Dec 11, 2013

New GM boss unlikely to change her mind on Australian closure

The new CEO of General Motors is unlikely to reverse the company's reported decision to close its Australian operations -- she's the one who made it, Glenn Dyer and Bernard Keane report.

Mary Barra

General Motors has a new CEO, and it’s the executive who has played a key role in reviewing the company’s future in Europe, South Korea and Australia. And so far that executive has convinced the GM board to cut in Europe, cut in South Korea and make other changes, and reportedly to close Australian operations.

The incoming chief executive at GM is Mary Barra, the first woman to head the company and previously the car maker’s global head of product development, purchasing and supply chain. For the past year or more she has been charged by the outgoing CEO and chairman, Dan Akerson, with reviewing GM’s operations in poorly performing assets in Europe and Asia. In the past week or so, we have seen more results of that review emerge from GM with cuts in Europe, South Korea and the decision reported in the Wall Street Journal this week to close Holden from 2016. Media reports of that decision have not been categorically denied by GM or Holden in this country.

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4 thoughts on “New GM boss unlikely to change her mind on Australian closure

  1. Dulong Ttil

    The latest China’s international trade figures, which were released during last weekend, are good but only limited to the Export from China. The figures of Imports into China are weak and have actually dropped significantly. It means China’s demands on importing goods from other countries, e.g. Australia etc. has been reduced substantially.

    This is a not a good signal to Australia.

    In such unfavorable case, the Australian government should consider to adopt stronger monetary easing policy to drive the AUD downwards healthily. So, our Export competitiveness can be strengthened again and, our economy can be improved.

    Hope this can improve our car export business and save Holden.

  2. Simon Mansfield

    Happy now boys?

  3. michael r james

    “(Joe Hockey claimed)… remitting Australian profits to Detroit”

    Seriously, this is going to go unquestioned?

    (Of course since GMH is not a listed Australian entity and I am guessing their performance is not separated out clearly in any GM annual report, this might have a convenient air of mystery to it.)

    Meanwhile, with their ≈$3 to $4bn fossil fuel subsidies (EACH year) and massive infrastructure tax writedowns (ie. part subsidized by the Australian taxpayers) the Big Miners repatriate upwards of 70% of profits via dividends to their non-Australian shareholders without a murmur from anyone.

  4. Dulong Ttil

    I believe that what the Japan’s monetary easing policy is doing to push the YEN downwards healthily is an appropriate action for the Australian government to contemplate. In a layman term, just print more money to make the currency move downwards peacefully.

    Since the YEN is much cheaper now than before, the Japanese export and tourism businesses now become active again. This is exactly what we want to see here in Australia.

    The Australian government needs to consider adopting similar monetary easing policy to drive the AUD downwards rightly. So, our Export competitiveness can be strengthened again and, our economy can be improved.

    This can help improving our Car Exports to other countries and save our car manufacturing industry.

    Japan just announced the other day another 60 Billion economy Stimulus plan…………Why cannot Australia?

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