Supply issues hit Holden as Ion announces plant closure

[fpv_gtho]

HOLDEN WOES

Holden was dealt another blow to its local engine manufacturing operations last week when the administrator of the failed ION Automotive - one of Holden's major suppliers - declared that it would close its debt-ridden Wingfield manufacturing plant on July 31.

The Wingfield plant in South Australia was to supply Holden with cylinder heads for its new global V6 Alloytec engine and follows the administrator's scrapping of plans for another ION plant in Altona Victoria that was to build the alloy blocks for the Holden engine.

In a statement, administrators McGrath Nicol and Partners, said they had hoped to find a buyer for the plant but after three months it became clear that it was never going to become a viable operation.

The closure of the plant leaves Holden with little option but to continue sourcing the block and head for the new engine - which is built for global GM use in Port Melbourne and St Catherines, Canada - from overseas.

Both are currently being sourced out of Mexico but Holden boss Denny Mooney says they need to seek an alternative. Any overseas sourcing is an expensive exercise that adds significant cost to the production of a car.

"We already have a block and head supplier but the question is how do we over the long term keep competitive from a cost standpoint so we have got to work through the alternatives," he says.

However, he says any increased cost in building the Commodore, would be unlikely to flow onto consumers as it is the competitive nature of the market that sets the prices they sell at, not what the cars cost to manufacture.

Holden's engine woes come on top of its potential downgraded status within the GM world with GM's product boss recently announcing that the development of a new line of rear-drive passenger cars for the US has been put on hold for an indeterminate period.

Holden last year got the go-ahead to do the major architecture engineering for these cars and all large rear-drive products globally. The first of these new products off what is dubbed the Zeta architecture will be next year's all new VE Commodore but this platform was to underpin at least seven new models for North America. One of those was the Pontiac GTO which is currently based on the Monaro but without that car in the US, it could also mean that Holden's Monaro will not be included in the VE lineup.

Without these in the pipeline, the Commodore architecture becomes again what it currently is - a small volume local car for domestic and some export consumption.

Its interesting what Mooney says about the costs affecting the purchase price. If what he says is correct, then why did Holden increase the price of the Commodore with the introduction of the Alloytec with the VZ? If the price is determined by market competitiveness, then why did an Executive that used to be cheaper than an XT with auto and air, become about as expensive?

[SlickHolden]

When mooney speaks all i can see is between his cheeks the brown stuff

But it is really getting hard for them to get parts local for a lot of things of late,
Soon they will have no choice till they find some local but to go overseas for parts.
Did holden run over any china men this year

[fpv_gtho]

Well GM seems to be destroying everything it touches lately......Zeta, Fiat, Ion just to name a few things. You have to wonder how the Mexicans are taking it though, its more business to them, but ive heard that with now demand from both HFV6 plants, theyre not keeping up.

[SlickHolden]

Maybe GM should let the Aussie's run it lol.
If holden starts to drop and bad things come around them as they are GM might loose the plot all together and there could be more to roll out. Dawoo gone isnt saab in trouble pontiac or buick might go is there anything else?