Mitsubishi to Shut Adelaide Plant

[Bulldozer]

The problem with taking a purely economic view of tariffs is that it neglects the strategic importance of us having a manufacturing industry here. Manufacturing and designing cars requires a lot of skill and the facilities can serve a dual purpose - we can start cranking out military hardware if something bad happens. Which is what happened to all the car factories around the world during WWII. We're a geographically isolated country and so we really do need to be independent and retain the ability to manufacture things like that if the shit ever does hit the fan.

That being said, I know what a bastard it is to have the rug pulled out under you like that and lose your job. At least these workers have almost a couple of month's notice so they can start looking for work elsewhere.

Mitsubishi shot themselves in the foot with the 380 - trying to go up against Holden and Ford with a front wheel drive car, one with an ugly design and stupid name at that. They should have made it with a smaller engine or a factory gas or diesel option as well. Unfortunate, because all the reviewers reckon the 380 is a better car overall than the Holden and Ford offerings it was up against when it came out.

The future of car manufacturing in Australia lies in exports. The manufacturers need to find a niche and go for it. The previous Falcon platform wasn't capable of left-hand drive so Ford really didn't do themselves any favours there. I believe the new one will be though, so hopefully they can get some exports happening like Holden has. One thing Holden has going for it is that the Commodore platform is one of four for GM world-wide - the only rear-wheel drive one at that.

I think the government has an opportunity here to lure one of the new electric car start-ups like Tesla here to take over the Mitsubishi factory. Electric cars are the future and the whole world is going to want them. The government could buy the whole kit and kaboodle from Mitsubishi and lease it back to the new manufacturer.

[Edgar]

The problem with taking a purely economic view of tariffs is that it neglects the strategic importance of us having a manufacturing industry here. Manufacturing and designing cars requires a lot of skill and the facilities can serve a dual purpose - we can start cranking out military hardware if something bad happens. Which is what happened to all the car factories around the world during WWII. We're a geographically isolated country and so we really do need to be independent and retain the ability to manufacture things like that if the shit ever does hit the fan.

That being said, I know what a bastard it is to have the rug pulled out under you like that and lose your job. At least these workers have almost a couple of month's notice so they can start looking for work elsewhere.

I overheard a conversation at lunch today, someone was saying that there were rumours that the plant would close down way before. And that was when I haven't even move to Australia. And since I moved here, there had always had speculations on that matter too. Just a few months before, the rumours came out again, and judging from the sales of the cars they made, I strongly believe they would have heard something inside the factory themselves. And they didn't looked surprised at all, or so depressed as everyone expected. They took it positively, they know they are talented, and someone even said it is not the end.

GOOD, that is one kind of skills we need, and you guys are sobbing in this forum, you guys need to learn from these workers.

Mitsubishi shot themselves in the foot with the 380 - trying to go up against Holden and Ford with a front wheel drive car, one with an ugly design and stupid name at that. They should have made it with a smaller engine or a factory gas or diesel option as well. Unfortunate, because all the reviewers reckon the 380 is a better car overall than the Holden and Ford offerings it was up against when it came out.

First, they didn't shot themselves in the foot with the 380. It was a risk taking to find the possibilities of over-ruling the success of Holden and Ford in this country, obviously it failed due to many reasons such as brand-loyalty, and oh, I think that's about it . What should not have happened was, the setting up of Mitsubishi plant in Australia purely focusing on building one production line, it was a daring move, but a really stupid one, which cost them big time.

Second, what's wrong with FWD? RWD isn't the best either if you don't know the psychics of applying correct total weight of the car over power it can produce. You don't certainly think the new Holden VE Commodore is one of the best handling car in the world don't you? Just because the Holden-fan-club automotive magazines in Australia are praising the national pride, it didn't mean the rest of the world did. Australians are so easily brain-washed because of our very limited media playing around with their resources.

The future of car manufacturing in Australia lies in exports. The manufacturers need to find a niche and go for it. The previous Falcon platform wasn't capable of left-hand drive so Ford really didn't do themselves any favours there. I believe the new one will be though, so hopefully they can get some exports happening like Holden has. One thing Holden has going for it is that the Commodore platform is one of four for GM world-wide - the only rear-wheel drive one at that.

I think the government has an opportunity here to lure one of the new electric car start-ups like Tesla here to take over the Mitsubishi factory. Electric cars are the future and the whole world is going to want them. The government could buy the whole kit and kaboodle from Mitsubishi and lease it back to the new manufacturer.

What makes you think so? Our car export market is already suffering due to increase in costs, and also the strong Australian dollar over major trading currencies. Remember how Toyota president threaten to shut down its plant in Melbourne if the government do not do something to fix the current market situation?

UK market is out of the questions, our car is too big, too heavy, consuming too much fuel, not efficient (greenpeace offenders), and not practical, for the limited UK roads.

if US economy continues to deteriorate, export would be the same too.

Now we only hope the middle eastern found interest in our cars over the Japanese and European imports.

[jimmy_2486]

Strange how this happens right after Australia starts attacking the Japanese for whale hunting???

Revenge tactic maybe??

Maybe Mitsubishi has money invested in whale hunting in Japan??

[Bulldozer]

Second, what's wrong with FWD? RWD isn't the best either if you don't know the psychics of applying correct total weight of the car over power it can produce. You don't certainly think the new Holden VE Commodore is one of the best handling car in the world don't you? Just because the Holden-fan-club automotive magazines in Australia are praising the national pride, it didn't mean the rest of the world did. Australians are so easily brain-washed because of our very limited media playing around with their resources.

What's wrong with it? I don't know, but you've got to be thick as a brick to think you can compete in the large car segment in Australia with FWD. Regardless of any merits it may have, FWD has a stigma here. It doesn't matter what the rest of the world thinks because the 380 was only being sold here, and in Australia the market's perception is that only gutless little shitboxes have FWD.

What makes you think so? Our car export market is already suffering due to increase in costs, and also the strong Australian dollar over major trading currencies.

That's why we have to target niche markets - so that the products command a premium price. Australia just can't compete on volume when it's up against countries like China, etc. We have to be like Ferrari, make a quality product that commands a large price or we have to be like Japan and go down the route of increased automation to lower labour overheads.

That's why I suggested manufacturing electric cars - they are a new product, command a premium price and loads of people around the world are going to want them because they're so much cheaper to run than an oil-powered car.

[Edgar]

Second, what's wrong with FWD? RWD isn't the best either if you don't know the psychics of applying correct total weight of the car over power it can produce. You don't certainly think the new Holden VE Commodore is one of the best handling car in the world don't you? Just because the Holden-fan-club automotive magazines in Australia are praising the national pride, it didn't mean the rest of the world did. Australians are so easily brain-washed because of our very limited media playing around with their resources.

What's wrong with it? I don't know, but you've got to be thick as a brick to think you can compete in the large car segment in Australia with FWD. Regardless of any merits it may have, FWD has a stigma here. It doesn't matter what the rest of the world thinks because the 380 was only being sold here, and in Australia the market's perception is that only gutless little shitboxes have FWD.

What makes you think so? Our car export market is already suffering due to increase in costs, and also the strong Australian dollar over major trading currencies.

That's why we have to target niche markets - so that the products command a premium price. Australia just can't compete on volume when it's up against countries like China, etc. We have to be like Ferrari, make a quality product that commands a large price or we have to be like Japan and go down the route of increased automation to lower labour overheads.

That's why I suggested manufacturing electric cars - they are a new product, command a premium price and loads of people around the world are going to want them because they're so much cheaper to run than an oil-powered car.

Are you contradicting yourself here Bulldozer?

First you say there is no place in Australia for a large FWD car. That being said, but figures and facts speak for itself. Just before the end of last year, the total sales of Toyota's large car segment which is in FWD form outsold the Holden Commodore which also falls in the large car segment market by more than 400 vehicles (just in Dec alone). Little Shitboxes have FWD? VW, AUDI, TOYOTA, MAZDA, NISSAN, HONDA, CITRON, PEUGEOT all have large car models in FWD, and they sell well. So your assumed perception is wrong, wrong for the marketing department of Holden and Ford Australia and could pose future thread if they continue to think like you.

Secondly, if you would like them to target niche markets in producing good high quality thoroughbred sports car segment, then sorry, does that not mean that you have to lay off more employees because you are going to be producing in smaller volumes with higher operating cost and lower turnover rate?

Before we even bring in overseas car manufacturer, we are better off pointing the future of Holden and Ford in Australia, at this rate, they are not doing so well. Rather than say, niche market, why not take control of the general market? Why not build cars that people wants to buy? Is producing a new model line in Australia from Holden to cater for the FWD large car segment would results in a shame to the national car manufacturer's pride?

They have too much pride, and over-crediting themselves all the time, plus the blind support from the Australian public, is the results of closure of more car manufacturing plant in Australia, and people losing their jobs in car manufacturing is going to become a hot topic in the future.

[Cruise]

I have my fingers crossed that the VE will soon get displacement on demand (should boost sales)

[Wayno]

an aside: i read in the financial review yesterday that the SA Govt wants to keep the ex-Mitsubishi site as an industrial park - probably will cost too much to cleanup for residential purposes...

[Shuz]

Well, thats logical really. While were at it, forward planning must be ensured that reservations are set aside adjacent the Main South and South Road for upgrading and widening of the roads in the near future, when we establish it as a expressway or freeway standard road. There should also be some land reserved for the duplication of the Tonsley rail corridor as well.

[Wayno]

Well, thats logical really. While were at it, forward planning must be ensured that reservations are set aside adjacent the Main South and South Road for upgrading and widening of the roads in the near future, when we establish it as a expressway or freeway standard road. There should also be some land reserved for the duplication of the Tonsley rail corridor as well.

...and consider keeping enough land for a park-and-ride carpark (as per mm42's idea of a few days ago)!

[Wayno]

apologies if this has been posted elsewhere....
http://www.theaustralian.news.com.au/st ... 87,00.html

Firms jostle for Mitsubishi site
A COMPANY hoping to build the army's new fleet of trucks and another with a plan for hybrid cars are among the queue of hopefuls lining up to move into Adelaide's soon-to-be-vacant Mitsubishi car factory.

Tenders closed yesterday for the Tonsley Park site, and are believed to include a mining company, a computer manufacturer, and a US firm looking to launch a 300-job operation in Australia.

Defence manufacturer BAE Systems, the preferred bidder to supply the army with 7500 new trucks by 2016, is believed to have tendered for the site.

The British defence giant's factory near the Edinburgh RAAF Base, north of Adelaide, is too small to accommodate the truck contract, as is its recently purchased Tenix factory at Wingfield.

BAE could not be contacted yesterday, but its former managing director Peter Smith said it would need a new factory to build the army trucks.

Mr Smith said the Wingfield plant that came with BAE's takeover of Tenix in January was unsuitable for the project. "I don't think that's big enough so it's probable that they will need some space," he said.

Among BAE Systems' competitors for the Mitsubishi factory is a company hoping to build 30,000 hybrid cars a year.

The Universal Design Company wants to build motor bodies around imported hybrid engines, focusing on what it sees as a gap in the market worldwide - disabled-friendly taxis.

Australian Manufacturing Workers Union state secretary John Camillo said yesterday the company's boss, Chris Burrell, had pinpointed strong demand for taxis adapted for the disabled, especially in the US.

Mr Camillo said the proposal had been pitched to the SA Industry and Trade Department, but it would proceed only if UniCo was given $35million in federal and state funding. "All of the plant is there but it really needs the state Government and federal Government to back it," Mr Camillo said.

"I think it could be a goer. But if the Government's going to put $35 million down, he needs to show that it's a goer."

Mr Camillo said further details of the tenderers would be announced in the coming week, but he understood they included "defence trucks", a local manufacturer looking to expand at a new factory, and a mining firm.

A spokeswoman for Industry Minister Kim Carr said the federal and state governments were finalising details of a fund to attract industry to the Mitsubishi site.

Applications for industry assistance would be accepted after a deal was struck, which would happen "as soon as possible".

Mitsubishi announced in February it would close its Tonsley Park factory, in Adelaide's southern suburbs, at the end of this month.

[Cruise]

no matter the outcome, it all sounds good!!!

[Edgar]

yes! Close for the good. In Chinese there is a saying "If you don't let go the old, the new will not come"

[Wayno]

More woe for the Adelaide auto-manufacturing/assembly industry will result from this downsizing activity in Melbourne...

http://www.abc.net.au/news/stories/2008 ... =australia

Holden says jobs will be lost when it ends production of four-cylinder engines at Fisherman's Bend in Victoria, within 18 months.

But the company says it will try to absorb the workers into other areas of its manufacturing plant.

The company's managing director, Mark Reuss, says more than 500 jobs will be affected.

"We will spend the next 18 months working with those employees affected to minimise the impact on them, including investigating what redeployment possibilities may be possible," he said.

Ian Jones from the Australian Manufacturing Workers' Union has questioned the timing of the announcement, given that an inquiry into the automotive industry is continuing.

"We would have thought it more appropriate to wait for the announcement to come once they understood all of the opportunities that have come out of that inquiry," he said.

Holden says its other operations, including the V6 engine plant at Fisherman's Bend, will not be affected.

Holden's executive director of manufacturing, Rod Keane, says the decision to end the production of the engines after 27 years was inevitable.

Adelaide plant
The AMWU's South Australian secretary, John Camillo, says he has been assured by Holden that the car-maker's assembly line at Elizabeth in Adelaide's north will not be affected by the announcement.

"As soon as the union found out about Holden's announcement this afternoon we got in contact with senior executive at Elizabeth, Rod Keane, and he assured us there'll be no job losses at the Elizabeth operations," he said.

But he says four South Australian component makers do supply the Melbourne plant.

"Our concerns at this stage is whether they'll be any job losses or whether any of those car components suppliers could close shop," he said.

"So the next few days or the next few weeks we'll be in a better position of finding out whether this has a minor effect or a major effect on those four car suppliers here in South Australia."

'Industry progression'

Federal Industry Minister Kim Carr says the job losses are part of the industry's natural progression towards more modern, greener technology.

He says he is concerned for the future of the workers who have lost their jobs.

"We want them to know that this Government [is] working with the international motor companies Toyota, General Motors and Ford to encourage new investment in the industry, and so we can open up new opportunities so we can see this industry move to a more sustainable basis," he said.

Federal Opposition Leader Brendan Nelson says state and Federal governments need to protect Australia's automotive industry.

"Being able to build cars in this country of the very high quality that we do now, that are price competitive with the rest of the world is a very important thing we have got to work hard to protect," he said.

Dr Nelson says he feels for Holden workers whose jobs are in doubt.

"We also expect the Federal and the Victorian Governments to work with one another to see that not only they are able to transition into other forms of employment but we strongly support a continuation of an Australian car building industry," he said.

[Cruise]

This decision does not surprise me really, building an engine in a high cost labour country only to export it for use in a low cost labour country?


The Maths don't add up.

[Omicron]

This decision does not surprise me really, building an engine in a high cost labour country only to export it for use in a low cost labour country?


The Maths don't add up.

Not only that, but it's not a particularly notable engine. I for one am hoping to see a Volkswagen Twincharger-esque engine emerge from GM in the near future.