quote:
Originally posted by wbute
The perfect storm story is just a diversion. High dollar, relatively high labour cost, long shipping distances have all been constantly encountered for as long as Holden has been owned by GM.
Our market is uncompetitive. Always has been. They only ever built cars here because government encouraged it. No doubt they originally hoped it would become feasible. It's taken till 2013 for the reality to occur.
With our high wages and living standard we probably need to be paying $100000 for a commodore to make them a paying proposition.
A diversion ?? WTF !! An artificially high dollar doesn't kill exports ? Stupidly high wages don't kill profitability ?
High shipping costs work in favour of locally built cars on a local market, don't they ?
The relatively high wages have only really snowballed to the current (insane) levels in the last decade. GM-H & all the locals were quite profitable when workers got a reasonable wage.
Our market hasn't always been uncompetitive. The was a time when just about ever brand of car that you can think of was built (or at least assembled) here. Many gen X or gen y guys on the forum may not realise it, but in the 50s, 60s & into the 70s cars such as VW, Volvo, Renault, Peugeot, Citroen, M/Benz, Studebaker, Rambler, Triumph, NSU were made here, as well as Pontiac, Buick, Chevrolet, Bedford, Vauxhall, Mercury, Dodge, Desoto, Plymouth. large US Fords, English Fords, Morris, Austin, Woleseley, MG, Simca etc. etc.
edit: Almost forgot Chrysler Valiant, Mitsubishi, Nissan, Hillman, Humber, Commer, etc.etc.
Not bad for a market that has "always been uncompetitive" !!
I agree that too much protection when you're uncompetitive, makes for high prices & a lazy workforce (1982 anyone ?) but no protection & overly generous wages has the effect we have seen played out this week.
Dr Terry