A Sad Bad Day for Holden and Australia

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Coaches and Trainers AustraliaTony Abbot described yesterday as a "Sad Bad" day for Australia as Holden announced its closure in 2017 after 60 years.

Holden is following the demise of the car manufacturing industry in Australia leaving on Toyota holding on.
Holden general manager Mike Devereux, said yesterday "this is an incredibly difficult day for everybody at Holden, given our long and proud history of building cars in Australia".
But added: "As painful as it is to say, building cars in this country is just not sustainable."

According to Devereux the brand will stay in Australia, however all cars would be built overseas, mainly in our neighbouring Asian countries where labour and manufacturing cost will be significantly lower.
Holden is not just looking at closing the manufacturing facilities but it will also close its car testing facility at Lang Lang on the southeast outskirts of Melbourne and sack up to 1000 vehicle dynamics engineers and headquarters staff associated with purchasing and manufacturing.

However is it all Sad Bad? The cost of spending government money to support an industry tends to be overlooked. It runs into the billions and of course it is not getting any less. Now up to the government to prove it can effectively invest this money elsewhere. More support will be given to those that loose their jobs at Holden than if they lost their job working elsewhere. Australia in 2017 will be very different from today so who knows what will happen in the meantime?

One thing is certain whatever happens car manufacturing in Australia as it is not is not sustainable.

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