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NEWS
Ford: Holden issues official statement
Devereux calls for on-going government support and "consistency" in policy-makingHolden MD Mike Devereux and his PR team have put together an official response to Ford's announcement today that Broadmeadows would end local production from October 2016.
We've reproduced his statement below, which was followed by a Q&A session, in which the head honcho at Holden outlined his views on what ramifications this news will have for parts suppliers in Australia and how government should proceed with supporting the local industry.
"There is a different story, frankly, for every supplier," Devereux observed. "Some of them have more exposure to us – or Toyota or Ford. Some supply all three. For those parts makers that are 100 per cent Ford, obviously this is going to have impact on them, but we have a very tight relationship through a process called our supplier council.
"We've been working very closely with our suppliers to improve not just efficiency and effectiveness, but working on things like Six Sigma – to make a really world-class supply chain. And we're going to continue to do that."
Such close cooperation between Holden and its suppliers can ultimately help those companies stay afloat and perhaps even flourish, depending on what takes place in world markets and how the Australian dollar will be valued in the future. Devereux is hopeful on behalf of those suppliers. While Commodore may not deliver those suppliers the broader global markets they need to survive, Cruze might, since it's a global architecture, as Devereux explained.
"One of the things that we talk about, when we are dealing with global architectures, is that you do open the ability for world-class suppliers to reach beyond just the vehicles that are made in this country, when you are building the types of vehicles that are also built in other places.
"For those world-class suppliers... Diver Industries for example, making parts for the Camaro that is built in Canada and sold across North America – engineered in Australia, I might add. There are examples of suppliers that are world-class, that know how to do it better than anybody else, that can overcome these challenges."
Devereux stayed on song with his comments concerning government assistance for the local industry. In the past he has told motoring.com.au that such government support was effectively essential for Holden to continue building cars in this country. Clearly his views are informed by the Gillard government's various decisions to introduce the carbon tax, rescind the Green Car Innovation Fund and demote Senator Kim Carr.
"There is no question the economic conditions facing the entire country are a little different than they were two years ago. We have conversations, every week with both sides of [politics]. I think both sides of the equation understand how critical the auto industry is to the country... and how plugged-in manufacturing is, in terms of its viability in this country, to auto making. We're going to continue to have those very strong conversations.
"Competitive, consistent, certain policy is what we need, and with that, I truthfully believe that not only can auto-making in this country survive, but I believe it can thrive. It starts with making products that people want to buy. Even in the last months of its seven-year life, the Commodore is still a top ten-selling car; we believe this new one's obviously the best car ever made in the country, and that it will be a top ten-selling car. The Cruze was the fourth-best selling car in April..."
Devereux remains confident about the VF Commodore's prospects, notwithstanding its major competitor is setting a new and unfortunate precedent for local large-car production. Much is riding on the sales success of the Commodore-based Chevrolet SS (pictured) in North America.
"When you talk about what's going on with the dollar, we will export more cars over the next 12 months than we have in the past 12 months. In the face of all of this, we WILL export more cars. We are just about to start exporting this car [VF Commodore] to the United States as a Chevy SS, under these unprecedented conditions. I think that's a testament to the talent of the people at Holden, and the dedication to making things in this country."
His relentless positivity on the surface mostly conceals any outward sign that the Holden MD is in a pressure-cooker situation – and while recent government funding provides a lifeline for the Elizabeth factory, there'll be other challenges for Devereux to reconcile before his posting in Australia ends.
"I have to steer through the ups and downs... in the currency, I have to steer through the ups and downs in the news cycles, and focus on the long-term goals of the country and the company called General Motors-Holden. That's exactly what we're going to do."
HOLDEN STATEMENT: Ford’s withdrawal from manufacturing in Australia
The following statement attributable to Holden Chairman and Managing Director, Mike Devereux
"The announcement by Ford today is a reminder of really just how tough it is for manufacturers in Australia... even the most committed, like Holden, which is bringing out the most technologically advanced car ever made in Australia.
"The new Commodore is a car that is a class above, and will change minds. It is a critical role in Holden's long-term future in Australia, and we expect that the Commodore will continue to be one of the top ten-selling cars in this country, which is really something everyone should remember.
"Despite Ford's announcement to end local manufacturing, we believe the industry can survive in Australia, and has already adjusted in large part, given Ford's relatively low production volumes.
"Holden set out a 10-year manufacturing plan that was agreed with the Australian government in 2012, based on the economic and market conditions at that time. That plan would see Holden inject a billion dollars in this country, and secure production of two all-new global vehicles all the way out to 2022. The industry needs swift action to make Australia's auto policy settings clear, consistent and globally competitive, as quickly as possible.
"Holden is working closely with the Australian government, the federal coalition and state governments to ensure the viability of the industry in the face of the historically significant economic challenges facing the entire country."
Follow other Ford news on www.motoring.com.au:
Ford Australia to cease local production
Falcon nameplate dead, Territory undecided
Ford research and development to continue
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Written byKen Gratton
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