Holden given secret $200m

[GTP 290]

I want to see an option on my tax forms next year to send my tax dollars to ford instead of holden. This is just stupid. If the government want to help out holden why don't they just buy all new fleet vehicles from holden and sell off the current stock cheap to the australian public it's a win win situation from what I can see.

[Dr Smith]

Wonder how Paul Gover forgot to divulge this one....criticise Ford for dropping the Focus and say great for Holden continuing with the Cruze....well if the Feds gave me $160mill, and then a line of credit for $200mill after I again lobbied (scared the Feds by saying our bank won't help us , which in itself is a huge concern), then even I could make such a production viable.

[BigAL_250]

And you can add this story on to that one

Originally Posted by Drivel

Holden escaped 'near-death' experience
Steve Colquhoun, drive.com.au, August 5, 2009

Prominent politicians have revealed just how close one of Australia's three remaining car makers came close to going under as its parent entered bankruptcy.

Holden escaped a "near-death" experience when its parent company, General Motors, went into bankruptcy earlier this year, South Australian Deputy Premier Kevin Foley has told a press conference assembled to announce new fuel-efficient V6 engines for the company’s Commodore range.

As reported by Drive.com.au, Holden has added a 3.0-litre V6 engine to its Commodore and combined it with a six-speed automatic transmission to deliver fuel efficiency improvements of 12 per cent.

Mr Foley, whose constituency includes Holden’s Adelaide manufacturing plant where Commodores are assembled, said a massive injection of funds from the Federal Government’s Green Car Innovation Fund to build the Holden Cruze small car had probably saved the company from going under.

"We are not out of the woods, but we’re a decent way down that path," he said.

He paid tribute to Federal Industry Minister Kim Carr and Holden managing director Mark Reuss as the architects of the company’s continued operation under the restructured umbrella of "new GM".

"If it had not been for the stroke of luck that an Industry Minsiter like Kim Carr came along with the ability to secure half a billion dollars in funding from his Federal colleagues, and the arrival of someone as talented and as driven as [Holden chairman and managing director] Mark Reuss, we wouldn’t be here today," he said.

"It has been a near-death experience for Holden, but it has bounced back in the most aggressive and the most successful manner possible.

"To have had a managing director who has been able to convince [General Motors headquarters in] Detroit in its darkest days to invest in a new vehicle in Australia is a remarkable achievement."

Mr Carr said he was proud that the fund he helped to established had played a pivotal role in saving the iconic Australian car maker.

"Holden could have asked for funding for several programs. (The Cruze program) is the program that Holden chose because that is the highest level of investment they could seek internationally," he said.

"We had to build a business case around a whole new car at a time that the whole company was facing bankruptcy. It made the difference between if General Motors Holden stayed in the new GM or went the way of (GM European affiliate) Opel. We made that difference."

Mr Reuss said he was unsure just how close he came to being the man who presided over the proud company’s downfall.

"You never really know (how close) because as things digress with the parent company and we moved towards that date of the Chapter 11 (bankruptcy proceeding) filing, you don’t know," he said.

But I can tell you, you leave nothing on the table to prevent anything from happening to an entity like this, and that’s what this team did. We left nothing on the table.

"That’s why you’re seeing some of these re-investment projects, you’re seeing the new car (Holden Cruze), you’re going to see export programs come back into that plant, you’re going to see things we worked incredibly hard on come to blossom in the next few years. We never want to be in that place again."

He said he was confident the company could turn a profit on the Cruze, and said the car had sold strongly in its first month on the market.

"We better make a buck out of that four-cylinder car, absolutely. That is the business case we sold, and it’s the business case that’s on track," he said.

[vztrt]

Originally Posted by GTP 290

If the government want to help out holden why don't they just buy all new fleet vehicles from holden and sell off the current stock cheap to the australian public it's a win win situation from what I can see.

They have been, the fed and SA government has been buying Commodores and inflating their figures every month.

[Rock ape]

Well i am sick of Holden and there spin doctor's. $179mil for a green car and $200mil to keep them going. All this money because there an Aussie icon (THERE NOT AUSTRALIAN PEOPLE) I bet that Ford Australia would not get the same treatment. What does Ford need to do to get a level playing field?

[The Snout]

Why are Holden even in V8 Supercars if they have no money ? Seriously.

Holden's motorsport money should be spent first on jobs, not taxpayer dollars. The T8 switch in light of this loan is a real slap in the face to taxpayers. It's as bad as those execs arriving in Washington on private jets asking for money.

[Falc'man]

Uhm, none of you realise who GM really is, do you?

[Fordman1]

Originally Posted by Falc'man

Uhm, none of you realise who GM really is, do you?

Government Motors ?

[4Vman]

Greedy Mofo's?

[Fordman1]

It's all coming together now......

The Rubbish spun by Reuss & Co about GMH being 'an important part of GM', how important it's engineering capability etc was for the "New GM"........

All 'Bollocks' without the Money and the credit line from the Australian Govenment ! It really does seem they were 'gone' without the help they received.

What happens now if they don't make money on the locally produced Cruze ?

Does Kevin give them a LOT more money ?

[The Snout]

Originally Posted by Barraxr8

It's all coming together now......

The Rubbish spun by Reuss & Co about GMH being 'an important part of GM', how important it's engineering capability etc was for the "New GM"........

All 'Bollocks' without the Money and the credit line from the Australian Govenment ! It really does seem they were 'gone' without the help they received.

What happens now if they don't make money on the locally produced Cruze ?

Does Kevin give them a LOT more money ?

I think he does. I really think Holden is seen as too big to fail. 'An Australian Icon'.

It should have been part of bad GM all along.

[R-Design]

The Australian Government should have followed the German Governments example with Opel. By assisting with the sale of Opel the German Government is securing its future going forward. Instead we've got Holden tied to an insolvent parent which will be putting its hands out for more funds year after year. Holden’s is asked to turn a profit with no assistance from its parent, and at the same time provide dividends. All the Australian Government is doing is helping to prop up GM in the USA.

[Bossxr8]

All the while Holden keep telling everyone how great they are doing, and they will be profitable by next month and all that utter crap.

All the while the media have attacked Ford by saying they won't be around much longer, while they quietly go about securing their business, by making tough decisions like cutting back on V8SC funding. Yet Holden go further into debt but make stupid financial decisions like spending millions buying a team they can't beat.

Well F me stupid. : :

[Paxton]

Let's see how long Cruze remains on the agenda now. Me thinks, not long, but a 4 Cylinder Commodore might be rushed to the market with this Ruddy Money.

[vztrt]

Originally Posted by Paxton

Let's see how long Cruze remains on the agenda now. Me thinks, not long, but a 4 Cylinder Commodore might be rushed to the market with this Ruddy Money.

Lol, they'll dust off the starfire motor!!

[Paxton]

Originally Posted by vztrt

Lol, they'll dust off the starfire motor!!

What, cut two cylinders off the Wheezotech?

It might actually sound... Nah, that engine wouldn't sound good with a rock concert playing inside.

In all seriousness, Holden are slowly becoming the new MMAL.

[GTpilot]

I just had to....

[Falc'man]

^^^^ ROFLMAO.

Originally Posted by Barraxr8

Government Motors ?

Originally Posted by 4Vman

Greedy Mofo's?

It was a serious question, and has nothing to do with acronyms. You're getting warmer, though.

[fordboy1981]

Holden have always been dirty and underhanded (just like their drivers) why does this surprise you?

[TUF_302]

This doesn't surprise me, just makes it pretty obvious how Holden were able to afford T8! :

[Mayhem_07]

"The US Government has taken a majority 61 per cent stake in a slimmed down GM as the car maker battles the worst manufacturing slump in decades."

Seems to me like the US gov. now owns 61 per cent of Holden and might be leaning on the Australian gov a little to help it out.

I don't even like Holden so wtf am I paying them my taxes?

Yeah I know the whole voting thing.. didn't vote for the ahole. Looks like a used car salesman.

But then again the last PM used to get around in a LTD. He may have been going senile but at least he had style.

Spoke to a bloke yesterday that said if he had to spend more than a couple hours with Rudd he prob be inclined to tell him to get (insert appropriate word here). So if that doesn't say Holden what does?

[Thankfull]

Originally Posted by blownba

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.

Every bit as bad as threating Ford with NO GOVERNMENT FLEET ORDERS, if you put the GTHO Phase 4 into production and make it available to the Australian public.....

How could they indeed !

[DJR-351]

Theres a fair bit of "Smug" over at LS1.....

[Joe5619]

I dont have a problem with the $200m if it helped saved jobs, etc,etc.. What I do have a HUGE problem with is the fact it wa kepted a secret. When was this money paid & why was the public not told? As a tax payer I have the right to know..

[blownba]

Even my missus is irate about this travesty.
We are both so angry about this at the moment.
How dare they. The $200 million is meant to be about saving a company that does not have the funds to save itself. YET the have no issue with wasting HUGE amounts of money on luxuries like racing.
And lets face it no matter what racing is a luxury that can only be afforded by the affluent and companies with money to burn. Now Holden are crying poor to the government. What for??? they obviously have still got huge amounts of money one would think if they are not only able to go racing but also INCREASE their expenditure on motorsport in the same year they are mean to be broke.
What gives here???
Someone from the government or Holden need to let the taxpayers of this country know what the hell is going on here, how can they possibly think this is OK.
Why has it been kept a secret.
I'll tell you why. cause they no its wrong. WRONG> WRONG!!!!!

Shame on you holden and Aus government.
I don't want my tax dollars going to a company that has NO morals.

[prydey]

i think the fact that it is seen as 'iconic' helps it to get away with a lot more with 'joe public'.

ford pulled money from motorsport and was critisized (admittedly mainly by forum members)
ford cancelled plans to build a small car here because they realise it wouldn't be financially viable - widely critisized by all and sundry

etc etc

holden continualy make promises they can't keep.

[Wally]

Originally Posted by Joe5619

I dont have a problem with the $200m if it helped saved jobs, etc,etc.. What I do have a HUGE problem with is the fact it wa kepted a secret. When was this money paid & why was the public not told? As a tax payer I have the right to know..

AFAIK no money has been drawn upon to date. No doubt it's a just a line of credit, but at cash rate.

Don't forget what initiated Utegate ... Ford asking Govt for a line of credit be put in place as a contingency and Greche put in charge of setting it up.

[Ghiadude]

Its a line of credit and as such has to be paid back - not a gift as i understand it.

[SM1DY]

I hate how they're splashing out on the V8 Supercars and then asking for handouts from the government. I think Ford should pick this up and run with it, get as much mileage out of it and promote the fact Holden shouldn't be getting taxpayer money if they can't manage themselves 'in-house'.

[asusdragon]

After reading the last few pages yes I agree with most of it.
Yes Im ok with holden getting a line of credit it keeps hard working aussie in a job.

What i am ****ed off about is Holden wasting money on V8SC the W427, (really the aussie public didnt need it and Holden lost money on it anyway.)

Sorry but Ford had to make the hard dicisions and pull out funding on V8SC they dont make huge over the top cars just to show off. Yhey have really pulled there heads in and looked at the future with out having to get more credit.