4 day week at Holdens

[bobthebilda]

http://www.abc.net.au/news/stories/2...section=justin

Maybe they have realised that making less cars might be better than selling lots at below price. With a one week OFF, one week ON roster, the workers would now be on 4 day fortnights. But as is with all the Holden advertising spin, they still plan to bring back a second shift LOL.

[Paxton]

Bloody hell.

Cheese and chalk between the two. Ford is at full (admittedly smaller) capacity, and Holden is having one down day a week. MMAL weren't that bad.

[bobthebilda]

Originally Posted by Paxton

Bloody hell.

Cheese and chalk between the two. Ford is at full (admittedly smaller) capacity, and Holden is having one down day a week. MMAL weren't that bad.

Well I heard that Holden were making 320 a day, thus over the 9 week period that they are shut for one and then 8 @ 4 days, they would make 10240 cars. If ford made 280 a day for 9 weeks, they would make 12600 cars. In that time they should launch an advertising campaign "Australia's second largest car manufacturer 9 weeks running"

[jpd80]

An example of a smaller plant and workforce being worked hard
that's contrasted by a large plant and workforce under producing....

You tell me which plant is more efficient.

[Brazen]

Hopefully the workers can make ends meet for the time being. The problem is that Holden has to basically bide time till export orders resume and new models are released. They must be counting down the days to the VF and Cruze.

Just yesterday he was saying that things were pretty good. Interesting his comment on exports. I cant imagine shutting a car factory down 1 day a week to be very economical.

21 April 2010
By RON HAMMERTON
GM HOLDEN’S fifth chief executive in three years has promised he is here for the long haul with a mandate from parent company General Motors to ensure the Australian company survives and thrives as one of only seven GM sites capable of designing, building and selling its own products.

Mike Devereux, a British-born, Canadian-raised 26-year veteran of GM, today said Holden was already trading profitably after its “horrific” $210.6 million loss last year.

In his first media conference just one week after becoming Holden's newest chairman and managing director, he also indicated the company could continue to do so on the back of domestic sales after the collapse of much of its export volumes to the United States and the Middle East.

“The business is pretty healthy right now,” he said. “We don’t need a ton of export recovery to make money in Australia.”

Speaking after a whirlwind seven-day introduction to Holden since arriving from Dubai and his previous position as GM Middle East Operations president and managing director, Mr Devereux replaces a string of quick-fire MDs, most of whom were snatched away from Holden to shore up the management ranks elsewhere in the GM world.

Left: Holden VE Commodore assembly. Below: Holden-designed and engineered Chevrolet Camaro.

Since Denny Mooney sat on the MD’s chair at Fishermens Bend in 2007, Chris Gubbey, Mark Reuss and Alan Batey have all come and gone in quick succession as – back at headquarters in Detroit – GM fought to stave off complete financial collapse in the global financial crisis.

"You've seen a series of folks through this particular chair because, frankly, the company went through hell and back in the past two years,” Mr Devereux said.

"We stared over the edge."

But the newcomer promises this time it will be different, with GM chairman Ed Whitacre intent on letting the new global management team settle in for the long term to get on with business.

“Now that we have got what we call ‘the deck chairs laid out’ at General Motors, it is our intention to let managing directors and regional presidents run their businesses for long-term periods,” Mr Devereux said.

“Frankly, in GM’s history, that is what we have generally done.”

Mr Devereux said he had no intention of making changes to the plans laid out by his predecessors.

“The plans that were set in place by Mark Reuss and Alan Batey are rock-solid plans, and I don’t see that I will be coming in here and changing any plans,” he said.

“My management style is enable culture and let that drive what people can get accomplished. So I don’t see any strategic differences.

“Alan (Batey) and I have known each other for a long time. We had a very good solid handover period, and Alan’s plan is my plan.”

Among the plans are the roll-out of the locally-made Cruze sedan and hatch early next year and introduction of the ethanol-fuelled E85-capable Commodore later this year.

Mr Devereux – who had dinner with federal transport minister Kim Carr at an innovation event on Monday night – ruled out the need for any federal financial assistance, saying Holden was happy with its finances and future potential, despite last year’s loss that included $223.4 million in one-off charges for restructuring costs.

“We have had a strong start to 2010,” he said. “We are not claiming victory, but we expect 2010 to be a very good year for Holden, and when we post our results next year, hopefully they will not need any explaining.”

Mr Devereux said the market rebound was “already upon us”, but it was too early to say when Holden would restore the second shift that Holden axed at its Elizabeth car plant after the collapse of its Pontiac G8 export deal early last year.

“It is totally our intention to bring back the second shift,” he said.

“We are not ready to do that right now. The market is making some gains. We like where we are, but what you have got to remember is we are starting from a long way back.

“We had an unprecedented horrific year, and we had an unprecedented horrific year as an industry – not just Australia.

“When we are in a position to increase volume and ship cars, we are going to do that, but we are going to be talking with our union before we talk with anybody else, and we are not in a position to do that today.”

Mr Devereux said Holden did not necessarily need a lot of exports to make money in Australia, saying: “We are running our business extremely well right here. The rebound is already upon us.”

However, he said he would chase every export opportunity for Australian-made product, adding that the company had two handy allies in the US – former Holden MDs Mark Reuss, now president of GM North America, and Alan Batey, now vice-president of sales and service for Chevrolet.

Mr Devereux said Holden’s greatest strength was its workforce, which he described as “car guys”.

“Everybody here understands the business, and that is a huge untapped asset for General Motors and something, given my background in the States, that I will be trying to leverage here,” he said.

“We have an incredible talent base in Australia by virtue of the fact that one of the most iconic products we have in the United States, the Camaro, was fully designed and engineered at GM Holden, so the place has an incredible amount of confidence placed in it by GM.”

Mr Devereux praised the Australian government’s relationship with the motor industry.

“Australia has a thriving auto industry and I see absolutely no reason, seeing as how intelligently the government is approaching this public/private partnership, why that would not continue,” he said.

Mr Devereux, 44, holds a science degree in industrial engineering and a master’s degree in business administration from Harvard.

He joined GM as a co-op student at a Canadian engine plant and has held positions in product development, sales and e-business.

http://www.carsales.com.au/news/2010...n-steady-19094

[FPV GTHO]

Originally Posted by jpd80

An example of a smaller plant and workforce being worked hard
that's contrasted by a large plant and workforce under producing....

You tell me which plant is more efficient.

The sad thing is, its really only relative. Just 6 years ago Holden were doing ~150K units on triple shifts but Ford could could put out 100K on a single shift. Had Ford run on triple shifts, with appropriate product demand and parts supply why couldnt they push out 300K units running the same schedule as Holden?

[bobthebilda]

Well they have obviously seen something into the future demand of the car (something that general motors and holden aint too famous for), or they have built up an excess of stock (maybe overhang from depreciation allowance ending). Regardless, maybe we should be taking a vote on what car will the largest selling car in australia in May, June and July. Hilux - Mazda 3 - Hyundai I30. I'm going for the I30

[vztrt]

Originally Posted by bobthebilda

Well they have obviously seen something into the future demand of the car (something that general motors and holden aint too famous for), or they have built up an excess of stock (maybe overhang from depreciation allowance ending). Regardless, maybe we should be taking a vote on what car will the largest selling car in australia in May, June and July. Hilux - Mazda 3 - Hyundai I30. I'm going for the I30

It would be overstock, they were building high amounts of cars.
I guess they will need the cruze to go ahead. Or somehow get rid of that second shift and run only one shift.

[jpd80]

Ever get the feeling that GM is whistling in the dark.....

[sgt_doofey]

Originally Posted by carsales

“Now that we have got what we call ‘the deck chairs laid out’ at General Motors, it is our intention to let managing directors and regional presidents run their businesses for long-term periods,” Mr Devereux said.

They're arranging the deck chairs on the Titanic again I see.

[anto]

ha ha now thats funny

[bobthebilda]

Originally Posted by vztrt

It would be overstock, they were building high amounts of cars.
I guess they will need the cruze to go ahead. Or somehow get rid of that second shift and run only one shift.

But dont Holden normally solve the overstock problem by discounting heavily. Where on earth would they have come up with a concept of making production equal demand.

You would probably have to assume Holden and the Melbourne storm have the same accounting team. Tell the public and authorities one thing, but keep a second set of books, that show something else.

[Fordman1]

This is going to end in tears ! :

[vztrt]

Originally Posted by bobthebilda

But dont Holden normally solve the overstock problem by discounting heavily. Where on earth would they have come up with a concept of making production equal demand.

They were full to the brim just before the GFC, they have a lot of stock.

[Paxton]

Originally Posted by vztrt

They were full to the brim just before the GFC, they have a lot of stock.

Hey, don't worry. The Holden Owner's Grant is back.

[Brazen]

Originally Posted by bobthebilda

Well they have obviously seen something into the future demand of the car (something that general motors and holden aint too famous for), or they have built up an excess of stock (maybe overhang from depreciation allowance ending). Regardless, maybe we should be taking a vote on what car will the largest selling car in australia in May, June and July. Hilux - Mazda 3 - Hyundai I30. I'm going for the I30

My gut says that for the i30 to be the biggest seller they would need a sedan variant. But they are selling pretty bloody well with just a hatch and wagon.

[EDManual]

Originally Posted by Brazen

My gut says that for the i30 to be the biggest seller they would need a sedan variant. But they are selling pretty bloody well with just a hatch and wagon.

A hyundai ELANTRA is a sedan i30. Its just named differently. Shape from behind back door forward is near the same, interior is the same, engines the same etc etc.

[Joe5619]

Originally Posted by bobthebilda

Regardless, maybe we should be taking a vote on what car will the largest selling car in australia in May, June and July. Hilux - Mazda 3 - Hyundai I30. I'm going for the I30

Maybe the humble Falcon might win!! Surely 50th year anniversary adds & models will be around!! Nice way to celebrite the 50th year with a sales win?

[prydey]

just to play devils advocate...

how many people bought a bf2 only months out from the release of the fg? if holden are actually releasing a new commodore in a few months, then cutting back production to limit the amount of 'old' cars sitting around would be the smart thing to do wouldn't it?

back to reality.. i thought there was a delay with the aussie built cruze. they talk like its still going ahead in 8 months time.

[Fordman1]

Originally Posted by prydey

just to play devils advocate...

how many people bought a bf2 only months out from the release of the fg? if holden are actually releasing a new commodore in a few months, then cutting back production to limit the amount of 'old' cars sitting around would be the smart thing to do wouldn't it?

back to reality.. i thought there was a delay with the aussie built cruze. they talk like its still going ahead in 8 months time.

They have no option... Cruze is locked in, and the sales will be strong, but the profits will be non existant.

New Commodore ? I'm predicting no sheetmetal and basically trim and detail changes.

They have too many cars, but they'll spin the fact that they are making a good decision based on runout. The fact is they can't sell the cars they have so they need to cut back...

Fact... the market is growing, sales are increasing as a whole industry and yet Holden are scheduling downdays... the FAIL is strong here !!

[Chilliman]

Originally Posted by Barraxr8

They have no option... Cruze is locked in, and the sales will be strong, but the profits will be non existant.

New Commodore ? I'm predicting no sheetmetal and basically trim and detail changes.

They have too many cars, but they'll spin the fact that they are making a good decision based on runout. The fact is they can't sell the cars they have so they need to cut back...

Fact... the market is growing, sales are increasing as a whole industry and yet Holden are scheduling downdays... the FAIL is strong here !!

They've really backed themselves into a corner haven't they - the media may go on about the Falcon being replaced by the Taurus, but at this rate the Commodore could well be replaced by the Cruze!!!

[irish2]

Originally Posted by prydey

just to play devils advocate...



back to reality.. i thought there was a delay with the aussie built cruze. they talk like its still going ahead in 8 months time.

The cruze was slated for 4th quarter of 2010. Releasing the car in 2011 is therefore the delay you heard about.

[vztrt]

http://news.theage.com.au/breaking-n...0422-tf05.html

Holden to cut production of Commodore
TIM DORNIN
April 22, 2010 - 4:19PM

AAP

Car maker Holden will cut production at its Adelaide assembly operations in July and August as it runs out the current model Commodore.

The company has reached an agreement with the car industry union to shut down the factory for 13 days across the two months to reduce stocks of the current Commodore line-up.

"Ahead of updating our locally produced Commodore range later this year, we need to prepare for a smooth run out of the current model within the plant," a Holden spokesman said.

"To do this, we have been working with the union to balance short-term manufacturing plans that will allow us to taper production of the current range, before ramping up with the new model."

Holden said it had enjoyed a strong start to 2010 and anticipated a great response to the updated car.

In March Holden sold 4209 Commodores, a 19 per cent improvement on the same month last year.

Commodore sales in the first quarter were up by 14 per cent.

Earlier this week, new Holden chairman and managing director Mike Devereux said the company still intended to return the Elizabeth assembly plant to a two-shift operation after the restructuring forced by the global downturn.

The plant currently operates on one shift with staff working one week on and one week off on reduced pay.

The system allowed Holden to avoid major job cuts at the height of the economic crisis and the slump in exports to the US.

"It's totally our intention to bring back a second shift but we're not ready to do that at Elizabeth right now," Mr Devereux said in a phone hook-up with motoring journalists.

"The market is making some gains and we like where we are but we're starting from a long way back.

"We had an horrific year as an industry, not just Australia, last year.

"So when we're in a position to increase the volumes and shift patterns we're going to do that."

Mr Devereux said Holden was also on track to launch the new locally-made Cruze small car in early 2011 and expected to return its Australian operations to profitability this year.

© 2010 AAP

[Joe5619]

I just can't understand how they can be cutting back in a year they have double digit growth in sell through. It can only mean they have massive stock levels. Yet over at Ford, they simiply can't build enough & need to work Saturdays..


I do feel sorry for the workers, half pay every 2nd week & now 8 weeks of 4 days only!! Ashame some of those works cant be sent to Ford

[cosmo20btt]

Originally Posted by Joe5619

I just can't understand how they can be cutting back in a year they have double digit growth in sell through. It can only mean they have massive stock levels. Yet over at Ford, they simiply can't build enough & need to work Saturdays..


I do feel sorry for the workers, half pay every 2nd week & now 8 weeks of 4 days only!! Ashame some of those works cant be sent to Ford

This makes a bit of sense as over time I have heard mummers that Holden had always put through any purchase orders as sales, so if some one did not purchase a Holden it still went though as a sale. However very hard to prove.

[janddbone]

Just wondering, I assume the standard shifts are supposed to be two a day five days a week?

What if going at Ford for comparison, what is normal? What extra are they doing?

[bobthebilda]

Originally Posted by mr_br_johnstone

Just wondering, I assume the standard shifts are supposed to be two a day five days a week?

What if going at Ford for comparison, what is normal? What extra are they doing?

The standard was 2 shifts a day for 5 days a week. Then in Oct 2008 (when GFC hit), they were basically just working every second week (but still two shifts). Then in early may 2009, they stopped afternoon shift, and had day shift workers working on week, and then afternoon shift workers working the day shift the nex week. And that has basically been going on until now. So come July 2010, day shift workers will be working 4 days a week, and then afternoon shift 4 days the next week, most will be working 4 days a fortnight. Its probably what you would class as a part time job.

[BENT_8]

Originally Posted by bobthebilda

Then in early may 2009, they stopped afternoon shift, and had day shift workers working on week, and then afternoon shift workers working the day shift the nex week. And that has basically been going on until now. So come July 2010, day shift workers will be working 4 days a week, and then afternoon shift 4 days the next week, most will be working 4 days a fortnight. Its probably what you would class as a part time job.

Not even close.
Of the current workforce, 85% are back on full time, the other 15% are on part time by choice.
Its been like this for the last 3 months.

As has been said, they are just clearing old stock.

I do however doubt the second shift will go ahead.
They are talking 500 extra workers and building 250-70 on day and 200ish on arvo's but i dont think the demand will be there.

[Fordman1]

Originally Posted by BENT_8

Not even close.
Of the current workforce, 85% are back on full time, the other 15% are on part time by choice.
Its been like this for the last 3 months.

As has been said, they are just clearing old stock.

I do however doubt the second shift will go ahead.
They are talking 500 extra workers and building 250-70 on day and 200ish on arvo's but i dont think the demand will be there.

And there-in lies the problem...

They are clearing old stock (with downdays !!).

Poor planning, over production, no idea once again !! (still).

13 days is 65 % of a months production - you can't do that and come close to making money !! I'm predicting there will be no new employees.

Poor (part time) workers getting shafted by "Government motors" again !!

[jpd80]

So, while Ford has right sized production capacity and employees to current market needs,
Holden is trying to get by with a higher line speed and more employees working less days per week.
Looks like Holden are "trimming" until the market catches their current line speed which
seems a very odd thing to do, it's a gutsy move because things can go pear shaped real quick.