VE Commodore to be Half Foreign

[MADDER]

Well here we go, from "The Australian" and www.news.com.au

LINK

Commodore to be half foreign
From: By Robert Wilson
August 30, 2005

ALMOST half the components on the Holden Commodore will be built overseas when the latest version of Australia's most popular car is released next July.

Industry experts estimate that just 55 per cent of products installed on Holden's VE Commodore will be produced by local suppliers, compared with 75 per cent in the current model.
Faced with falling sales in its core large-car segment, and the failure of its locally developed four-wheel-drive models, Holden has dumped local component makers and sourced parts from as far away as Mexico, Thailand, the US and China.

Automotive industry sources say at least seven Australian-based suppliers have been replaced with overseas competitors, with the car's glass, differential, plastics and electronics now coming from abroad.

"Some of it has been forced on them, such as importing their engine blocks from Mexico, after (component maker) Ion went under," one source said. "But there's clearly been, shall we say, a robust pricing policy at work."

Remaining local components in the new Commodore include most of the engine, body panels, seats and air-conditioning.

Holden - the local arm of US automotive giant General Motors - is also a major Australian exporter, shipping more than 50,000 cars and almost 150,000 engines each year from its plants at Elizabeth, in South Australia, and Fishermans Bend, in Victoria.
Holden told workers at its Elizabeth assembly plant on Thursday that a raft of issues, including falling demand for its Commodores, would see daily production slashed from 855 to 620 vehicles and jobs cut from 5700 to 4300 from next January.

Holden will achieve this by cutting the third shift at the plant. Officials from the Australian Manufacturing Workers Union met company management yesterday as employees were briefed on the voluntary redundancy package.

The AMWU believes up to 900 workers will accept an offer comprising 4 weeks' pay plus 3 1/2 weeks' pay for every year of service and any long-service or other benefits. For the average Holden employee with 10 years' service, that equates to about $42,000.

The union has asked the company to keep the job cuts to less than 1000 until the new Commodore is released next July.

While Holden had dropped some local suppliers, it had invited others to participate in the VE program, spokeswoman Maya Donevska said.

Japanese body panel maker Hirotec, German transmission company ZF Lemforder and seat-maker Johnson Controls were building facilities in Adelaide near the Holden factory, she said.

"Holden's policy is, all things being equal, we prefer to use Australian suppliers but we have to remain globally competitive," Ms Donevska said.

The VE Commodore will be the least Australian of the four car models built here.

By their manufacturers' figures, the Ford Falcon and Territory are 85 per cent Australian, the current Toyota Camry is 79 per cent locally made and even Mitsubishi's 380 large car will be 62 per cent locally made, despite using an imported engine, when it is released next month.

Graeme Billings, an industrial analyst at PriceWaterhouseCoopers, said small suppliers that made up the bulk of the local components industry were battling multinationals that often had strategic reasons for working in the region.

[Sourbastard]

Originally Posted by MADDER

"Some of it has been forced on them, such as importing their engine blocks from Mexico

You can get 700km's per tank of premium tequila.

[chevypower]

It would be very difficult to have most parts Australian, even if ALL the parts were manufactured overseas, and the car was just assembled here, its still a lot of staff Holden (or Ford) are employing, from factory, corporate, development, sales etc - the situation is still a lot better than that and I totally agree with global competition

[DA68ZA]

Originally Posted by sourbastard

You can get 700km's per tank of premium tequila.

nope be just like the ls1 use heaps of oil and rattle its heads off

[MrSparkle]

If there are *substantial* savings to be had by importing, then at least some of these savings should be passed on to the consumer as either improved standard equipment levels, or reduced RRP (yeah right, as if!). In the case of VE, I think neither will apply. There will be a natural progression in equipment but most likely not in line with the sourcing change savings.

The biggest worry will be if the car is 100% Chinese - has anyone seen what their domestic market is vomiting out these days? Oh dear! :

[merlin]

Remaining local components in the new Commodore include most of the engine

I guess they are not talking the V8 models here? It would be a lot lower than 55% if they were.

[MITCHAY]

Lol 55% is still more than half. Really doesnt matter if its 55%,40% or 10% if its still a good product then id still buy it if thats what i wanted.

Like was mentioned in another thread the "Aussie %" factor doesnt matter much to most people.

I do agree though if it does come as cost cutting to Holden they should pass some of the savings down to the motorist.

The downside is people lose their jobs which is bad in any industry but at the end of the day a person isnt going to buy a car from another company just because Holden layed off some people.

I mean would people here buy a Commodore instead if Ford layed off workers?

[JC]

Momo gear for the falcons is made in Mexico, and they still charge $800 for a wheel. It's not all about cost, it's about profit. ie where can I source this part from to make the maximum profit? Even if costs were dramatically slashed by importing everything and assembling locally, the only things that would change would be the profit margin, and the unemployment rate.

[AUIII XR8 MAN]

Originally Posted by JCXR8

Momo gear for the falcons is made in Mexico, and they still charge $800 for a wheel. It's not all about cost, it's about profit. ie where can I source this part from to make the maximum profit? Even if costs were dramatically slashed by importing everything and assembling locally, the only things that would change would be the profit margin, and the unemployment rate.

Sad but ture.

[Sourbastard]

ok, now...which half was foreign made?

[RED_EL_XR8]

The Engine! its US of course!!

[clampy]

at least the pic is accurate in including the current IRS setup found on VT-VZ comodores..

did a blind man type your sig there red_el_xr8? land of the blind of the blind?

[Ryan]

Doesnt matter to me if it was 1% Aussie and 99% foreign I would still buy it.

When I buy a car its country of origin or its parts country of origin means sh*t to me.

[RED_EL_XR8]

Originally Posted by jmartion

did a blind man type your sig there red_el_xr8? land of the blind of the blind?

No but he did have a stutter! :nutsycuck

[Bossxr8]

Holden means a great deal to Australia. I'm guessing that Holden are doing it to reduce costs because GM knocked back the platform Holden spent millions developing, and without a big number of vehicle sales to spread development costs over it needs to take as much cost out of the VE as possible.

[Chucky]

Unfortunately it's the way all manufacturing is going in Australia at the moment.

I'm in the traffic industry & I've gotta tell you Chinese imports are killing us. People don't give a rats **** that the imported products are inferior or that they don't even meet the required Australian Standards, the all mighty dollar is ruleing the roost.
Something needs to be done about imports or in the next 10 years the amount of manufacturing jobs in Australia will be roughly half what they are now. Think about what that will do to the ecomony.

[Blue Oval Mopar Man]

hahahahahaha, Where the hell have you been ! Hasnt the commonwhore been half overseas designed since its inception in 1979 ????????????

[Ryan]

Originally Posted by Blue Oval Mopar Man

hahahahahaha, Where the hell have you been ! Hasnt the commonwhore been half overseas designed since its inception in 1979 ????????????

I believe that is true.

Oh btw it was 78 not 79 when the Commodore was first produced

The Commodore has never been fully Australian but who really cares? I sure dont.I mean who here buys a Falcon based upon it being more Aussie then most cars?

Holdens are still BUILT HERE IN AUSTRALIA no matter how you look at it.

Thats Aussie enough for me.Its not like their built in Germany then exporting over here.Forgive me if im wrong but isnt the BOSS V8 a American engine?

[chevypower]

Cant have everything, cheap cars, and good quality, and manufacture it here where minimum wage is one of the highest in the world - It's peoples own responsibility to make their own money, it's not Holdens responsibility, it's not my responsiblity. We are all human beings wherever we live, if somebody overseas can do the same thing for a cheaper price, then unless the local person is willing to compete, that person should then look at doing something else for a living.

It's almost like how people want everything in their cars (all the equipment) but complain when it's weight increases also.

[Falcon Freak]

The Commodore has never been fully Australian but who really cares? I sure dont.I mean who here buys a Falcon based upon it being more Aussie then most cars?

I do as it is the last locally designed and manufactured vehicle. The Falcon epitomises what the small Australian automotive industry is capable of. It never receives the recognition it deserves for this achievement. It deserves to wear the title 'Australia's Own'.

The Commodore is unique to Australia. However Holden take bits and pieces from overseas GM models and do a mix-n-match to produce the Commodore. The body is originally designed by Opel and the V6 and V8 engines are designed by GM in the US.

Toyota's Camry and Avalon are almost identical to equivalent models manufactured in other countries. There are subtle differences for the local models and some local content is used.

The just superseeded Magna was based on the Japanese market Diamante. The new Mitsubishi 380 is identical to the US Mitsubishi Galant from the base of the windscreen to the rear of the car.

So in conlusion if you want to buy a car which is designed and built in Australia then the most logical candidate is the Falcon. And this is one of the reasons why I am a Falcon man.

"Falcon - Australian and proud if it!"

FF

[CAMS290]

Originally Posted by VY18s

Forgive me if im wrong but isnt the BOSS V8 a American engine?

You are forgiven and yes !!! you are wrong !!

They are built here from imported and locally produced components

[Falcon Freak]

Commodore to be half foreign.

"Holden means a great deal to Australia". :

FF

[TZENU]

This is not good for the Aussie economy thats for sure!!!
its just goin to further increase our trade deficit.........
Unfortunately there is already more than enough tax on imports (through duties) and even quotas..... and it still hasnt slowed imports down....

Maybe a total ban on anything other than local produced cars might help :

[Psycho Chicken]

I love free trade agreements.

[BuuBox]

It seems that while most Australians like the high standards of living here, they don't seem to support local industry. Self defeating, to a very large extent.

[M14A-Mclaren]

Wonder what impact it will have on sales, I know some people buy Holden cause they think its local.

[BuuBox]

I don't think it'd be all that much. If it counted for anything, you'd think Ford would advertise the fact that it's 85% Australian.

Mitsubishi tried it a few years back, and look where that got them.

[Black XR6]

So what percentage of the current model falcon is locally produced?

[XplosiveR6]

Originally Posted by Black XR6

So what percentage of the current model falcon is locally produced?

85%, which is pretty good

[Black XR6]

If thats the case it is very good.

Why dosnt ford marketing jump on this chance to show just how Aussie fords falcon is compared to Holden. Try to break some of the Football, meat pies, kangaroos and Holden cars rot. It aint slander or defanatory if its true.