I have just come back from the U.S. and I suspect that GM, Ford and Chrysler are going to have trouble surviving there as well. They also seem to be hell bent on producing larger cars which are difficult to sell, while on the street there is an escalating number of small imported vehicles.

The locally made Cruze diesel should be a winner with its excellent fuel consumption. Why GM have continued with the Commodore is a bit of a mystery. The new Cruze has more room and much more power than some previous Commodores.

Methinks that perhaps GM have already made a longer term decision
on this one. Already we are being prepared for the switch, with
the role out of advertisements. Its no more the Holden Astra, but
now the Opel Astra from Germany. etc.

Unfortunately VK3AUU the economics of production in Oz, & the US, plus the minimal cost of international freight, mean that no one can produce small, cheep cars in these places, & make a profit. It costs more to get a car from Adelaide to Sydney, than from Korea.

Look a little further & you'll find that it was only government purchases that kept the Holden, & Falcon in production. We can only afford them cheep, second hand.

However we must go further than Malcolm's analysis.

The big question is should we keep South Australia open at all? It makes sense to close Adelaide, & just allow the minor fishing & wine industry to continue, as other rural industries exist elsewhere. To continue to support this silly little outpost with huge subsidies is ridiculous.

The place can only exist while drawing a vast amount of taxes, & water, from more prosperous, & viable states. Much better to use the water, & keep the taxes where they will do most good, for most people.

Close the car industry, & stop building subs there, & just let the place die would be the most financially viable for all of us, in the long term.

GMH has just hired 3000 workers from Hewlet packard, to install computer driven equipment on the factory floor.
So i do not think GMH are going any place soon.

A relative has just traded a late model Renault for a new Cruze so they must be doing something right. Apart from car subsidies Canberra was going to provide billions for SA defence contracting, notably air warfare destroyers and new diesel submarines to replace the last batch of duds.

When a talented footballer loses everything to gambling they say stick to what you are good at. What SA has is at least a third of the world's cheap uranium. They should exploit that to the hilt with mining, enrichment and electricity generation including interstate export in all weathers. The underemployed in the northern Adelaide suburbs could move to new well paying jobs in those industries. Canberra could find the money to kick start an SA nuclear industry by mothballing the subs for example. As a bonus people will buy Holdens subsidy or not.

I believe that the real future is that all governments are going to be
pushed for money to do the most important things like subsidising
food production, hospitals etc.

Take note of what is happening in Europe and the US.
I think it would be just too optimistic to believe we will not get a taste of that.

The writing is on the wall in Canberra this week.
I doubt that the motor industry will ever see another government dollar.

579, Hewlett Packard never had anything like 3000 employees.
or did you mean in the US ?

http://www.abc.net.au/news/2012-11-02/holden-to-cut-more-jobs/4350116

oh dear.