250Million Holden Govt Package

[baxr603]

Hi Guys,

I am little dispapointed in the way (only)our Gov handled this.

Namely a Tax Payer funded emergency package for $250m for GmH.

I understand that this keeps and creates more jobs,which I am all for,but what exactly does it mean to not only the people like us paying for it,but the other companys in the same boat.

When Mitsubishi pulled out,there was never any mention of a package to help the hundreds who lost there jobs directly and the thousands associated in-directly.

Expensive Daewoo is an icon,and to think that it would go under is just crazy.

They will also get Tax Cuts and Subsidised Import Tarriff Duty on components.

They dont even have to pay this back.We do.

If you look at it as a $$$ value,the 250 million dollars makes 6,500 SV6's.approx 4-5months worth.

If u look at GM at a Global Value,that's peanuts.GM records MULTI BILLION dollar profits and is highly stable and bery profitable.

Why do we,as Tax Paying,Semi-Law Abiding Citizens have to pay a Global Corporation to keep making cars here ?

It was all hush-hush until it was approved....so its not like we had a choice !

And what does it mean to FORD,who are struggling also ?

Will they be subsidised to compete ?

Thanks.

[Dagabond]

This isnt a new thing....car companies have been subsidised since their inception.

As for Ford.....

http://www.smh.com.au/business/subsidies-drive-ford-profit-20110520-1ewtq.html

[ronburgundy]

Pretty sure Uncle Sam kicked in A FECKLOAD more than $250m to GMC a couple of years ago too.

In fact isn't he the majority owner now?

[tab]

Pretty good return on investment for the government, can't recall exact figures but they essentially expect to get five times that amount back in taxes from everyone that it supports. Which not only includes the company tax on Expensive Daewoo themselves and PAYG tax on the wages of their employees, but also all of their suppliers as well.

And then there's the old theory of maintaining manufacturing jobs in-case they are required for future war efforts. Which although it seems a bit far fetched it does have merit.

[Paulie2256]

I understand what you are saying but this is incorrect..

If you look at it as a $$$ value,the 250 million dollars makes 6,500 SV6's.approx 4-5months worth.

You have made the calculation based on the sales price. Needs to be the cost price.

[spic]

This isnt a new thing....car companies have been subsidised since their inception.

As for Ford.....

http://www.smh.com.a...0520-1ewtq.html

I vouch for this one as they spent a few dollars fixing up the front garden and the rest went straight back to head office in the USA. Not one red cent was spent on the plant as it was intended.

[discostig]

I wonder at what age "one red cent" doesn't make sense to kids today?

Bailouts for all!!!! I should apply.

[bionicxr6t05]

Basically it comes down to their australian operations not being sustainable, iv seen pretty much all you can possibly see of ford from the plant at broadmeadows right thru to research and development in geelong and its really impressive but god damn expensive to maintain, obviously Expensive Daewoo are doing something wrong to keep needing bailouts

[baxr603]

Wouldnt a better plan be subsidised purchases for choosing a Holden,Tax Payer Funded ?

So,if I wanted a SV6,I could purchase it for $29,500 after the Rebate ?

Let the Market decide ?

[Pete A]

GM globally may be coming back into the black but only on the handout of massive US Govt support (and they are broke also) I don't know where you got Billions of $ profits from. Hasn't been like that for years. I actually think the Aus GmH was probably profitable in their own right.

Ford rejected funding, hasn't asked for it, and hasn't needed bailout. They have a smart and profitable business and don't need it. With a bailout gomes a big expectation. GM majority shareholder is the US Govt and they will want their pound of flesh. So they will dictate future development not the purist GM people. The issues with viability of homegrown car industry will not go away. Ford is committed to a global platform. I think GM is as well. So irtrespective of the bailouts offered by Governmentsto keep local industry going , I think the local car industry (building that is) is on borrowed time. I hope I'm wrong but don't think I am. I have an FG6T and my daughter and wife have German built Fords. Fiesta Zetech and Focus Titanium. While I love the Falocn and what it stands for, the others are very good and well bulit cars for what they cost. If the next generation "Falcon" (no way they can keep the name if it's not designed and built here) comes from the US, Thailand or wherever, so long as the quality is up to scratch I personally don't mind. I hope the local industry does survive and we see the next "Aussie Falcon" but in the end how much will be Aussie? and the buzzards are circling.