The industry analyst who yesterday claimed that General Motors and its Australian subsidiary GM Holden will both collapse is participating in shameless self-promotion, the company says.
Editor of the Dog & Lemon Guide, Clive Matthew-Wilson, yesterday said in a statement that local car manufacturers Holden, Ford and Toyota will all close due to the downturn.
“Australia’s car factories are losing money on every vehicle they make,” he said. “No amount of incentives from the state and federal governments can solve this basic problem. It’s not a matter of whether they close down, but when they close down.”
But a Holden spokesperson has lashed out against the statement, asking “What data is he basing his views on when happily sounding the death knell for Australian car makers and employees?
“We’ve never had a request from this individual to speak with our executives, to discuss our company business plans or review the business case for our new fuel efficient, four-cylinder small car,” the spokesperson told Reuters.
“This is shameless self-promotion at the expense of our industry, our organisation and our employees.”
The spokesperson also said that the company has no plans to withdraw from local production, and will withstand the downturn.
“We’re in there fighting in a pretty tough global environment, and we won’t be discouraged by bystanders.”
Matthew-Wilson’s comments were sparked by Holden’s decision to halve production at its Adelaide plant.
But while the company says it has plans to continue with production of a new four-cylinder car from next year, the signs from its US parent company General Motors aren’t promising.
GM shares fell 16% overnight to $US1.71 after fear spread that the US Government will force the manufacturer, which has received $US13.4 billion in emergency funds, into bankruptcy.
President Obama has said that from 31 March, GM has 60 days to prove its viability or it must face a possible bankruptcy. As part of the restructuring process, former chief executive Rick Wagoner has been replaced by Fritz Henderson at President Obama’s urging.
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Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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