Shutdown for Holden

GM HOLDEN will cut 13 days of Commodore production in July and August to help clear current stocks in readiness for the introduction of the facelifted 2011 model-year Commodore later this year.

The move pre-empts the release of the updated Commodore sedan, wagon, ute and long-wheelbase range, which is expected to bring only minor updates and E85 ethanol capability.

The company says it anticipates a great response to the updated Commodore, which Holden hopes will extend its 14-year reign as Australia’s best-selling car, and remains on target to produce the small Cruze sedan and hatch from early 2011 and an E85 ethanol-capable Commodore later this year.

For now, however, Holden says it needs a further 13 stop-work days to reduce stocks of the current MY10 Commodore, which introduced direct-injection technology and a downsized 3.0-litre V6 engine in September.

Holden sold 4209 Commodores in March - up 19 per cent on the same month last year – and Commodore sales in the first quarter of 2010 were up by 14 per cent.

Marking a return to Holden tradition of releasing an updated Commodore every year for the first time since the VE emerged in 2006, the cosmetically enhanced MY11 version should replace it after about 12 months on sale in September.

Left: Holden chairman and managing director Mike Devereux.



“Ahead of updating our locally produced Commodore range later this year, we need to prepare for a smooth run-out of the current model within the plant,” said Holden spokesman Jonathan Rose.

“To do this, we have been working with the union to balance short-term manufacturing plans that will allow us to taper production of the current range, before ramping up with the new model.

“This afternoon, Holden and the unions agreed that as a result of this plan, there will be a need for 13 non-production days across July and August. These will be taken as a combination of RDOs and market response days,” said Mr Rose.

As part of the deal struck with the union instead of a two-week shutdown in July, production at Elizabeth will cease for the first week that month, immediately ahead of eight shortened four-day production weeks through August.

Holden’s Adelaide operations currently operate on one-shift, with two crews alternating on a one week on and one week off basis on reduced pay, in an arrangement that allowed Holden to avoid major job cuts during the global financial and automotive industry slump.

While vehicle production at Elizabeth remains around 340 cars a day with a one-shift/two-crew roster, Holden’s Port Melbourne engine plant returned to a two-shift operation last November following increased demand for its global V6 overseas.

Holden recently redeployed four engineering staff from South Australia and sought a further 10 workers for six-month contract positions at its $400 million engine shop, which is now making up to 480 V6s a day – around half of its capacity.

The announcement to cut production days at Elizabeth comes a day after new chairman and managing director Mike Devereux said Holden was trading profitably this year after its “horrific” $210.6 million loss in 2009 and would continue to do so without a significant upswing in exports.

In his first media address, Mr Devereux also said Holden hoped to reinstate the second shift it axed a year ago at the Elizabeth factory north of Adelaide after Middle East Commodore sales stalled and Holden’s US export program was killed along with the Pontiac brand as part of GM’s restructure.

“It is totally our intention to bring back the second shift,” said the Holden boss yesterday. “We are not ready to do that right now. The market is making some gains. We like where we are, but what you have got to remember is we are starting from a long way back.

“We had an unprecedented horrific year, and we had an unprecedented horrific year as an industry – not just Australia.

“When we are in a position to increase volume and ship cars, we are going to do that, but we are going to be talking with our union before we talk with anybody else, and we are not in a position to do that today.

“We have had a strong start to 2010. We are not claiming victory, but we expect 2010 to be a very good year for Holden, and when we post our results next year, hopefully they will not need any explaining."