Holden boss calls for closure respect

GM Holden boss Mark Bernhard has called for respect to be shown to the company’s Elizabeth factory workers tomorrow (Friday, October 20), when the assembly plant shuts down.

He has also expressed his belief Holden will continue to be an Australian automotive industry leader after the closure, although he concedes sales won’t be helped at least initially by the end of production of the locally-developed Commodore.

Bernhard, who will spend the day with Holden workers in Adelaide, said it would not be appropriate for the day to become a circus.

The closure will come 69 years after the first Holden 48-215 rolled off Holden’s Fishermens Bend production line.

Nearly 3000 people will have lost their jobs at Holden by the time production ends, excluding staff at suppliers.

The closure ends local assembly operations in Australia, as Toyota finished up earlier in October and Ford 12 months ago.

No outsiders will be permitted into the plant on Friday.

“The final day will be a closed day for the employees, it will be an opportunity for us to treat them with dignity and respect. We don’t want a circus,” said Bernhard.

“It is a day that is going to be difficult to manage because I think people outside the business are going to have expectations,” added the Holden chairman and managing director.

“But our first priority is going to be to the people and hopefully we can get a lot of respect; not just from media, but from enthusiasts and people who want to be there.

“That respect will be really important to me.”

While Holden’s status changes from manufacturer to importer, Bernhard insisted the company would still be separated from other automotive brands by the retention of local engineering input into vehicle dynamics and the location of a GM design centre at Fishermens Bend.

“Frankly, Holden has been known as Australia’s own car company. We are iconic. We have built the car industry here,” he said.

“I think it’s important that we continue that legacy and it’s why holding on to design talent here in this country and holding on to engineering talent here in the country and being able to tune vehicles for Australian driving conditions [is important].”

Bernhard also nominated the introduction of GM’s Maven ride-sharing service and the return of Onstar “in a few years’ time” as acts of an industry leader.

The company has also recently announced a seven-year warranty for new vehicles until the end of 2017.

“It’s important as we do that we continue to be a leader in the industry and we have to put building blocks in place,” he said.

“GM is stamping its leadership positon for the future and we get to leverage that work that GM has and we are well on that path.”

Among those building blocks he cited a wider choice and higher quality product line-up including the Equinox and Acadia SUV, and next year’s imported, Opel-sourced ZB Commodore.

He also quoted improving customer satisfaction ratings including the highest service retention rating in the company’s history.

“We have got to focus on those things that are going to take us forward for the long term and I think all those building blocks are there to get us forward in the future and enable us to win and be the best automotive company that we can be,” he said.

“So I think we are a lot more than just one of the pack. I don’t come to work thinking we are just one of the pack, I come to work really proud that we are up near the top of that pack.”

But Bernhard concedes sales won’t be a measure that will initially be a positive. Holden hasn’t been number one in the market for 15 years and it currently languishes fourth with a 7.0 per cent share. Sales are already down more than 9000 year-on-year and with the end of the local Commodore that is bound to take a further hit.

“I think there is an understanding that as the next-generation Commodore comes it’s not going to sell in the same volume as the locally made Commodore,” Bernhard said.

“But that’s why we have had the support from the parent in terms of investment into the product portfolio and providing us with product that is specific to Australia.”

Bernhard, who is the first Australian-born Holden leader since John Bagshaw in the late 1980s, started with the company in 1986 and rose through GM global leadership. He was Holden chief financial officer during the GFC and took over as chairman and managing director in 2015.

“There is no question it is going to be very, very sad,” he said of the Elizabeth closure. “I was fortunate enough to be with the wonderful team we had at the engine plant on their last day (November 2016). It is a very surreal feeling.

“But it is also a celebration. So while it’s going to be sad and surreal, I would like to think everyone will walk out of that plant with a smile on their face because of what they have achieved."