Holden given secret $200m

prydey · 08-08-2009, 01:59 AM

http://www.news.com.au/business/stor...71-462,00.html

i realise its not a fair world, but when you have multiple car manufacturing operations in the country, shouldn't the govt support all of them.

FERG_51 · 08-08-2009, 02:09 AM

????????????????? Whats going on here, I dont get it??????????????????

zetec · 08-08-2009, 02:12 AM

wtf is going on there?!!

FordACE · 08-08-2009, 02:20 AM

If it helps save jobs I don't see why it should be an issue? Hopefully these companies that are struggling put more effort in to being leaner and more efficient.

blownba · 08-08-2009, 02:27 AM

This story has made me fell ill. Literally!!!

How could they?

And they already received 100 and something million for their 'green car' ??

This is just nuts. Totally insane. Another awe inspiring choice from our wonderful government.

Sprint XR8 · 08-08-2009, 02:49 AM

Media Release

EFIC support for General Motors Holden's export programs
7 August 2009

Export Finance and Insurance Corporation (EFIC) is to support the export programs of General Motors Holden (GMH) with a working capital line of credit of up to $200 million.

The facility has been put in place to provide support for GMH exports of vehicles, parts and engineering services to Europe, the Middle East, Africa and Asia as the Australian manufacturer establishes stronger market links under the newly created General Motors Company.

The Government has approved the request from GMH under the EFIC Act. The secured line of credit of up to $200 million has been agreed but not drawn and is subject to commercial terms and conditions.

“Holden is an iconic Australian company and EFIC is delighted to support GMH’s ongoing export activities” said EFIC Managing Director & CEO, Angus Armour.
http://www.efic.gov.au/templates/efi...D=476&riID=162

Iggypoppin' · 08-08-2009, 02:56 AM

This is a good thing as far as I see it. Jobs kept in my home state and an Aussie brand (albeit American owned) being supported in the tough times. Fair go I think. However I do not know all facts so really am not one to judge the situation

Ghiadude · 08-08-2009, 03:33 AM

Im glad that this will keep jobs in australia - Im sad that ford has been the REAL inovators in the australian car industry have no sales to show for it The I6 is THE BEST ENGINE ever designed in an australian car and what do they get ef all for their trouble...sheeesh

mik · 08-08-2009, 03:37 AM

will another 200 mil be enough to keep Holden running? after this statement from the 1st post i would be worried.

measure of the struggle facing Holden was given by the company's auditors, Deloitte, just a few weeks ago. It warned Holden was subject to "material uncertainty regarding continuation as a going concern".

Iggypoppin' · 08-08-2009, 04:06 AM

Holden hasn't made a profit in years, correct?

vztrt · 08-08-2009, 04:09 AM

Quote:

Originally Posted by FordACE

If it helps save jobs I don't see why it should be an issue? Hopefully these companies that are struggling put more effort in to being leaner and more efficient.

I have no problem with government money saving jobs, but after Holden just spent big money on the T8 deal, you would think where that money could go.

Quote:

Originally Posted by NJXR6

Holden hasn't made a profit in years, correct?

2004 was their last profit, Fords last profit was 2006.

Mark s · 08-08-2009, 05:56 AM

While I have no issues at all with this as it is going to help keep Australian jobs going. One has to wonder how much of this 200 million was behind keeping Holden a part of the new GM?

Mr Ruess and other Holden management have been telling us Holden staying in the new GM was because of what it offered. My guess is the 200 odd million on top of everything else was the reasons why.

How long can the Australian Govt continue to put money into Holden and keep it a part of NEW GM? Before Holden is sold off to the highest bidder, because I think the future of GM production is in Korea and China and not down under.

I would also be interested in Mr Govers spin on all of this?

Maybe they could ship him off to the Ashes series and he could spin Australia to another Ashes victory, just like it seems he is doing with Holden.

Cheers
Mark

75Cortina · 08-08-2009, 07:03 AM

I would like to say that i'm suprised,
But after all the media bashing that Ford cop and the Australian Government pumping money into these scheme's what else would you expect.
I still can't believe how many people think that the Bommodore is 100% Australian and will just buy that car just because it is a so called 'Aussie car'
Ford has one of the best falcons in years and is still keeping jobs in Australia what hand out does it get?
I'm all for keeping Jobs here, but i'm also sick and tired of Holden getting hand outs for bringing out outdated Tech and getting all the praise from the government for doing so.

rag top · 08-08-2009, 08:30 AM

If it is a line of credit, surely it would have to be paid back? Don't see an issue if that is the case. Maybe that is why the GM brand colour is red!

rodderz · 08-08-2009, 08:36 AM

I don't have a problem with it, if it helps the company stay afloat and helps workers keep jobs. But it should be across the board. Did Mitsu receive such help? Did the money affect the swapping of team Vodafone across from Ford?

a_misfit · 08-08-2009, 08:54 AM

I too thought it was dodgy at first read as well, especially considering the T8 deal.

But when i read the article on the EFIC, it says "support the export programs of General Motors Holden (GMH)", so I have no problem with it. Basically as i read it CBA won't loan money to GMH, so the Aus Gov is providing that credit in tough times.

And as it has been said above it is only a line of credit. So the Australian tax payer should get their money back as long as GMH doesn't go under. And in that case we would be a primary creditor, so Aust Gov could end up in the same boat as the US Gov and owning a car company.

My only hope is that the funds are audited, so that it is proved that any credit provided is used only on items that directly contribute to enhancing export opportunities. Not propping up other areas of the business. We have seen $179m pumped in for a green car, without too much of an output.

a_misfit · 08-08-2009, 08:55 AM

Quote:

Originally Posted by rodderz

I don't have a problem with it, if it helps the company stay afloat and helps workers keep jobs. But it should be across the board. Did Mitsu receive such help? Did the money affect the swapping of team Vodafone across from Ford?

Mitsu wasn't exporting though were they?

KW XRT · 08-08-2009, 09:25 AM

I don't have a problem saving jobs either but I feel the taxpayer funded line of credit has eased the financial pressures on all holden departments this intern has allowed them to release funds to back both 888 HRT and most other teams I mean where talking 2 to 1 sponsorship.As a tax payer this annoys the heck out of me as it shows to mistruths 1 ford is in trouble and two holden have money to burn.

Wally · 08-08-2009, 09:34 AM

Good on them for "loaning" the money to Holden for exports. This is not uncommon across a wide range of Ausralian export industries. The Govt hasn't been sitting on it's hands playing favourites, it's been talking up Toyota too and I'm sure Ford have been getting grants in one form or another.

There used to be a rough formula State Premiers used to flogg their credentials :- for every dollar earned on an export, ten would be generated as it passed through the economy into the reserve bank.

Maybe Ford will be spurred on to do it's bit for national income and export too.

whales · 08-08-2009, 09:34 AM

I'm sure Ford are getting hand out aswell. Good luck to GMH as long as it keeps people working I can't see anything wrong with it

**Fordman1** · 08-08-2009, 09:54 AM

Mmmmmm....

Looks like this was the mechanism to keep Holden out of "Bad GM".

Holden get this (because the banks think they are too much of a risk) and $179 Million for Cruze.

Ford get $23 Million if they do Focus.....

I can see why Ford dumped their Focus plans and why Holden will still have a go at their small car (we'll see I guess).

sgt_doofey · 08-08-2009, 10:03 AM

Quote:

Originally Posted by a_misfit

Mitsu wasn't exporting though were they?

Yeah, to the middle east I think. They sent the 380 over there.

drivingon · 08-08-2009, 10:04 AM

Quote:

Originally Posted by NJXR6

Holden hasn't made a profit in years, correct?

i am led to believe that holden is a profitable company but however gm (USA) keep siphoning off the profits to keep themselves afloat!
for this reason the next commodore will have very little difference from the current ve series as they have no cash for development!

imugli · 08-08-2009, 10:05 AM

This was mentioned as an "anonymous cash injection providing Holden maintain manufacturing in Oz" in the GM bankruptcy thread. It's a bribe to GM...

Personally, I have no problem with the government investing in 'Green Cars' but if our auto's aren't good enough to be exported on their own merits (including costs) then I don't think the government should be propping these up.

InfernoSR · 08-08-2009, 10:09 AM

Now i know how Holden could afford to buy 888 racing...

SpoolMan · 08-08-2009, 10:23 AM

Quote:

Originally Posted by rodderz

Did the money affect the swapping of team Vodafone across from Ford?

Thank-you for paying your taxes, now team vodafone will carry a new sticker on there car APC, Australian Public Credit.
Hard up for a dollar lets go spend it on Motorsport..
I have no problem spending limited money on saving Australian jobs, but spending millions on chasing new teams when your balance sheet is red don't make sense and it don't look good either, most company's would scale back but Holden buys the team that spanked them for the last 3 years with a Tax payer Government funded line of credit.

blownba · 08-08-2009, 10:42 AM

I didn't even think of that!!
That makes me even angrier.
Thanks spoolie!!

4Vman · 08-08-2009, 10:45 AM

Quote:

Originally Posted by SpoolMan

Thank-you for paying your taxes, now team vodafone will carry a new sticker on there car APC, Australian Public Credit.
Hard up for a dollar lets go spend it on Motorsport..
I have no problem spending limited money on saving Australian jobs, but spending millions on chasing new teams when your balance sheet is red don't make sense and it don't look good either, most company's would scale back but Holden buys the team that spanked them for the last 3 years with a Tax payer Government funded line of credit.

Agree totally.... motorsport sponsorship is a luxury, these people need to be held accountable.

**Luke Plaizier** · 08-08-2009, 10:47 AM

With $200million to spend, why did Holden chose to develop a 3-Litre V6, when places like Thailand are putting a 50% excise on vehicles with engine capacity of 3 Litres or greater?

That's a new export opportunity wasted....

Lukeyson

Rastus · 08-08-2009, 11:07 AM

Quote:

Originally Posted by Luke Plaizier

With $200million to spend, why did Holden chose to develop a 3-Litre V6, when places like Thailand are putting a 50% excise on vehicles with engine capacity of 3 Litres or greater?

That's a new export opportunity wasted....

Lukeyson

I was thinking that as well when reading Mellor's "Thai the knot" article the other day.
Holden's 3.0 will still be taxed to buggery, while Ford might have a chance of putting some 4T Falc's & 2.7TD Terris on those ships for the return trip.
It's been all one way traffic so far in this free trade agreement!