Wheels in motion for car industry demise

[Falcon500]

Originally Posted by mmm_aapls

Holden sourced most of the products we made overseas at a cheaper rate, and cancelled contracts here. Things that we had devolved from scratch, and told would be put into cars, got scrapped and sourced globally.

Toyota is a bit different, they wanted to expand their supplier base and so gave some of our business to another Japanese based company.

In my opinion, automotive suppliers are in alot more trouble than the EOM's. I mean, all manufactures are going global, which opens the doors for cheaper cars and development, but it means that suppliers in Aus have to bite the bullet and start sourcing their own components from the global market.

But this advantage would only be apprent if the cars where in fact getting cheaper! Now given that fact I would be happy knowing my "domestic" product I was buying at least had a proper claim to being at least some what domestic.

As i said the goverment should be offering proper concessions to the car manufactuors for haveing high local content but unfornuatly the goverment is only worrying about short term money makeing scemes ie selling the snowy hydro sceme bad idea especially when that money drys up and the private company is not giveing us a good service (its happening with the private telstra now it will happen with anything else that sold to forign intrest) like shit give us something for the future and rather then makeing claims about creating more jobs how about actually supplying jobs!

Also alot of products that have been built here previously and then resourced have usually sufferd badly a prime example holden v8 water pumps they have gone over seas and they actually redisigned ghe blades in the pump which reduce flow rate and a just crap compared to the old one.

I think the goverment should worry about things inside our own shores. You have to make shure your own back yard is in order before worrying about everyone else. I stand by what i said they should be giveing them incentives to build locally rather then going overseas.

[SlickHolden]

Originally Posted by mmm_aapls

I work for a first tier automotive supplier and I can tell you that the from where I sit, the automotive industry is in trouble. We build components for Holden, Toyota, Mitsubishi and a little bit of Ford. Over the last 3 - 6 months, we have lost a lot of business, especially from Holden and Toyota.

Holden sourced most of the products we made overseas at a cheaper rate, and cancelled contracts here. Things that we had devolved from scratch, and told would be put into cars, got scrapped and sourced globally.

Toyota is a bit different, they wanted to expand their supplier base and so gave some of our business to another Japanese based company.

In my opinion, automotive suppliers are in alot more trouble than the EOM's. I mean, all manufactures are going global, which opens the doors for cheaper cars and development, but it means that suppliers in Aus have to bite the bullet and start sourcing their own components from the global market.

Thats right they need to get down and dirty to compete now. If it takes them to get supplies from overseas to be able to match deals that the other have taken overseas then why not just to keep there doors open.

But the cheap cars are already here and that is what hurts the guys that build them here, They can't compete with the cheaper imports.

[fpv_gtho]

I'll be interested to see how Ford reacts to everyone else getting their stuff from overseas. The government gave them that money as an incentive to consider local suppliers and give them a reasonable chance, and theres already reports that in order to be more profitable theyve chosen to be more careful on development spendings rather than chase more value for their dollar.

Unfortunately though if the other 3 are bailing ship. by 2008 Ford might have no choice to follow suit if they dont want to be caught in a sinking ship.

[Falcon500]

Ford is still in the strongest position they probly can recycle rhd models and make some rhd models out of lhd cars. mitsus up shit creek and holden will probly have to do similar as ford if they leave local manufacturing (all providing GM hasnt sold them to china by them)

[SlickHolden]

I think Ford can get away with 60-65% local content as long as it's the ones in strong positions to take on there demands.

[fpv_gtho]

60-65% is still about a 20% drop in content for them though. Even though it'll still be over 60%, 20% is a massive drop

[SlickHolden]

Better then going 50/50. But i think 65% will be the mark.
Now i think i understand why the Gov got in with Ford and not the rest, Because Holden and Toyota and maybe Mitsub all had there plans in motion some time back, It could be said that the Gov reaction was slow when they should have seen Earlyer then this how the market was starting to go against the Big car which is holden ford bread and butter, Not sure if Mitsub rely on large cars as much but Toyota can get away with anything as there lin-up is full not one is dominate like Commodore Falcon.

[fpv_gtho]

Your probably right, Ford are still in the middle of a major development as opposed to wrapping up the loose strings. They announced it at the same time Ford will be doing the T6 light commercial platform though, so that wouldve had some bearing on the decision as well

[Falcon500]

Mitsu small cars sell well and they are putting more effort to build up the lancers image in this country (Wheel of fortune cars AD campagin etc) they are also giveing limited support to some GT-P cars (which mitsu is doing very well in) and the colt is doing resonbly wee but a big add campagoin will help it as well as a cheap turbo model which in the works.

But that said their major staple is the 380 and it seems they might be getting ready for it to fail but I iamgine it wont be as bad as people may think (except for the jobs lost of course) if they stop local manufacturing.

[SlickHolden]

Originally Posted by fpv_gtho

Your probably right, Ford are still in the middle of a major development as opposed to wrapping up the loose strings. They announced it at the same time Ford will be doing the T6 light commercial platform though, so that wouldve had some bearing on the decision as well

What's the T6 platform i don't seem to remember it is it something to do with building the yanks something?

[fpv_gtho]

Thats the light commercial platform theyre developing that will basically replace the Courier/Ranger around the world