Skip to main content

Holden Closure - Money and Investing with Andrew Baxter

GENERAL MOTORS AXES HOLDEN IN AUSTRALIA

Holden Closure: After their lowest monthly sales ever since their opening in 1948, General Motors has culled the Holden operation in Australia for good. What this holds for the Australian economy may be worrisome.

164 years of history, gone.

General Motors, Holden’s parent company, established iconic Aussie car brand way back in 1948 – this particular manufacturer over 164 years.

The fact, not only a sign of times with our ever-growing global economy but also highlights how uncompetitive has been.

What went wrong

To be plain honest, Holden lost its relevance within the minds of Australian consumers. Holden’s go to marquee vehicle the Commodore sits in the 5th least popular car category in Australia, classified as a ‘large car’. Little to Holden’s knowledge, marketing idea to the modern Aussie consumer needed to include SUV’s and small cars which have ten times sales large cars do in recent years.

In Addition, Aside from losing their relevance, Holden had poor cost management. To the surprise of many, the average salary of a production line worker at Holden sat at $80k – $100k. A whopping amount of remuneration for their somewhat 600 odd employees – most unskilled.

The Aussie economy – a matter of cutting our own lunch.

One thing we can learn from the almighty leadership of US President Donald Trump is the mandate to buy America first. In order to avoid tariffs and support their own economy, Americans manufacture in the US they also buy goods. Unfortunately, our own demise as host Andrew Baxter describes Aussies LOVE to cut our own lunch and buy foreign products.

Moreover, Not only does this reduce spending in our home economy, but also adds pressure to the various manufacturers operating here.

The Aussie government is a part of the problem

Let’s make this clear – this isn’t a government bashing session, that would be too easy. Nonetheless it is important to know that in 2013, $2.13b of Aussie tax-payer dollars was funnelled into Holden to keep the brand afloat under the Abbott government. Fast forward to December 2019 and here we see the Morrison government has replaced all of their Holden government cars with Toyotas and BMW’s. A contract once previously held by your beloved Holden Capris now belongs to the Japanese and the German’s. Like everyone else who never purchased a Holden car – the Aussie government is a part of the problem.

 

Comments

Popular posts from this blog

Ensuring Your Legacy: The Importance of Estate Planning and Wealth Preservation

Introduction Estate planning and wealth preservation are vital components of financial management that extend far beyond the realm of the affluent. Regardless of one’s economic status, creating a comprehensive plan ensures the orderly distribution of assets and minimizes potential disputes among heirs. This article delves into the significance of estate planning and wealth preservation, exploring key strategies to safeguard and transfer wealth effectively. Understanding Estate Planning Estate planning is the process of organizing and managing one’s assets during their lifetime and determining their distribution after death. It involves a thorough examination of financial holdings, including real estate, investments, business interests, and personal belongings. The primary goals of estate planning are to minimize taxes, ensure a smooth transfer of assets, and provide for loved ones in accordance with the individual’s wishes. One essential component of estate ...

Why Investment News Will Help You Make More Confident Decisions - Australian Investment Education

  Many “would be” investors think the best way to make profitable trades is to get a trading platform, look at the charts and just give it a go. If only it were that easy… Over a thirty year professional trading career and having helped “rehab” thousands of investors, I have learned that there is a lot more to it than that! And that’s where Investment News comes in.

Navigating the Top 5 Market Trends in 2024 - Andrew Baxter

  1. Artificial Intelligence and Tech Stocks Artificial intelligence (AI) continues to dominate discussions in the financial markets . Tech stocks, particularly those involved in AI, have shown remarkable performance. The NASDAQ, driven by companies like Nvidia, has seen impressive gains, echoing the strong performance of 2023. However, this sector’s success also brings volatility. Overvaluation and shifting market sentiment could lead to sudden downturns. It’s crucial to monitor these stocks carefully and consider diversifying your portfolio to avoid overexposure to this volatile sector. 2. ESG Investing Environmental, Social, and Governance (ESG) investing has been a hot topic throughout 2024. However, the enthusiasm for ESG seems to be waning in the face of economic pressures. Countries like the UK have reconsidered their carbon-neutral goals due to economic constraints, and companies like Fortescue Metals have scaled back their green energy projects. While ESG remains important...