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Gm To Halt Car Production In Australia, Industry In Crisis

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http://uk.reuters.com/article/2013/12/11/uk-australia-gm-idUKBRE9BA03C20131211

General Motors Co (GM.N) said it would stop making cars in Australia by 2017 due to high costs and a cripplingly strong currency, fuelling fears rival Toyota Motor Corp (7203.T) will follow suit and put the entire local autos industry at risk.

The decision by the world's second-largest auto maker to close its Holden plants in South Australia and Victoria states is the latest blow to Australia's manufacturing industry and the auto sector in particular.

"No matter which way we apply the numbers, our long term business case to make and assemble cars in this country is simply not viable," General Manager Mike Devereux told reporters at GM's car plant in Adelaide on Wednesday.

Looks like Australia has priced itself out of the global economy.

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Would they have high wage demands because of the high cost of living, caused by something like a housing bubble?

High house prices - wrecking economies worldwide since 2003 B)

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Would they have high wage demands because of the high cost of living, caused by something like a housing bubble?

High house prices - wrecking economies worldwide since 2003 B)

I thought the high house prices enabled them to buy the cars via MEW???? :ph34r:

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GM has been wallowing in its own feces for as long as anyone can remember, a poster child for Krugmanite zombie capitalism.

Wonder what's to become of their $600m sponsorship of Man U now that they've given up trying to flog Chevrolets in Europe? :lol:

080312-SOCCER-man-u-chevrolet-EN-PI_20120803191313393_660_320.JPG

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Cars are so last year

What the Aussies need is an economy built on cheap immigrant labour delivering third rate rate Domino's Pizzas like the UK.

Believe me, i have been here 18 months, we have cheap immigrant labor delivering third rate rate Domino's Pizzas, mining is dying on its feet, manufacturing is fl**ked, they are just catching onto the fact that when everyone else has been devaluing, the Pacific Peso has been killing off any chance of an export led economy, oh and tourism is being affected big time. You watch the Ozzy dollar, its only going one way, and it ain't up.......

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When I was in Australia in April the news was full of the government chucking another Au$ Squillion at GM to keep cars being made there for another X years. Obviously X was until 2017.

At the same time, Julia Gillard was in China, doing a deal to trade Aussie $ for Chinese Yuan without having to mess with those pesky US greenbacks. Maybe all that coal and iron ore they are ripping out of the ground will be able to pay for Great Wall and other illustrious Chinese auto marques?

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GM has been wallowing in its own feces for as long as anyone can remember, a poster child for Krugmanite zombie capitalism.

Wonder what's to become of their $600m sponsorship of Man U now that they've given up trying to flog Chevrolets in Europe? :lol:

080312-SOCCER-man-u-chevrolet-EN-PI_20120803191313393_660_320.JPG

Yes. It disgusts me the lack of principles GMs competitors have too. The govt economists make up their lala land figures like 'saving GM has saved XXX jobs' as if people would simply not buy other cars if they couldnt buy a GM. WRONG. Ford, Nissan and others would pick up the slack and have to take on more labour.

If I were Ford or Nissan, and GM the fed.gov wanted to bail out my competitors, I would threaten to move all production from the US. GM should have died decades ago.

Of course, UAW and bungs to the political parties had nothing to do with the bailout.

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GM has been wallowing in its own feces for as long as anyone can remember, a poster child for Krugmanite zombie capitalism.

Wonder what's to become of their $600m sponsorship of Man U now that they've given up trying to flog Chevrolets in Europe? :lol:

080312-SOCCER-man-u-chevrolet-EN-PI_20120803191313393_660_320.JPG

:lol:

Government Motors pumping taxpayers' money to Manchester United FC plc.

Trickle up economics moves into top gear!

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GM is a broken business. Bailed out by the taxpayer, then re-floated at further loss to the taxpayer.

The only division of GM that made money was the military one, flogged to General Dynamics a decade ago.

Now they exist strictly due to their finance division. Finance on their crap cars for stupid yanks rolling over loans, over and over again. Twits.

US taxpayers lose $10bn after Treasury sells final stake in General Motors

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GM is a broken business. Bailed out by the taxpayer, then re-floated at further loss to the taxpayer.

The only division of GM that made money was the military one, flogged to General Dynamics a decade ago.

Now they exist strictly due to their finance division. Finance on their crap cars for stupid yanks rolling over loans, over and over again. Twits.

US taxpayers lose $10bn after Treasury sells final stake in General Motors

There was an article a while ago about yanks having to buy car tyres on subprime finance arrangements.

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There was an article a while ago about yanks having to buy car tyres on subprime finance arrangements.

Yes, but they were for upwards of £1k for the tyres, not a £40 one for your old Escort.

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:lol:

Government Motors pumping taxpayers' money to Manchester United FC plc.

Trickle up economics moves into top gear!

It occurs to me that Man U shirt sponsorship is something of a curse. Notable prior sponsors include both AIG and bankrupt Japanese electronics giant Sharp.

GM cost the American taxpayer a mere $50bn. The bill for AIG was more like $180bn! :lol:

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It occurs to me that Man U shirt sponsorship is something of a curse. Notable prior sponsors include both AIG and bankrupt Japanese electronics giant Sharp.

GM cost the American taxpayer a mere $50bn. The bill for AIG was more like $180bn! :lol:

Without singling out Man Utd any company who is blasting so much on sponsorship has a board on an ego trip and is heading for a fall.

RBS used to have multiple highly-paid "sports ambassadors" (I remember Jackie Stewart being one) who went to events shaking hands and "representing" their brand. And look what happened.

Current worst culprit IMO is Santander with Rory McIlroy, Jennifer Ennis, Jensen Button etc. etc. one big ego trip for the board as they watch the sport in the best boxes and forget about running the company properly.

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True.

Average new car US autoloan is now 110% LTV of the MSRP price.

Average used car autoloan 133% LTV MSRP price.

(Reuters) - U.S. consumers buyers are taking out bigger car loans with longer pay-back periods as lenders offer lower interest rates and accept borrowers with weaker credit ratings, a report released on Wednesday showed.

The average loan on a new car climbed to $26,719 in the third quarter, up by $756 from a year earlier, and the most in at least five years, according to data collected by Experian Plc.

Despite borrowing so much more, average monthly payments on new car loans rose only $6 to $458. That is because banks and finance companies were willing to lend at lower rates and grant borrowers more time to repay.

Lenders made 26.04 percent of their loans on new cars to buyers with subprime credit scores, up from 24.84 percent a year earlier, said Experian, which collects car title and financing information to compile its reports. For loans on used cars, the portion to subprime borrowers rose to 54.95 percent from 54.43 percent.As the lenders made bigger loans, they also extended credit further beyond the value of the vehicles. The average loan-to-value on new cars rose to 110.6 percent, up by 1.17 percentage points. On used cars it rose to 133.2 percent, up by 2.18 percentage points.

Auto lenders often provide loans that exceed the value of cars they are financing because borrowers want cash to pay sales taxes and fees.

Extra-long loans are becoming more common. Some 19 percent of new car loans were made for more than six years, up from 16.4 percent a year earlier.

For lenders, car loans performed much better in the last recession than had been expected. Some lenders have said that strapped consumers were more determined to keep up their car payments than their house payments because they needed vehicles to get to work or look for jobs.

That experience has encouraged lenders to be more lenient with people borrowing for cars. So far, the tactic has largely worked. The percentage of loans 30-days delinquent was down in the third quarter to 2.58 percent from 2.67 percent a year earlier, Experian said.

However, the average loss on loans gone bad jumped to $7,770 in the third quarter from $7,026 a year earlier and repossessions increased sharply, particularly for subprime borrowers.

http://www.reuters.com/article/2013/12/04/us-banks-autoloans-idUSBRE9B30K320131204

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So the plan is to stop paying the kinds of wages that would allow people to buy cars and replace them with wages that would not allow people to buy cars.

It's a good idea in the same way a bank holiday trip to coast is a good idea- until you hit the motorway and find out every other bugger has had the same idea.

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So the plan is to stop paying the kinds of wages that would allow people to buy cars and replace them with wages that would not allow people to buy cars.

It's a good idea in the same way a bank holiday trip to coast is a good idea- until you hit the motorway and find out every other bugger has had the same idea.

Its a race to the bottom its only a matter of time.

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