Report: Aussie Editor Says Recession will Kill GM's Holden Unit
As speculation grows on whether or not General Motors will be filling for bankruptcy, questions arise on the future of the company's subsidiaries such as the firm's Australian unit, Holden. In a report on the future of Australia's automobile industry from AAP that was hosted on several news sites, Clive Matthew-Wilson, Editor of the car buyers Dog & Lemon Guide, claims that Holden will most likely be the first carmaker from Down-Under to bite the dust due to the recession. "It's not a matter of whether they close down, but when they close down," said Matthew -Wilson referring to Holden, Ford and Toyota Australia.On May 4, Holden slashed the Commodore's production of its in half at its in Elizabeth plant in South Australia in response to slow sales and a shift in Australian buyers taste to smaller vehicles. Matthew -Wilson told AAP that this move 'signaled the beginning of end for Holden'.
"Globally, there's 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 won't be economically feasible," he said.
In concern of Holden, we'd also add that, even if the future of the Australian auto industry as a whole wasn't so pessimistic as portrayed by Matthew-Wilson, with the reorganizing - bankruptcy -call it whatever you want of GM that is already trying to get rid of many brands like Hummer and Saab, Holden's outlook would still be seen challenging.
Source: AAP , Via: SMH
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