Dumarey hopes for Toyota reverse

The would-be saviour of the locally-developed Commodore and Holden’s Elizabeth assembly plant, Guido Dumarey, believes Toyota could reverse its decision to close its Australian manufacturing plant if his proposal is successful.

The veteran Belgian business entrepreneur has made a speciality out of identifying struggling or dying businesses and resuscitating them and is convinced the Zeta architecture that underpins the Commodore and Holden’s flexible Elizabeth plant where they originate can form the basis of a profitable automotive enterprise.

He has devised a comprehensive plan dubbed ‘Project Erich’ to take over the plant and the architecture and develop premium and light commercial vehicle streams for local and export markets.

The Elizabeth plant in Adelaide is scheduled to close in late 2017 ending the life of the locally-developed Commodore. The Ford plant in Melbourne closes in October 2016 ending Falcon and Territory production, while Toyota’s Altona plant that builds the Camry and Aurion ceases production late 2017.

“When there is a future for the Elizabeth plant there is perhaps a possibility that Toyota will not close,” Dumarey told motoring.com.au.

“They (Toyota) decided in fact because the other two [plants closed]. I think the first plant [Ford] will close in October 2016 and that is like it is.

“I think for Elizabeth there is an opportunity and I think if there is enough support then Toyota will rethink. That is because they have decided because of the other two and they have decided at a moment when the currency is very negative.”

Dumarey is under no illusions that an about-face by Toyota would be an even longer shot than Project Erich gaining the green light.

He has already made a series of lobbying visits to Canberra since the plant closure was announced in late 2013, but apart from gaining the support of independent South Australian senator Nick Xenophon, admits he has made no progress.

“Up to now nothing positive,” Dumarey told motoring.com.au.

“We are standing on the beginning.”

“We will do everything what is possible to achieve our goals. Judge me on the result and give me a fair go, that’s it.”

Dumarey confirmed he would be back in Australia early in 2016 to present Project Erich and try a get a deal done.

A cornerstone of Dumarey’s plan is significant export program for both the premium and LCV streams, exploiting the Zeta rear-wheel drive architecture.

“There are opportunities in the world. Like African countries, like Iran. Iran is a country who is looking to something for an automotive industry,” he insisted.

“From Australia you can export to China without import duties in 2018. Okay, they can bring them from there, but they have no rear-wheel drive platforms, they have only front-wheel drive platforms.”

Dumarey has made it clear he needs government support through the Automotive Transformation Scheme funding and a willingness from General Motors to hand him free license to the rear-wheel drive Zeta architecture so he can develop new models.

“There is funding from ATS of nearly $800 million at the moment, I think… It must be correctly used and I think everybody who stays in the automotive industry must have rights to that.”

Dumarey said he was confident he could assemble a management team to run the new company, recruiting staff from Ford, Holden and Toyota.

“Out of the three car companies of GM, Ford and Toyota I can make a nice team, because when they all disappear all these people are on the market,” he said.

“Okay at a younger age they say they leave the country, but people my age around 55 to 56 say ‘I better stay’ and I think this group of people there is the opportunity is take onboard and do it.”

Dumarey has made it clear he using many of the lessons learned out of his takeover of the Genera Motors transmission plant in Strasbourg, France, in 2012, for the pitch to take control of Elizabeth and Zeta.

“When we have the opportunity to do this we must be flexible, flexible, flexible,” he said,

“The labour is the labour cost, we cannot do anything about that. We must do it from the flexibility.”

At Strasbourg he has progressively brought more supply sources in-house and says that would be the key for Elizabeth.

“Vertical integration, that’s the whole story,” he said.

“That way we can beat everybody,” Dumarey stated.