The Australian government can throw $6 billion or $600 billion at these car plants, but they still wont be economically feasible," he said.
"Australias car plants are losing money faster than a drunk at a casino and theres no feasible way of turning this around.
"The Australian car industry can re-focus on small cars, green cars, blue cars or red cars. None of this will make the slightest difference."
Mr Matthew-Wilson believes the government money would have been better spent by giving it to the affected car workers.
