Posted: July 22nd, 2012 | Author: Michael Courtenay | Filed under: Hard Pill to Swallow, News | Tags: australia, Australian Government Subsidies, Business News, Ford Australia, General Motors Australia, General Motors Holden | Comments Off on Fords $AU100 Million Dollar Government Gift Equates to 400 LOST JOBS
In January this year we wrote – The Cost of Keeping Auto Makers Local – as sales of Australian made large cars – GM Holden Commodore and Ford Falcon – dramatically dropped the auto makers stood in line for serious government financial assistance. GM’s Commodore 15-year run as Australia’s best-selling vehicle was ended abruptly in 2011 by the Japanese manufactured Mazda3, while Ford Falcon sales plummeted to fewer than 19,000 units in 2011.
In May we questioned the validety of Australian Government subsidies granted to the nations 2 big auto makers – General Motors & Ford – The Cost of Keeping General Motors ‘Holden’ Local, And asking the question: So Exactly How Much Does it Cost to Keep Auto Makers in Australia? At the time, the Australian Government answered the question by handing General Motors Holden more than $AU275 Million to help keep auto manufacturing in Australia.
Ford Australia in the last few days has shockingly announced the loss of 440 jobs in it’s Victorian plants.
In the case of Ford, the Australian Government granted the company $AU103 million in subsidies with the promise of plant – Geelong – upgrades and the longevity of Fords large sedan the Ford Falcon. Right about now the Federal Government, and Prime Minister Julia Gillard must be wondering if they’d simply thrown good money after bad, with Ford announcing that it will shed 440 jobs? :: Read the rest of this entry »
Posted: January 12th, 2012 | Author: M.Aaron Silverman | Filed under: Business News | Tags: australia, Auto Maker, Auto News, bailout, Business News, Co-Investment, Ford, Ford Australia, General Motors, General Motors Australia, gm, Grilled, Holden, Motoring News | Comments Off on The High Cost of Keeping Auto Makers Local
Australia: Sales of the Australian made large cars – Holden Commodore and Ford Falcon – have dropped alarmingly in recent years. The Commodore’s 15-year run as Australia’s best-selling vehicle was ended abruptly in 2011 by the Japanese manufactured Mazda3, while Ford Falcon sales plummeted to fewer than 19,000 units in 2011. So Exactly How Much Does it Cost to Keep Auto Makers in Australia? Between $100 and $200 Million!? Holden says it is getting closer to announcing co-investment from the Federal Government and parent company General Motors as it looks to secure the local manufacturing of the Cruze and Commodore beyond 2018. Ford has announced a fresh $103 million investment for it’s Falcon range of large car and Territory SUV, though the future of the Australian-built vehicles is still guaranteed only until the end of 2016. Australia’s Minister for Manufacturing, Kim Carr, and South Australian Premier Jay Weatherill have been in talks with GM at this week’s 2012 Detroit motor show as part of a political delegation seeking future support for the Australian car industry.State and federal governments could be forced to pay up to $200 million to keep Holden factories in Australia, a workforce analyst said. Both the federal and South Australian governments have indicated they will pay Holden’s parent company General Motors a “substantial sum” to prevent manufacturing from being moved offshore. Holden wasn’t able to announce its own confirmed co-investment strategy but the car maker’s managing director, Mike Devereux, said parties are working towards an agreement. Read the full article »»»»