Car industry needs reinventing - Holden

[Sprint XR8]

By Tim Dornin
AAP
February 23, 2009 06:44pm
THE car industry must use the global economic crisis to reinvent itself, GM Holden chairman and managing director Mark Reuss says.
He says the industry must not sit on its hands as the economic turmoil unfolds, but work smarter to better respond to the changing needs and desires of motorists.

But he also warns the auto sector is facing a critical time in its history with the worst market conditions in living memory.

"Domestic and export markets are going from bad to worse," Mr Reuss told the Auto on Collins group in Melbourne today, an auto industry forum backed by the Victorian Government.

"We are facing the need to make rapid changes to structures and processes that, frankly, don't lend themselves to emergency surgery.

"The car industry was never designed to turn on a dime."

Mr Reuss said the auto industry remained critical to the nation and one that could emerge from the global downturn stronger than before.

"We need to approach these challenging times to structure the industry in a way that is sustainable," he said.
"It's about reinvention."

Mr Reuss said that despite the gloomy times, Holden would continue to advance its own programs, including plans to produce a new fuel-efficient, four-cylinder car in Australia from 2010.

He said reinvention meant looking at ways the industry could change course and work more efficiently.

"To do that we have to be smarter - smarter in the way we respond to the needs and desires of motorists, which are evolving with shifting consumer sentiment and growing concern around environmental factors."

His comments came after Holden's parent company General Motors presented a survival plan to the US treasury last week that called for the investment of more government funds and outlined plans to axe 46,000 jobs worldwide.

They also followed the Australian Government's commitment in recent months to provide a $6.2 billion program to stimulate the local auto industry.

The Holden boss took the opportunity to reject criticism of the car plan as just another loan or bail-out.

"That could not be further from the truth," Mr Reuss said.

"There are no blank cheques with this plan, no open lines of credit.

"It is based on co-investment. Holden and all other manufacturers need to make a significant investment in order to qualify for government funding.

"With industry and government working together, the Australian car industry can adapt, it can grow and it can remain a fundamental and very positive part of the national economy."
http://www.news.com.au/business/stor...-31037,00.html

[EgoFG]

Good statement

I would like to see a similar (ish) one from Ford

[Gobes32]

Originally Posted by EgoFG

Good statement

I would like to see a similar (ish) one from Ford

I think Ford Oz have got some tricks up their sleeves and they aren't ready to announce anything yet. Remember that Ford Oz have not tapped into the Green Car Fund yet? Me thinks there will be some big announcements in the next few months, Marin Burela is a very smart man and seems to know how to work the media.......

[imugli]

Me thinks right about the time the US Govt. put GM in a controlled bankruptcy would be a good time to make such statements... Bang for Buck. Good news amongst the bad, all that jazz...