The 2009 Chevrolet Caprice SS, sold in the Middle East but made in Australia.
I came across a 2017 interview with former Holden chairman Peter Hanenberger, who was in charge when the company had its last number-one salesâ position in Australia. His words are prescient and everything he said then still applies today.
He spent over four and a half decades at GM so he knows the company better than most. Since he departed in 2003 he had seven successors at the time of the interview; and I believe there have been a couple more since.
A few interesting quotes.
âItâs [now] a very short-sighted company.â
It feels like it. The sort of retreating itâs done, the dismantling of global operations, and the failure to see how global platforms can achieve economies of scale is something only a company beholden to quarterly stock price results will do. And it doesnât help its longevity.
Even Holden, which looked like it was going to simply depart the passenger-car sector at the end of last year before a full withdrawal now, tells us that there doesnât appear to be a long-term plan in place that the US management is committed to. Not long ago they were going on about the two dozen models they planned to launch to field a competitive line-up.
âFor me General Motors was a global player. Today General Motors is shrinking to an American company with no foresight, which is in very bad shape, which has missed the market.â
Remember Hanenberger said this in 2017, when it still had presences in many Asian countries. In 2020 it very much looks like GM will be in the Americas (where it still fields reasonably complete line-ups, although God knows if they have anything in the pipeline to replace the existing models) and China. Russia, India, Australia, New Zealand and Thailand are gone or going, and western Europe went in 2017 before the interview.
âMaybe it fits into the vision of Trump; America first. But how the world is going to work also in the future is not because of America first and America only. Itâs global. I think there will be no GM in the near-future.â
Everyone else is desperate to do tie-ups while GM retreats. I think GM will still be around but itâll be a Chinese firm.
âI couldnât give a shit what they thought in America.â
I donât mean this as an anti-American quote, but I see it as a dig against bean counters (whatever their nationality) fixated on the short term and not motorheads who know their sector well.
âFor me Holden didnât have enough product, and the second one [priority] was I wanted to get these cars they had into export. For me it was very clear the products they had could be exported and they should go on to export.â
You saw the failure of this in the early 2010s when Holden failed to keep its Middle Eastern deals, and the US models returned. It could have been so different, though I realize GM was very cash-strapped when they needed the US taxpayer to bail them out.
Bruce Newton, who wrote the piece, says that the Middle East was worth up to 40,000 units per annum, with A$10,000 profit per car. It cost Holden A$20 million to develop them for left-hand drive. Iâd have held on to that sort of opportunity for dear life.
âThere was nothing going on that was creative towards the future of Holden as in Australia, New Zealand and toward the export market. They just neglected this whole thing.â
That was Hanenberger when he visited his old workplace in 2006. With product development cycles the way they are, itâs no wonder they were so ill placed when the Middle Eastern markets lost interest in the VE Commodore and WM Caprice (as the Chevrolet Lumina and Caprice), and China in the Buick Park Avenue.
Itâs an interesting interview and perhaps one of the best post mortems for Holden, even if it wasnât intended to be so three years ago.
Above: The Holden Commodore SS-V, facing its last year of manufacture.
The current wisdom appears to be that when the Holden Commodore VF leaves production in 2017, itâll be replaced by the liftback version of the Opel Insignia B. After all, the only big sedan Ford Australiaâs offering in place of the now-defunct Falcon is the liftback version of the Mondeo, a car thatâs wider, taller, and with a longer wheelbase than the supposedly larger Falcon. I think the crystal ball-gazers are wrong.
I could say that the Australian and New Zealand big car buyer is very traditional and would balk at the idea of the big Holden being a hatch. But thatâs not the only reason. Thereâs a bigger one: China.
Above: GM currently makes the Opel Insignia A-based Buick Regal in China, after initially beginning with German production.
The trouble with the graphic is that the only thing it got right was that two women were killed. Sweden wasnât having a referendum on whether to leave the EU, it was about whether it should adopt the euro. The closest British parallel would have been when then-PM John Major negotiated the Maastricht opt-out in 1991. It also claimed that the polls were for leaving; notwithstanding that that wasnât what the Swedes were voting for, the polls for and against adopting the euro were roughly neck in neck, though the wisdom was that the pro-euro camp would win. By the weekend, the result was that Sweden would keep the krona.
When I argued with some pro-Brexiters about this, they, like most pecksniffians, demanded I check my facts. I didnât have to: I have a memory that goes back further than one month, and unlike them, I know what went on in their own backyard because, in 2003, I kept my eyes open.
I should point out that I am not summarizing all Brexiters as dimwitted Britons who wanted Johnny Foreigner to go home. I count among my closest friends someone who voted leave, and for very substantial, well thought-out reasons. He felt that the European Union had become an unwieldy bureaucracy which benefited Britain little, and while I felt the benefits outweighed the detriments, I respect his opinion and his vote. At least it was considered, and at least it wasnât one that was based on the ramblings and rants of Farage, Johnson, Gove et al.
Appealing to nationalism, as the likes of Farage did, is a cheap trick in politics: it stirs a wave of nostalgia, and people might love chanting at how great their nation is, but it doesnât address the core issues that put them into the poo to begin with. Of course the UK has a great deal to be proud of; but like many countries (including ours) the globalist technocratic agenda are what have made things untenable for a growing part of the population. Itâs why real wages havenât risen yet certain corporations profit aplenty; itâs why we work more hours today than we ever did, despite futurists of a generation ago predicting all this leisure time that we would all have thanks to automation.
But is retreat the right thing to do? The remain camp believes that it wasnât: to influence Europe you must be in Europe. It wasnât that long ago that not being in Europe was fatal to British exportsâthe failure of the British motor industry, for instance, was in part due to its late recognition that the UK needed to be part of the EEC or, at least, produce vehicles there. Globalizationâs positives should be the free movement of people and of capital; and economic union to permit that greater freedom seems a sensible thing to pursue, not to run away from. The trick is how to make this work for everyday people, the growing number who are impacted by globalist forces; once there were few, now few escape them. It is, then, the role of government to either protect those who are most vulnerable, to champion (either through private enterprise or on its own accord) real innovation and industry that can create jobs, and to cut through the BS where both public and private enterprise simply reinvent the wheel from time to time, putting lipstick on the bulldog.
I am ambivalent about it because Iâve seen our own governments, National and Labour, be particularly weak when it comes to dealing with globalization, succumbing to foreign takeovers and allowing the little guy to be run over. The deals havenât been good for New Zealand in many respects, a small country that believes in its place in the first world but which can be deluded about this very fact. Our economy just isnât that solid to take it on the chin. Look at our banks, mostly foreign-owned and more unreliable than ever: remember how 40 years ago cheques would take 24 hours to clear? Yet now our computerized systems take three to five working days? Insiders tell me this is the consequence of less reliable Australian systems being foisted upon us; so much so that we have a wire transfer that has been taking weeks, and no one knows where the money has gone. Just how do you misplace tens of thousands of dollars? Why do we assume Australian bankers are smart enough to answer? And those who question such agenda donât get much truck in a media landscape also dominated by foreigners: Iâm looking at one newspaper publishing group at the least. The ways of the big countries are not always the bestâyet somehow the powers-that-be in this country have been hoodwinked by this consistently since 1984. I can’t understand it, and my initial reaction when there is such a lack of logic is to follow the money.
Brexit has made me refine my thinking: I might not like a system where New Zealandâs the little player that doesnât benefit from a level playing field, but at the same time I believe we need to find ways to influence the globalist game for the better. We love looking at Scandinavian countries because of their comparable size. They may have higher taxes but at the same time they donât seem to balk at innovation for the greater good; they believe in the freedom of movement of capital and of people, and, despite their general humility, they actually arenât afraid of creating global companies that take on the rest of the world. Look at Vattenfall or Statoil. We might not like Statoil for what it wants to do to our own environment, but we do have to ask what our equivalent is. We lost our lead in hybrid cars, which we held for most of the 1980s, but itâs an example of what we can do when government and private enterprise cooperate on something that is future-oriented. Whatâs the next big thing? Is it renewable energy tech that we can export? There are companies here already doing frictionless exports, and more need to be encouraged. Government shouldnât try to create groups of them or force mergers upon them; that can be left to the market. But there needs to be a vision or a direction that we take to create a new brand for our country where people naturally think: innovation for the greater good = New Zealand. And, maybe, to go with that, a fairer version of globalization can emerge, certainly one that is not coloured by the next quarterly result demanded by Wall Street.
Yes, there is some national fervour involved here, too, but applied correctly, it wonât be false flag-waving thatâs dependent on the past. Iâm all for being proud of your country when the victories are real and measurableâlike on the sporting field. There itâs real, and itâs often about the next game or the next season: itâs future-oriented, too. With Brexit, I canât see the vision; and the most visible foreigner among this, the Turkish-American politician, Boris Johnson, hasnât communicated one that I can discern.
And maybe this confusion is the opportunity we need for New Zealand.
After the UK abandoned the Commonwealth markets in favour of one right next door, our country found new export markets, so much so that the UK accounts for 3 per cent today. Even in 1973, when it was 40 per cent, it had been falling consistently for half a decade, if I recall correctly, and the notion that Britain would reach back out toward the Empah for trade is fanciful at best.
Being someone who has enjoyed looking at world history play out through maps, ever since I discovered a book on the subject as a third former at Rongotai College, it hasnât escaped my thoughts that this is a further retreat for the UK in terms of its global influence.
So whoâs on the rise? It might be us. The centre of the global economy has been shifting eastward in recent times and weâre well placed to take advantage of it. Weâre part of the Anglosphere so we bridge the past, where it was the dominant global culture, with those trading partners who might be on the horizon. But it has to be real. Weâre nimble enough, and I canât see why weâve been so fascinated with apeing the US and the UK for so long. Once again we need to set our own direction: we have a culture thatâs ready for it with a greater sense of identity than weâve ever had. I just wonder if we have a government, local or national, courageous enough to embark on this.