Holden Commodore News

Ian McLeod, the managing director of Coles, is fast becoming a hero to those of us who park our cars correctly. He calls out employees who park lazily -- and he gets results.We now know what happened after Mr McLeod took a "selfish" and "inconsiderate" staff member to task for taking up three whole parking spaces with his Holden Commodore. The driver moved the car and confessed to their parking sins. But then things got complicated. And Mr McLeod had to send another fired-up email."Firstly thank you to the owner of the Commodore who has apologised and moved their vehicle," Mr McLeod wrote to staff, in a message obtained by news.com.au. "However, I am appalled two of the small car spots vacated have now been filled (by the two large cars above). Could the owners of these two vehicles please move their vehicles to the brickworks and explain to me why parking in these bays was appropriate."This lazy park had Mr McLeod angry earlier that morning. The first email spray that morning - it got results.A former Coles worker who wished to be anonymous said: "It's the worst place to park, so good on him." Mr McLeod gave up his executive car space so other workers could park, the one-time employee said, and he regularly parks his vehicle outside to "keep it fair for everyone".Coles spokesman Jon Church said Coles called out bad behaviour. "Ian is not looking to become Melbourne's next parking commissioner but he and the whole Coles team has done a lot to change the culture here during the last five years and when we see things happening that don't fit with our values we call it out," Mr Church said.He added the approach was supported by staff because it creates a focused and enjoyable atmosphere. Another former staffer told us Mr McLeod "sets a good example for everyone". Now everyone just needs to follow it.Ian McLeod loves fresh produce and proper parking. 

Holden says it’s as True Blue as football, meat pies and kangaroos -- but a secret document has revealed the cars it plans to build with more than $275 million taxpayer dollars will be less Australian than a Toyota Camry.The local content of the latest Holden Commodore has already dropped to 50 per cent, while less than one-third of the Cruze small car is made from Australian-sourced components, even though Holden has received $1.8 billion in government assistance over the past 12 years.By comparison, the local content of the Toyota Camry and Ford Falcon sedans are 70 per cent, according to figures supplied by the car-makers.Holden’s confidential plan to increase the foreign parts in its cars will likely come as a kick in the guts to local automotive parts suppliers who today (Monday December 2) will hold a rally at Adelaide’s Stamford Hotel before lodging their submission to the Productivity Commission.“The Productivity Commission must understand that this isn’t just about economics, it’s about families and communities,” said John Camillo, the SA secretary of the Australian Manufacturing Workers Union.The Federal Coalition Government has postponed any new taxpayer assistance deals with car makers and automotive component suppliers until after the Productivity Commission delivers an interim report on the industry by December 20 and a final report on March 31.Critically, this is after a global General Motors deadline to allocate investment in future models and it is feared the fate of Holden's factory may already be decided.Holden yesterday declined to comment on its future model plans. But the SA Government “Cabinet In Confidence” document -- partly funded by and compiled with co-operation from Holden -- says there will be a “significant reduction” in locally-made components for the two cars General Motors plans to build in the future.“The Next Gen plan sees two vehicle ranges with the majority of components for each being imported,” says the report prepared by University of Adelaide Professor Goran Roos. "Accordingly the Next Gen plan would see a significant reduction in the Australian-based suppliers to GM Holden.”The report contradicts Holden’s public claim that if its factory and the jobs of its 1760 production line workers are saved, Australian component manufacturers will also benefit.Holden boss Mike Devereux says the “ripple effect” of a shutdown would be felt across the parts supply industry -- and up to 7000 jobs in South Australia and up to 18,000 in Victoria would be lost.But, in fact, if General Motors receives the funding boost it needs to continue production in Australia, some local parts suppliers are likely to lose their contracts with Holden and may themselves face a shutdown.Critically, even if local parts suppliers can match or undercut the price of foreign rivals, they are unlikely to be awarded the business because of General Motors’ global parts supply contracts.“Even if an Australian-based supplier could offer a cheaper alternative for (Holden) locally it would not be adopted as it could interfere with the broader global GM supplier relations,” the report says.Holden’s decision to increase the foreign content of its “Next Generation” cars now risks bringing Toyota and the rest of the Australian automotive manufacturing industry down with it.If Holden weakens the parts supply base, the remaining component manufacturers may not have the economies of scale to help Toyota find the $400 million in annual savings it needs to survive.Toyota Australia says it must slash $3800 -- or about 15 per cent of the production cost -- from each car it builds if it is to retain the Middle East export deal that is critical to keeping its Altona factory running.Only 35,000 Camry and Aurion V6 sedans are sold locally each year; about 70,000 Camrys are exported. Toyota Australia says it must build a minimum of 80,000 cars a year to remain viable.In Tokyo last week, the executive vice president and member of the board of Toyota, Nobuyori Kodaira, said local parts suppliers were key to the survival of Toyota’s Australian operations.“In Australia currently we are having a difficult situation,” said Mr Kodaira. “Because this is a business we need to have economic viability.“In order to continue the manufacturing there, we are cooperating with our suppliers on activities such as rationalisation and also cost reduction. We definitely think those activities are necessary.”A Toyota insider told News Corp Australia: “If Holden goes, we’ll be right behind them. It won’t be announced straight away … but we’ll be gone too.”Toyota Australia executives are still fighting hard to save the Altona car assembly line and engine plant, by trying to find new ways to cut production costs.In Tokyo last week a Toyota Australia executive said a decision about Altona would come from Japan by mid-2014. But representatives for the company have since told News Corp Australia a deadline has not been set, and it may be in the second half of 2014.In the meantime about 2000 of Toyota’s 2500 factory workers at Altona have been asked to vote on an amendment to their workplace agreement that cuts bonuses but improves shift flexibility.Unlike Holden workers -- who in September voted for a three-year wage freeze if production is secured from 2016 to 2022 -- Toyota factory workers will get to keep two longstanding pay rises due next year: a 3.25 per cent increase in April and 2 per cent in September.The Toyota workers must cast their vote by Friday the 13th of December. If Toyota were to close its Altona facility, it would likely happen in 2018, at the end of the next Camry model cycle.In August this year, Toyota Australia announced it had received $30 million in government funding to go towards an update for the Camry to be built at Altona from 2015 to 2018. There is no suggestion this deal is under threat.As reported by Carsguide last month the SA Government briefing paper forecast the possibility of a Holden shutdown in 2016, the same year as Ford. The secret document also said Holden’s factory shutdown could be delayed until 2018 -- even if it did not proceed with the two new “Next Generation” models -- by extending production of the current Commodore and Cruze."Our key working assumption is that manufacturing/assembly of mass-market vehicle platforms at GMH is not sustainable,” the report said.“It is therefore likely that vehicle assembly will eventually cease: 2016 being the earliest likely date.”The report also found Holden exaggerated its sales forecasts for the two new cars, which means State and Federal Governments would again be threatened with a shutdown at a later date.“The sales assumptions of the Next Gen case err towards the optimistic,” the report says. “(Holden assumes) all unit sales of the current Commodore sedans migrate to the new proposed front-wheel-drive large vehicle, and that all current unit sales of the Commodore wagon migrate to the Next Gen small vehicle wagon.“The case assumes an overall increase in sales of small vehicles … in the most cost competitive segment of the market. We believe that these assumptions have greater downside risk than upside risk,” the report found.Carsguide understands that under the “Next Generation” plan Holden expects to build just 65,000 cars per year at Elizabeth, down from approximately 84,000 this year and a peak of 165,000 in 2004.Holden has received more than $1.8 billion in taxpayer support over the past 12 years, and in March 2012 had signed a deal with the former Federal Labor Government for a further $275 million to build two new models.But since Ford announced in May this year that it will shut its Australian factories in 2016, Holden has asked for a funding increase because it says economic conditions have “changed dramatically”.This reporter is on Twitter: @JoshuaDowling 

A member of the 2013 Australia's Best Cars judging panel says motorists are spoilt for choice right now. Royal Automobile Club of Tasmania general manager of roadside and technical Darren Moody -- who sits on the panel with judges from motorist clubs around Australia -- says new car buyers have access to record low interest rates and are still getting great value for money, despite a recent dip in the value of the Australian dollar.He and the 11 other judges from around the country had been trying to make life even easier for buyers, testing 50 vehicles in 15 categories for the 2013 best car awards.The awards, run by the Australian Automobile Association, involved all the state auto clubs. In October Mr Moody and the other judges spent six days at the Australian Automobile Research Centre at Anglesea in Victoria testing all the vehicles.The judges' choice this year was the Mazda6 Touring, winner of the category for best medium car under $50,000. "It brings premium features to the category," Mr Moody said. There was no winner in the people mover category this year. AAA chief executive Andrew McKellar said it was the first time in the 13 years of the program that an award has been withheld."It's unfortunate that not one vehicle in that class meets the expectations of an Australia's Best Car," he said.Australia's Best Cars 2013Judges' choice: Mazda6 TouringBest light car: Renault Clio Expression TCe 120Best small car under $35,000: Hyundai i30 ActiveBest small car over $35,000: Audi A3 Sportback TFSI CoDBest medium car under $50,000: Mazda6 TouringBest medium car over $50,000: BMW 320iBest large car under $60,000: Holden Commodore VF SV6Best large car over $60,000: Lexus GS350 F SportBest people mover: Award withheldBest sports car under $50,000: Volkswagen Golf GTIBest sports car $50,000-$100,000: BMW M135iBest SUV under $45,000: Subaru Forester 2.5iBest SUV $45,000-$65,000: Hyundai Santa Fe Highlander CRDiBest Luxury SUV over $65,000: Volkswagen Touareg V6 TDIBest all-terrain 4WD under $100,000: Land Rover Discovery 4 TDV6Best 4x4 Dual Cab Ute: Ford Ranger XLRead the full story here. 

Volvo is getting ready to join the V8 Supercars next year – fielding two S60 sedans under the banner of Volvo Polestar Racing in partnership with Garry Rogers Motorsport (GRM).However the Swedish brand is already thinking about increasing the number of cars the following year. In 2014, Volvo’s racers -- Scott McLaughlin and a second one yet to be named – will pilot their two cars Holden’s 13 Commodores, Ford's six Falcons, four Nissan Altimas and three Mercedes-Benz E63 AMGS.But Volvo's global motorsport boss Derek Crabb said the prospect of having more S60s appealed to him. "Clearly, the more cars on the grid, the more exposure Volvo gets and the more chances Volvo has of getting a win, which we need," Crabb said. "But then you have to put the cost back into it. So yeah, we dream about year two and year three but let's get through year one first."Polestar Racing owner Christian Dahl agreed. "I think if you are going to fight for the championship in the long term, you need more cars out there because there are a lot of Holdens and only two Volvos," Dahl said. "But that is a question for the future." But for the moment Volvo is dealing with GRM’s sponsor since 2010, Fujitsu, announcing yesterday it would not renew its association with the team next year due to a shift in their "commercial focus".However Garry Rogers is optimistic about finding a new sponsor. "Next year's program has generated a lot of interest and we will now be following up all avenues so as to secure suitable commercial business partners to join the GRM team," he said.

Only 36 per cent of young Australians would buy an Australian-made car, eroding a belief that the nation supports a local car industry. In a national survey by Roy Morgan Research, only about half of the "battlers" - the term for low income families or couples - and older couples and retirees would consider an Australian-made car above an imported car.Roy Morgan director Jordan Pakes says "battlers" and "golden years" - retirees or older couples - surveyed above the average as considering a locally-made car with 55.4 per cent and 49.7 per cent respectively. However, he says these groups of buyers were also less likely to be in the market for a new car.Mr Pakes says "it seems the writing’s on the wall" for local car makers. "Ford’s decision earlier this year to cease local production from 2016 spelled for many the beginning of the end for the Australian auto manufacturing industry," he says. "Now with talk of Holden and Toyota following suite, it seems like the writing’s on the wall."He says that "battlers" and "golden years" groups are less likely to be in the market for a new car in the next four years. "Combined, they make up only about a quarter of the 2.3 million intenders in the new car market," he says."Nevertheless, battlers and golden years comprise a third of Holden’s market and almost a quarter of Toyota’s. Both makes need to consider how shutting down local factories will affect sales among these markets that value Australian-made cars."Market researcher Barry Urquhart of Marketing Focus says Roy Morgan’s survey showing an average of 45.3 per cent of Australia’s 15.6 million motorists preferring a local car could be very optimistic. "When asked a very general question such as 'would you buy Australian?' there is a 78 per cent response in the affirmative," he says. "But come to the point of buying, that percentage plunges to 45 per cent. That’s because there’s no qualifier stating 'if all things are equal' - and they’re not equal."Mr Urquhart agrees with Roy Morgan that the writing is on the wall. "In 1990, Holden and Ford were selling about 150,000 cars a year. Now if they’re selling about 35,000 they are delighted. Local manufacturing is a marginal proposition," he says. "We have to remember that Australia is a very different place with very different values that what we had in the 1990s."Buyers want to purchase brands with aspirational values. Mostly, they want European brands and especially those from Germany and France. It doesn’t really matter if that BMW is made in South Africa or the Volkswagen in Mexico. They want a German car."Mr Urquhart says cars from Holden and Ford are no longer aspirational. "Holdens are often associated with cashed-up bogans. Is that the image you want to present? Look at where we work and you’ll find 78 per cent of employment in the service industries - banking, health, hospitality and so on. What type of cars do these people want to own?"Though the mining industry is seen as a big employer, it attracts less than 4 per cent of Australia’s workforce. If this is the bulk of Holden buyers, then it’s a very, very small sample."Mr Urquhart adds that another reason for a decline in local car sales was that the products weren’t new. "European car makers change the look of their cars - sometimes dramatically - about every three years. Look at Holden and Ford’s local product - they are old cars with the same body shape as years ago. People crave new. They don’t want an old car and they don’t keep their car for long."The writer is on Twitter: @cg_dowling 

Holden factory workers who voted for a three-year wage freeze to try to save the company have been snubbed by the boss of General Motors' international operations, indicating Holden's manufacturing fu

One swallow doesn't make a summer, as one bumper month for Commodore does not mean it's basking in sales sunshine. With 3315 buyers last month, the Commodore recorded its best month since September 2011 and came third in the sales table. It's a surprisingly good result against a headwind of a 3.1 per cent decline in the market overall, as the expected rebound from a change of government failed to show. At least so far. The Federal Chamber of Automotive Industries believes changes to the fringe-benefits tax announced by Labor in July are still confusing potential buyers, despite being overturned by the Coalition. That suggests the market can recover from its stall. The problem is, Commodore will need an extended heatwave to reverse the chill, much less give Holden a chance of retaining a viable manufacturing operation. Since 2002, Commodore demand has slid by two-thirds. The decision to add the Cruze small car to the Adelaide plant was an admission that two models were needed to generate the volume that used to come from one. The assumption is this will mean producing 65,000 cars a year after 2016, all for domestic consumption. This is a climbdown from Holden's previous position that annual output of 90,000-100,000 was needed to keep Adelaide viable. Neither target is a money-making proposition and with increasing fragmentation of the market, a more realistic target would be two cars in the top five. Even the low goal is wildly optimistic. Cruze has failed to excite the market, peaking in its debut year as a local then tumbling 14 per cent last year and another 16 per cent this year. Commodore sales are down 14 per cent this year and last month's result needs some context -- as recently as 2011, it would have been one of the worst months, not the best. Between them, they will be lucky to achieve 60,000 this year. Exports -- let's be generous and assume 15,000 -- will keep this year's production total respectable. Now subtract exports and swap the Commodore with the Malibu, its scheduled replacement in 2016, and a car that has been ignored by buyers since its introduction as an import in June. If Commodore and Cruze can't cut it, then Malibu and Cruze are destined for the deep-freeze.  

The Holden V8 is set to disappear from showrooms for the first time since 1968, and the new Commodore — if it gets built — will be a front-wheel-drive car with about as much pizzazz as a Toyota Camry. The confidential SA Government report into Holden’s manufacturing future — leaked to the Adelaide Advertiser — makes grim reading for Holden fans. It says the company is not likely to have a rear-wheel-drive car — and therefore a V8 — beyond 2016, or 2018 at a stretch. "The true impact of not retaining this offering is not clear. However GMH is likely to experience some sales erosion sand migration to other brands," said the report prepared by University of Adelaide Professor Goran Roos for the SA Government. When the Falcon and its performance models bow out in 2016, Ford will import the Mustang coupe from the US to appeal to the enthusiast market. "The next gen model mix also excludes the ute variant," the report said, confirming a News Corp Australia exclusive from a fortnight ago. If Holden keeps making cars in Australia from 2016 to 2022 it will be the first time since the first ever Holden — the 1948 48-215 "FX" — that its flagship model will be front-wheel-drive. The front-wheel-drive car that Holden says it will call the "Commodore" will be made with mostly imported parts, the report says, putting further pressure on local parts suppliers. That in turn is expected to force Toyota Australia’s hand with a factory closure in 2017, a year after Holden and when the Camry model cycle is due to come to an end. This reporter is on Twitter: @JoshuaDowling  

Holden workers will get a 3 per cent pay rise next week and a scheduled $1000 bonus next month because the three-year wage-freeze deal they signed in September only kicks in if Holden signs a new agreement with the Federal Government to build two new cars from 2016 to 2022.The delay in that decision -- now not likely until late April or early May while the Federal Government waits for a Productivity Commission report -- means workers will remain on their full benefits.Despite the uncertainty, Holden will go ahead with a critical upgrade to its factory in Elizabeth to prepare for the next generation Commodore due in 2016 -- even though it is yet to win further funding from the Federal Government. The revelation contradicts Federal Government insiders who incorrectly claimed last week that General Motors executives in Detroit had already decided to shut the Holden factory.News Corp Australia has been told by factory workers that Holden will make the planned changes to the body shop during the scheduled summer shutdown in December and January, to pave the way for tooling for the new large sedan which, they say, is front-wheel-drive. If the new large car -- which Holden has said it will call a Commodore -- goes ahead, it will be the first time in Holden’s history that its top-selling model is not a rear-wheel-drive car.News Corp Australia has been told that Holden is spending $250,000 to make the upgrades to the body shop -- effectively where a car starts its life on the production line -- because it would be too costly to do at a later date. The factory preparations should not, however, be viewed as a guarantee that Holden’s manufacturing future is safe, industry observers have warned. The car maker is still waiting on a decision about future funding from the Federal Cabinet in late April or early May. An industry insider told News Corp Australia: “The deal may not be done (to secure Holden’s manufacturing future) but this is a prudent move. In the scheme of things, this is not a large sum of money to spend when to delay it would cost much more because it involves shutting the factory for an extended period.”Meanwhile Federal Industry Minister Ian Macfarlane has returned to Australia following his visit to Toyota executives in Japan last week. His office told News Corp Australia there is still no change to the Federal Government’s plans to wait for the final Productivity Commission review in March, and follow its recommendations. An interim Productivity Commission report due on December 20 is expected to give General Motors and Holden an indication of the Federal Government’s funding intentions.Earlier today the Federal Chamber of Automotive Industries released a report which claimed the loss of the car manufacturing industry would wipe $21.5 billion of economic activity from the Australian economy. The report also claimed that it would take the economies of Adelaide and Melbourne until at least 2025 to recover from the associated job losses. However the report was done by a firm which found contradictory results in April this year, and recommended industry subsidies be cut.The new report prepared by the Allen Consulting Group, using economic analysis from Monash University, found that the $500 million the car industry received each year generated a claimed $21.5 billion in economic activity. But a report in April this year prepared by ACIL Allen -- the company formed when ACIL Tasman merged with the Allen Consulting Group -- recommended taxpayer support be cut from struggling industries."Subsidies to particular industries are a tax on the remainder of the economy," said the ACIL Allen report prepared for the Property Council Of Australia. "They have become more significant in the last decade, totally nearly $9 billion annually. The more successful industries, those that do not need subsidies, prop up the less successful ones."COMMENTHolden’s manufacturing future remains gravely uncertain. But going ahead with crucial factory preparations for the new generation 2016 sedan shows there is still a slither of hope. Contrary to last week’s allegations from anonymous sources in the Federal Government, General Motors categorically has not “already decided” to shut down Holden’s factory operations.On the contrary Holden is spending $250,000 on a bet that a deal will be done with the Federal Government after March. That sounds like a lot of money but it’s small change in what would amount to a $1 billion investment on the two new generation cars it would build from 2016 to 2022.Sadly, though, the wait is not over for the 1700 factory workers at Elizabeth. Most likely they will go on their Christmas break during the scheduled summer shutdown not knowing about their company’s long term manufacturing future.Then they will have to endure a three-month wait for the outcome of the Productivity Commission review -- due on March 31, coincidentally after the SA election. And then they will need to wait for Cabinet to decide if it wants a car manufacturing industry in Australia, or say goodbye to it forever.joshua.dowling@news.com.auThis reporter is on Twitter: @JoshuaDowling

As Holden's manufacturing future remains under a cloud the Commodore has had its best monthly sales performance in two years.  Preliminary figures show Holden delivered more than 3300 new Commodores in October, an increase of 35 per cent compared with the same month last year. "It just goes to show that there are a lot of Australians out there who want an Australian-made car," said Holden's sales and marketing executive director, Philip Brook. "It's a great result considering it is a soft market." Industry analysts believe new-car sales dipped by 2 per cent for the second month in a row, but official figures are not released until next week. But it was a somewhat shallow victory for what was Australia's favourite car for 15 years in a row, ranking third behind two Japanese imports, the Toyota Corolla and Mazda3 small cars. "The market has changed but the results of the VF (Commodore) prove we're building cars that people want," said Mr Brook. Having clocked up its fifth monthly win this year and the second in a row, the Toyota Corolla is on track to become Australia’s top-selling car for the first time ever. In other upsets, South Korean car maker Hyundai pushed Mazda off the podium for third place for the third time this year. And Hyundai's sister brand Kia pushed Honda outside the top 10 for the second month in a row. In a stark example of the impact of the imported competition, the Volkswagen Golf outsold the locally made Holden Cruze small car for the second month in a row. Top 10 cars October 2013 Toyota Corolla 3860 Mazda3 3610 Holden Commodore 3310 Toyota HiLux 3170 Hyundai i30 2380 Toyota Camry 2250 Ford Ranger 2025 Volkswagen Golf 1965 Holden Cruze 1925 Nissan Navara 1920 Top 10 brands October 2013 Toyota 18,130 -- down 2 per cent Holden 10,530 -- up 3 per cent Hyundai 8130 -- up 7 per cent Mazda 7965 -- up 3 per cent Ford 7485 -- down 10 per cent Nissan 5295 -- down 20 per cent Mitsubishi 5065 -- down 5 per cent Volkswagen 4875 -- down 12 per cent Subaru 2860 -- down 10 per cent Kia 2530 -- down 15 per cent Preliminary results. Official VFACTS data due Monday 4 November, 2013. This reporter is on Twitter: @JoshuaDowling