Business

No point in trying to hold on to Holden subsidies

1964 EH Holden Premier - detail. Photo: Chris Ison / The Morning Bulletin
1964 EH Holden Premier - detail. Photo: Chris Ison / The Morning Bulletin Chris Ison

WHILE it is a sad day that we will have to say farewell to manufacturing of an Australian icon, I say "it's been a long time coming".

I'm sorry people will lose their jobs (2,900), but they been given plenty of notice that General Motors will stop manufacturing Holdens in Australia in 2017.

What I am happy about is the fact Australian's taxpayers are not going to fork any more money out to 'save' an industry dying in this country. One lesson in money management is not to continue paying for something simply for the sentimental value.

Plus they are no longer forking out money for a company that has its headquarters on the other side of the world - Detroit, America.

Another lesson in money management is to keep your overhead costs down - this includes keeping management wages under $1 million a year. Full stop (no bonuses).

We have been moving towards a 'global economy' for some time now and in that economy, it was always forecasted that the manufacturing sectors would suffer in western societies as the other countries produce the goods for much less money.

And for a long time, cars have been made/designed with a shorter life span than the classics made in the 1960s and 1970s. It this design/manufacturing style has made it less financially viable to continue spending a high amount of money on a car that is only going to last 10 years versus high amounts of money on a car that lasts 30-40 years.

Cars have simply become a disposable as televisions, laptops/computers and cameras.

They have become as disposable as politicians and their policies in this country, which are now being thrown around parliament house in Canberra as part of the blame game.

No one person, business or political party is to blame for Australia's inability to keep holding onto Holden.

It is simply an inevitable evolution of the global economy cycle.

Topics:  business federal parliament general motors holden manufacturing



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