Bob Lutz on Korean Holdens

[Des]

Saw this in todays paper, so had to find the smh link so all could read it. At first I had a giggle, then I realised that this would be a sad day indeed. Already sounds like the LWB cars are on the short list to be "Daewoo-ised". It'd be very interesting to see the customer reaction....

*EDIT* the link isn't working so I've pasted the article below.

Football, meat pies, but cars from Asia
By Joshua Dowling Motoring Editor in Geneva
March 1, 2006

A COMMODORE made in Korea? It's possible, according to General Motors' head of global product development, Bob Lutz, who oversees Holden's Australian operations from head office in Detroit.

Speaking candidly at a preview to the Geneva motor show yesterday, Mr Lutz expressed grave concerns for the viability of the Australian car manufacturing industry if import tariffs remained low and the Australian dollar remained strong.

GM owns Korean brand Daewoo and in October 2002 Holden became the biggest stakeholder in the company, buying a 42 per cent share.

Holden is already increasing the number of small and medium cars it imports from Korea; the new Barina is a rebadged Daewoo Kalos and the Holden Viva is a Daewoo Lacetti.

By the middle of this year Holden will also begin selling a Korean-made four-wheel-drive to compete with the Ford Territory after the locally made Holden Adventra (an off-road version of the Commodore wagon) failed to meet sales expectations.

While Mr Lutz stressed that Holden had no plans to close its vehicle assembly factory in Adelaide (the same city in which Mitsubishi is struggling to survive) he said the Australian industry was "at risk" of being uncompetitive with its nearby Asian neighbours, which have lower labour costs.

"I tell you the Australian manufacturing industry is in a difficult situation right now," Mr Lutz told the Herald. "If the Government doesn't do something about it or the Australian dollar doesn't weaken, then I'm not sure what's going to happen. The Australian market really is at risk."

He said that while there were no plans at this stage to build the Commodore in Korea "it is possible and it is feasible" to do so. He said it was more likely that production of the Commodore - Australia's best selling car for the past 12 years - would remain in Australia for now but that other locally made Holdens which sell in relatively small numbers domestically but which are strong sellers in other countries (such as the Statesman luxury sedan), could be assembled in Korea.

"The new Statesman is going to be exported from Australia to China, Korea and the Middle East," Mr Lutz said. "If the export volume is strong, and it makes sense to build the Statesman at [GM's Korean division], then why not do it?"

Local car makers Holden, Ford, Toyota and Mitsubishi are struggling against the weight of imports. In 2001 imported vehicles accounted for 58.9 per cent of all new-car sales in Australia. In January 2006, imported vehicles accounted for 81.1 per cent of all new-car sales.

Japan is the single biggest source of imported vehicles (41.1 per cent in January 2006, according to the Federal Chamber of Automotive Industries) but Korean imports are growing, from 7.6 per cent of new-car sales in January 2005 to 9.9 per cent in January 2006.

[MethodX]

Doesnt matter, all part of being a multinational.
The Koreans keep getting better.

[new2ford]

Sadly this is the way it's heading for all the manufacturers with China being the big new location for car plants. Some of our manufacturers might also see it as the answer to the quality issue that continues to dog Australian made cars (albeit not as much as years ago). It's frustrating that most Australians are buying imports (in spite of the clearly superior design of some locals such as the Falcon and Territory) without thinking of the consequences this might have for the country, and indeed their own livelihoods down the track. An awful lot of jobs would go down the drain with closure of the local motor industry - both directly and those depending on it. The economic difficulties that would follow would be called 'structural adjustment' by the cold-blooded pollies of the right.

[Kenster]

new2ford with just about everything is all imports now a days due to cheap labour and company wanting to cutting cost to make more profit for themself so they could live in the life of luruxy and leave the common people to work overtime just to get a day work or lose they job

[Citric GT]

Great, more jobs to go.

[parawolf]

*sigh* if I could find the post from about 12 - 18 months ago either from here or ff.com then where I mentioned that the 2009/2010 Falcon will be built in China...

[MrSparkle]

Originally Posted by parawolf

*sigh* if I could find the post from about 12 - 18 months ago either from here or ff.com then where I mentioned that the 2009/2010 Falcon will be built in China...

... and I'll join you with my post from the same period categorically stating that Commodores will suffer the same fate! :

Yep I reckon we are on the money, the economic arguments for the cheap labour and components in China will *eventually* kill the local manufacturers. Ford HQ and GM HQ in the States will see the dollar signs (or yuan) and will get a fiscal hard-on (if they haven't already).

[SSBUB]

welcome to globalisation

[Falcon Freak]

I refuse to buy any Chinese manufactured Falcons.

FF

[apolloxbgt]

Originally Posted by Falcon Freak

I refuse to buy any Chinese manufactured Falcons.

FF

So if they move production to china and you refuse buy one,will you still be the falcon freak?

[RAREV8]

Originally Posted by SSBUB

welcome to globalisation

Very true! I studied the good ol' english ford escort when I was a nipper at school as it was a perfect example of a global car- 26 countries involved if I remember correctly and that was the markIII.

Still, it would be a shame to see the falcs and commys built in Asia. I am not an Australian (yet) but when I am living in a country, I will endeavour to support it as best I can. Both my Falcons old and new are Aussie built.

Thats the way I like to do things. it:

[Falcon Freak]

Originally Posted by apolloxbgt

So if they move production to china and you refuse buy one,will you still be the falcon freak?

I'll probably become AICCCF - 'anti imported cheap crap cars freak'.

FF

[Paxton]

Originally Posted by Falcon Freak

I refuse to buy any Chinese manufactured Falcons.

FF

I refuse to buy any Chinese made cars. Have you seen the new Volkswagen Golfs? Utter crap.

[OzJavelin]

Kind of makes me happy I've got a VY .. at least my crap assembled Holden was assembled here ..

[MrSparkle]

Originally Posted by Paxton

I refuse to buy any Chinese made cars. Have you seen the new Volkswagen Golfs? Utter crap.

Might want to check your geography (or the model you are referring to) on that one! :

The Golf is actually made in South Africa, and in spite of this, it's still demonstrably better built than any of the domestics. I think you're probably referring to the Polo (?)

If you want to see a REAL Chinese car, this is what you should refer to.
http://driving.timesonline.co.uk/art...783784,00.html

[Falcon_Phill]

Originally Posted by Falcon Freak

I refuse to buy any Chinese manufactured Falcons.

FF

Keep buying old ones :voldar02:

[ltd]

Originally Posted by MrSparkle

Might want to check your geography (or the model you are referring to) on that one! :

The Golf is actually made in South Africa, and in spite of this, it's still demonstrably better built than any of the domestics. I think you're probably referring to the Polo (?)

If you want to see a REAL Chinese car, this is what you should refer to.
http://driving.timesonline.co.uk/art...783784,00.html

Read the article, LOL at the name; LANDWIND.
Now all we gotta do is convince the chinese to name its successor BUMWIND.

Scary cars though, zero in crash tests is frightening. I hope we can do something to protect our local industry, as too many livelihoods depend upon it. I can't see the government doing nothing on the issue, as it would be political suicide.

[ltd]

Originally Posted by Falcon_Phill

Keep buying old ones :voldar02:

Then we can get to say that line from Mad Max; "She's the last of the V8's"

Better get that GT-P now (or as soon as I can afford it) me thinks.

[Homer1]

Originally Posted by ltd

Read the article, LOL at the name; LANDWIND.
Now all we gotta do is convince the chinese to name its successor BUMWIND.

Scary cars though, zero in crash tests is frightening. I hope we can do something to protect our local industry, as too many livelihoods depend upon it. I can't see the government doing nothing on the issue, as it would be political suicide.

What's even more scary is that there are people who will still buy these monstrosities just on price alone.

[new2ford]

Don't confuse a product made in China by a Chinese company with a product made in China for a Western company. Open the cupboards in your house and you will see just about everything in the latter category and its quality won't be too bad. parawolf and MrSparkle are prophets - it will come I'm afraid, so if you're a zealot you'll be walking eventually. What will be in real danger is that in this scenario the Detroit-based executives won't see what's so special about a unique design for the Australian market any more so the Falcon, Territory and Commodore will go out the door to be replaced by global models (which 800,000 Australians a year buy anyway). That'll be the real end of the Australian car.

The only way out of it is for the government to be a bit more proactive in ensuring that Australia retains any manufacturing industry at all. There's a lot of the inevitable here but I still get disgusted that people will buy an imported sedan in preference to a Falcon or a Kluger in preference to a Territory. Does the small perception of alleged better quality outweigh all the other factors? I just don't think they can see past the end of their nose (without wanting to verge on insult!).

[efgiar]

yeah i dont think i would purchase something made were mosquitos could be hiding behind interior panels ill stick with the aussy build fords

[new2ford]

Originally Posted by efgiar

yeah i dont think i would purchase something made were mosquitos could be hiding behind interior panels ill stick with the aussy build fords

So you don't mind bogong moths then?

[efgiar]

lol id rather die from an australian strain of disease rather then something coming from korea or china, i heard they can be pretty nasty.

[new2ford]

The other more positive scenario is to get these Australian cars onto the global market. Our design skills are already sold abroad. Certainly the Territory would find many markets, even Europe, if it had diesel and hybrid variants thrown in and the Falcon could go anywhere Holden has in the past. Some car manufacturing countries sell more abroad than at home. Our costs might discourage that but at least getting the designs out, even if some are manufactured overseas, would be something that might save at least the designs in the long term.

[The Stylist]

Not good news I'm afraid, I remember when the New Zealand government removed tariffs back in the mid-late 90's. The New Zealand car assembly industry just fell over and died because of the move, there used to be NZ assembled Telstars, Lasers and other makes and models too. No more.

Correct me if I'm wrong, but I've heard of the Aussie government lowering tariffs even further - things are looking very shaky.

[Des]

Originally Posted by The Stylist

Not good news I'm afraid, I remember when the New Zealand government removed tariffs back in the mid-late 90's. The New Zealand car assembly industry just fell over and died because of the move, there used to be NZ assembled Telstars, Lasers and other makes and models too. No more.

Correct me if I'm wrong, but I've heard of the Aussie government lowering tariffs even further - things are looking very shaky.

Your correct, the tariff's are supposed to be lowering. Bob's already fired a shot across the governments bow with his statments below. If that doesn't wake 'em up, then we're all ИИИИed.

[csv8]

I ИИИИed myself laughing at that !!! Another SSANG YONG Chairman ??? but built by Daewoo As a Commodore ??????

[vztrt]

Originally Posted by csv8

I ИИИИed myself laughing at that !!! Another SSANG YONG Chairman ??? but built by Daewoo As a Commodore ??????

Not that funny, cause if Holden go there Ford wont be far behind leaving to build cars for the Orient.

[parawolf]

Originally Posted by vztrt

Not that funny, cause if Holden go there Ford wont be far behind leaving to build cars for the Orient.

It will happen in approximately the same 6 month period. However Commodores look like they will be built in Korea, and Falcons are likely to be built by Ford in China in partnership with Mazda (Japan), Ford (Global) and Ford (China) - Western companies have to do 'partnerships' with Chinese companies to make it tax effective and want to make government processes easy.

You will see that the Falcon will become a global platform. It will be a stouch between the Falcon, similar to what we have today, and Crown Vic doing component sharing with the USA. I hope we get the Falcon.

[jmc-007]

its comming fellas sooner than you think. :thebirds: