Carr to Detroit to rescue Aus Car Industry

[FPV8U]

Tax breaks on New Australian built cars like the Commodore, Falcon, Territory, Cruise, Ect would go a long way to helping boost sales. by making them even cheeper compared to their imported rivals.

Making the Govenment buy 100% Aussie made cars, even going down to local council level unless there isn't a car made in that segment I.E twin cab ute.

[Joe5619]

Originally Posted by FPV8U

Making the Govenment buy 100% Aussie made cars, even going down to local council level unless there isn't a car made in that segment I.E twin cab ute.

Why this one isnt already here & law is crazy!!! And it should not just be on cars, anything Aussie made the governemnt should be made to buy over imported by law.. If they dont support Australian made, why should we??

[FPV8U]

Originally Posted by Joe5619

Why this one isnt already here & law is crazy!!! And it should not just be on cars, anything Aussie made the governemnt should be made to buy over imported by law.. If they dont support Australian made, why should we??

Couldn't agree more.

[jpd80]

Originally Posted by FPV8U

Tax breaks on New Australian built cars like the Commodore, Falcon, Territory, Cruise, Ect would go a long way to helping boost sales. by making them even cheeper compared to their imported rivals.

Making the Govenment buy 100% Aussie made cars, even going down to local council level unless there isn't a car made in that segment I.E twin cab ute.

Making vehicles Fleets want to buy would be a start....EcoLPI and Ecoboost is a start.

[P6LTD351]

But I thought Ford were making SO much profit selling hardly any Falcons? Why is the situation so desperate? Oh, um....that's right, they hardly sell any Falcons.

[vztrt]

Originally Posted by eb2monty

But I thought Ford were making SO much profit selling hardly any Falcons? Why is the situation so desperate? Oh, um....that's right, they hardly sell any Falcons.

So why is the Commodore facing the axe cause its such a great seller??

[P6LTD351]

Originally Posted by vztrt

So why is the Commodore facing the axe cause its such a great seller??

Yes they are both in trouble but some people on here seem to think that the Falcon can survive selling 1500 per month.

[Bossxr8]

If the government is so concerned about saving the auto industry why don't they start implementing the same dirty tricks the other countries use to protect their industries?

Like how Thailand totally destroyed Fords exporting of Territorys there by implementing a new tax that effectively killed Territory overnight. Yet we buy tens of thousands of Thai built vehicles. Eye for an eye I say.

[vztrt]

Originally Posted by eb2monty

Yes they are both in trouble but some people on here seem to think that the Falcon can survive selling 1500 per month.

Some people also can't understand that selling the most doesn't make you profitable.

You have to remember that the Terri is also built on the same line. Holden gets better figures as it has the sports hatch to add to its figures. If Ford has budgeted to make a profit by making as much as they sell then they have a good business plan. This is of course if they are making the required profit.

Something does need to change (and it will) but Ford need to be careful not to stuff up and bleed money like the VE did.

[MethodX]

Originally Posted by Blue Blooded

Me being one of them

Not me.
More tariffs needed. Or tax breaks. It isnt a level playing field.

[luibagtp]

Whats sad about all this is if we don't have a car industry in Australia around 10000 people (i'm guessing) will be out of work at both Ford and Holden and also thousands more that play a support role in the industry will be out of work too.

Where is this country going we all can't work in an office we need industry so we don't lose our skills sorry to get to political

[bobthebilda]

Originally Posted by luibagtp

Whats sad about all this is if we don't have a car industry in Australia around 10000 people (i'm guessing) will be out of work at both Ford and Holden and also thousands more that play a support role in the industry will be out of work too.

Where is this country going we all can't work in an office we need industry so we don't lose our skills sorry to get to political

I'm guessing about no more than 14,000 people are directly employed by the three manufacturers and the suppliers that directly support them, in australia. The main point being, that roughly 12 million other australians seem to do ok not being employed in the auto manufacturing industry in Australia.

The sad point about it is that the waitress who earns $30,000 dollars a year trying to support two kids, has to fork out an extra $50 a year in tax, so someone like Mike Deveraux can get rewarded with $800,000 a year for moaning and groaning to the government.

[jpd80]

Originally Posted by bobthebilda

I'm guessing about no more than 14,000 people are directly employed by the three manufacturers and the suppliers that directly support them, in australia. The main point being, that roughly 12 million other australians seem to do ok not being employed in the auto manufacturing industry in Australia.

The sad point about it is that the waitress who earns $30,000 dollars a year trying to support two kids, has to fork out an extra $50 a year in tax, so someone like Mike Deveraux can get rewarded with $800,000 a year for moaning and groaning to the government.

Bob, your math is off, $800,000 divided by 12 million tax payers is $0.07/year....not $50/year
See what happens when you get caught in a lie....

[Road_Warrior]

Originally Posted by dogfish

For a start Remove the GST off of Fuel so we don't have to pay more TAX for every cent it climbs.
Then Remove all the other Taxes off of Fuel as well and Australians May want to BUY big cars again.
Greedy Bloody Government.

So would you rather have to pay no taxes of any kind, at all?

[bobthebilda]

Originally Posted by jpd80

Bob, your math is off, $800,000 divided by 12 million tax payers is not $50 a year...it's seven cents....

If we only had to pay for Deverauxs $800,000, then things probably wouldnt be too bad. Unfortunately the other 12 million who work for a living are forking out around $600 million a year. $600 million divided by 12 million averages out to be about $50 each a year.

[jpd80]

Originally Posted by bobthebilda

If we only had to pay for Deverauxs $800,000, then things probably wouldnt be too bad. Unfortunately the other 12 million who work for a living are forking out around $600 million a year. $600 million divided by 12 million averages out to be about $50 each a year.

Of which Ford was paid $42 million for Eco LPI, Ecoboost and diesel Territory, a one off cost of $3.50 to all tax payers.
The Euro 4 upgrade government tip in was $13 million , a one off cost of $1.10 to all tax payers.

That is chicken feed....


See Bob, nothing like $600 million a year in assistance is available, never was....GCIF was effectively cancelled in January
Most of the grants have a three to one investment rule to qualify, without manufacturers tipping in serious cash, they don't get funds.

LINK
In 2007 the Federal Government pledged $5.4 billion of financial support to the local car making industry and its suppliers through to 2020 -- and called it the New Car Plan. In 2008 this figure grew to $6.2 billion with the addition of the Green Car Innovation Fund -- and the name changed to New Car Plan for a Greener Future.

The extra GCIF funding, however, was short-lived. It was cut twice in the lead-up to the 2010 Federal election -- $200 million was cut to the supplier base and a further $200 million was cut to vehicle manufacturers. Following the disasters in January, the remaining GCIF funds were frozen -- but funding already pledged was secure.

Holden received $149 million from the GCIF and another $30 million from the South Australian government to go towards its new Cruze small car, which will be made at its Elizabeth factory from next month.

Ford received $42 million from the GCIF and an undisclosed amount from the Victorian Government to go towards a diesel Ford Territory and the four-cylinder Falcon.

Toyota received $35 million from the GCIF and an undisclosed amount from the Victorian government to go towards the hybrid Camry program.

[Jim Goose]

http://smh.drive.com.au/motor-news/f...106-1pogb.html

Ford plays down minister's meeting with US car bosses
Stephen Ottley
January 7, 2012

High-level talks ... CEO of Ford Australia, Bob Graziano.

THE president of Ford Australia, Bob Graziano, has played down the significance of high-level talks between federal minister Kim Carr and auto industry executives in the United States next week.

Mr Graziano says Australian car makers are in regular contact with the government about support and future commitments despite ongoing uncertainty about the future of the Australian-made Falcon and Territory. Falcon sales for 2011 were the worst in its 60-year history.

"Ford Australia has good dialogue with government at all levels and the lines of communication are always open," Mr Graziano said.
Advertisement: Story continues below

Local car makers have been campaigning for more government assistance in order to commit to long-term investments that could top $1 billion and carry local manufacturing into the next decade.

GM Holden managing director Mike Devereux said last year that the current levels of government assistance were insufficient to sustain local car manufacturing.

At Toyota Australia, the executive vice-president David Buttner, said: "When you're manufacturing and you've got an overseas parent there's got to be a policy regime that gives your parent confidence to invest in the mid- to long-term."

Senator Carr's rescue mission is seen by some as a desperate attempt to protect an industry struggling against a strong dollar. "It is clear that Senator Carr remains a very strong supporter of the whole auto industry here," Mr Graziano said.

[JG34JA]

just... Sell them dirt.

What could possibly go wrong?

[jpd80]

Originally Posted by eb2monty

But I thought Ford were making SO much profit selling hardly any Falcons? Why is the situation so desperate? Oh, um....that's right, they hardly sell any Falcons.

Here's a clue for those that pretend to know company finances,
compare Holden's sales and annual losses since 2005 with Fords over the same period and then tell me
again how selling more guarantees any kind of profit...GM went to bankruptcy leading the sales race...

What Ford is doing with falcon is hanging waiting for an upswing and while doing so cutting costs
where ever they can. A profit last year will be hard but getting by and surviving is the key here...

The reason Ford doesn't declare as big a profits as Holden?
They are paying down an internal debt of around $475 million,
that takes priority over a profit....

[dddd]

As far as the senator going over to the USA to save our car industry, its nothing more than a expensive tax payer funded joke, its all a public relations exercise, his only true important mission is to make headlines and make it appear they are fighting for their beloved workers.

Let me see, they bring in a work place agreement that makes it considerably harder for Australian companies to compete with overseas companies (yes I realise the average worker will get better pay and conditions because of this new agreement but are we foolish enough to believe their will be no pay of for this)

Next they attack about one of the only advantages Australia had, cheap energy, ie coal powered stations, with this carbon tax which will hit everything and everybody, which I might also add 90%(or thereabouts) of our competing countries will never have and the remainder that do have it have it at a miniscule rate compared to what we will have it at.
Combine the above with the high Australian dollar and its not just the car industry we have to worry about

The fact is we are in a world market and companies will pull out of any given country if manufacturing gets too expensive or difficult, and simply manufacture it in a cheaper environment

Hell they have created the very environment that's undermining Australian industry, I will say it again the true purpose of this visit is to make headlines and to make it appear as if they are trying to save Aussie jobs.
Why not just create an environment that encourages growth in the manufacturing industry in the first place, as we had done during the Hawk,Keating and Howard years

[Joe5619]

Can someone explain to me (very basically & in dumb terms) what the government can do (if any thing) to help move the dollar from 1.00 back to 0.65? Serious question, not trying to be smart. That alone would help all Australian manufacturing & disadvantage all imports greatly.

[dddd]

Originally Posted by Joe5619

Can someone explain to me (very basically & in dumb terms) what the government can do (if any thing) to help move the dollar from 1.00 back to 0.65? Serious question, not trying to be smart. That alone would help all Australian manufacturing & disadvantage all imports greatly.

Very little actually, dropping interest rates might help slightly. The real reason our dollar is high is because the US dollar is so weak, (hell they are printing there dollar over there like its going out of style) but with the US economy starting to pick up now, so should the US dollar start to pick up.

What does drive the AUD down fast is any sign of a global turn down, Australia is viewed as a commodities market, ie we survive off our exporting of minerals (pretty true).But a global turn down is the last thing we want (sort of a catch 22)
So we just have to wait until the US (already started) and Europe (god only knows when that will be) economies pick up thereby making their own currency's stronger

[jpd80]

Originally Posted by Joe5619

Can someone explain to me (very basically & in dumb terms) what the government can do (if any thing) to help move the dollar from 1.00 back to 0.65? Serious question, not trying to be smart. That alone would help all Australian manufacturing & disadvantage all imports greatly.

America government has a $15 trillion deficit and the European union is spending money to rescue Greece, Ireland, Italy ect, ect...

Australia is in the hole for $37 billion but expects to be level again in a year or two.
America is paying for years of excesses and reckless disregard of questionable trading in stocks, derivatives and
repackaged sub prime lending, the whole lot threatened to slide off the end of the earth had they not spent more cash.

Years of deficit budgets to placate US tax payers, the war on terror, any other thing you can think of.
America isn't getting out of this any time soon, neither is Europe...

[dddd]

Originally Posted by jpd80

America government has a $15 trillion deficit and the European union is spending money to rescue Greece, Ireland, Italy ect, ect...

Australia is in the hole for $37 billion but expects to be level again in a year or two.
America is paying for years of excesses and reckless disregard of questionable trading in stocks, derivatives and
repackaged sub prime lending, the whole lot threatened to slide off the end of the earth had they not spent more cash.

Years of deficit budgets to placate US tax payers, the war on terror, any other thing you can think of.
America isn't getting out of this any time soon, neither is Europe...

This is something people really need to understand, when the government says it will return to surplus by year whatever,its not saying the debt will be gone it's saying it will stop spending more money than whats coming in.

The debt is still there to be paid off (which is actually closer to 200 billion not 37 billion). It should also be noted it took the Howard government some 10 years approximately to pay off the Hawk, Keating debt of 96 billion before finally leaving a surplus of approximately 36 billion (not that it lasted long)

Also with regards to the US I was only suggesting their economy is picking up nothing else, their debt will not be paid back in our life time

[Nikked]

-tax breaks on local cars
-'bribe' GM/Ford, Government will buy cars of that brand.
-Deals with outher countries. Will drop the import on this product, if you agree to drop the import cost on say, a Falcon/commodore export.

[blownv8au]

Originally Posted by dddd

This is something people really need to understand, when the government says it will return to surplus by year whatever,its not saying the debt will be gone it's saying it will stop spending more money than whats coming in.

The debt is still there to be paid off (which is actually closer to 200 billion not 37 billion). It should also be noted it took the Howard government some 10 years approximately to pay off the Hawk, Keating debt of 96 billion before finally leaving a surplus of approximately 36 billion (not that it lasted long)

Dude you are so far off it not funny us debt is 15,200,000,000,000 + on the debt clock i checked two minutes ago. they can't even afford to fix their own infostructor so how can they pay this off asap. and not to get to political but it easy to build a surplus when your spending bugger all money on you country. as to the orginal op i stand by what i've said what is it that carr can really achive? wait i can answer that myself, not a bloody thing but atleast he'll get to see the motor show.sorry dddd i thought you were refering to the us economy. appologys.

[dddd]

Originally Posted by blownv8au

Dude you are so far off it not funny us debt is 15,200,000,000,000 + on the debt clock i checked two minutes ago. they can't even afford to fix their own infostructor so how can they pay this off asap. and not to get to political but it easy to build a surplus when your spending bugger all money on you country. as to the orginal op i stand by what i've said what is it that carr can really achive? wait i can answer that myself, not a bloody thing but atleast he'll get to see the motor show.sorry dddd i thought you were refering to the us economy. appologys.

Well you had me totally confused (does not take much these days) at the start of that thread as I wasn't talking about the US debt as you later realised, however I would like to put a question out there in relation to your comment about the Howard government not spending on infrastructure. Considering the currant 200B and growing debt we have now, how much do you believe future governments will be able to spend on its future infrastructure budget ??
IE I would suggest to you he may have been busy paying of the previous governments 96B debt

[falconnut]

with police only between the hours of 8am-4pm and fewer of them (2000 instead of 3000+) i hope he doesnt come back dead :(

Detroit is not in its best condition either....

[Blue Blooded]

In the Sunday Telegraph today:
8 Jan 2012 The Sunday Telegraph (Sydney) Cash to firm Ford’s future

THE future of Ford Australia will be confirmed in the US on Tuesday with good news expected for the company’s 3500 production staff and a boost for the economy.

A fresh injection of more than $50 million is coming from Ford Motor Company that will secure the immediate future of the Falcon and Territory despite the worst showroom result in the history of the Ford flagship in 2011.
An announcement is planned for the Detroit motor show involving Ford’s global chiefs, local president Bob Graziano and a government delegation led by Federal Industry Minister Kim Carr.

The investment comes as Ford Australia andgmh jockey for positions in the plans of their global parents.


Is this something new?

[falconnut]

Great news, thanks blood!