GM bankrupt were to for Holden

the big jg33 · 02-06-2009, 11:02 AM

Woke up today to see a press conference on the news, what greeted me was the CEO of holden australia, fronting the media, Mark reuss, faced with Gm's imminent bankruptcy, one couldnt help but notice the stress on this man as he was trying to do what was the industry norm, say 2 years ago and put a positive spin on a company which may be up the creek before we know it, every comment almost seemed pained, as it left mr reuss's mouth, now that Gm's bankruptcy has finally hit, it will be interesting to see how Holden copes, there was mention of an export program, albeit the pontiac/commodore G8, im kind of asking myself that program was probably there best shot in the past so what would replace it? Jobs seemed to be safe, although at lower production levels jow safe are they really, if you get to see this press conference, you may see what im referring to as far as a man giving people the answers they want to hear, but will the workers actually get the end result as promised, and will holden come through this all, its a true testament to Fords management, that although things are bad due to GFC as a company they are ina much better place, and surely Gm's bankruptcy has got to work in fords favor as far as product range and perception to the general public goes, i beleive it will be a very long time before GM remotely even becomes a fraction of the great company it once was, the stigma of having to bite the bullet and declare bankruptcy, cant be a good thing. would appreciate your thoughts on this

Road_Warrior · 02-06-2009, 11:05 AM

I think they'll be fine. However there may be some more job losses at Holden plants as they try to wind back costs and development dollars for new products won't be forthcoming for a while.

the big jg33 · 02-06-2009, 11:23 AM

Road warrior, thanks for the reply mate, what do you think they're prospects for an export program are then, also with parent company going bankrupt and with plant closures imminent in america, how will supply be affected here, we aussies are tuff markers when it comes to quality, and having the uncertainty from day to day as far as service, and cars being built from here on being reliable, makes me wonder if the public will be as forgiving, this is also still very fresh and im sure the media will cut it to pieces, so i think holden is in for one hell of a rough ride, especially if they dont honour all employees agreements and entitlements, its basically treading on eggshells for them from here on any bad decisions will come back to haunt them as they will be under the microscope

Road_Warrior · 02-06-2009, 11:35 AM

Quote:

Originally Posted by the big jg33

Road warrior, thanks for the reply mate, what do you think they're prospects for an export program are then, also with parent company going bankrupt and with plant closures imminent in america, how will supply be affected here, we aussies are tuff markers when it comes to quality, and having the uncertainty from day to day as far as service, and cars being built from here on being reliable, makes me wonder if the public will be as forgiving, this is also still very fresh and im sure the media will cut it to pieces, so i think holden is in for one hell of a rough ride, especially if they dont honour all employees agreements and entitlements, its basically treading on eggshells for them from here on any bad decisions will come back to haunt them as they will be under the microscope

As I said, development funds for new products have more than likely been frozen or simply taken away. This means that Holden won't be able to tap into GM's credit and funds stash for things like an all-new Commodore (which we already knew anyway - the next 'all new' Commodore will be a new top hat on the Zeta platform) but as far as exports go, they still have access to the Middle East export market. Sure, that market is depressed (like everywhere else) because of the GFC, but it will bounce back. But I wouldnt count on exports to North America any time soon, if at all. That horse bolted a while back and with tough new emissions laws being touted for the US I don't think a heavy RWD Zeta car will make it there (in it's current form anyway).

And I think you'll find that most of Holden's componentry comes from China and Korea and some stuff still made here so I think it will be business as usual in that regard.

RG · 02-06-2009, 11:41 AM

http://www.fordforums.com.au/showthread.php?t=11256013

Already a thread on this.