Earlier this year the rest of the world watched as America pumped over twenty billion dollars into General Motors.

In response, fellow US blogger VanSantos asked last December;

Let me ask you this.  Why should the American public provide a bailout when the companies cannot run their business?


It seemed Americans, along with the rest of the world were left scratching their heads wondering how pumping money into a company that failed to turn over a profit selling products nobody wanted, would somehow make it profitable.

Thirty somethin billion dollars later GM finally declared bankruptcy and was eventually bought out by the government. The point here being nothing changed. Executives walked off with the thirty billion and GM went bankrupt anyway.

Imagine then my surprise when last weekend I read about the Rudd governments secret $200 million dollar bailout of Australia’s Holden.

Amidst the GM storm in the US we were repeatedly assured that Holden was relatively immune from any of the fallout. Back in February Holden chairman Mark Reuss assured Australians that

The company and its 6000 workers in Melbourne and Adelaide, a fully-owned subsidiary of General Motors in the US, had a strong and viable future.


Strong and viable? Well that sounds reassuring.

Holden last posted a profit back in 2004 when they made $300 million in the green. In 2003 they made $285 million and in 2002, $256 million.

So what did Holden do with all this profit?

Continue to pump out their beloved Commodore.

‘Alright, we’ve been beating this dead horse for what feels like decades, anyone got any new ideas?’

‘…shiny new gearknob?’

‘anyone got any other ideas?’

‘…’

‘…alright make it happen. Send out the press releases we’ll call it the Holden Commodore Excel Clubsport Futura’

Since 2004 the company has posted record losses.

2005: $144 million loss

2006: $146 million loss

2007: $6 million loss

2008: $72 million loss

This promising balance sheet didn’t deter the government though:

CAR maker Holden has received a $200 million lifeline from the Federal Government as it battles the economic meltdown and an alarming sales slump.

Holden sought the secret line of credit – only just made public following inquiries – after the decision of Barack Obama’s US Government to bail out its stricken parent.


Apart from lying to us that everything was fine, Mark Reuss also had the balls to come out in February and announce that

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.


Well that’s great Reuss, but where the f. were these ideas back in 2004 when you guys were actually viable? ‘OH CRAP WE’VE GOT NO MONEY – Quick we need to re-invent ourselves!’ is not a viable business plan.

The shameful $200 million bailout is designed to help bolster Holden’s exports of the cars nobody wants to buy here. You know because Asians and Europeans are going to start buying Commodores in the droves if given the chance. It’s not like they don’t have any auto competition over there already.

What’s really shameful though is that this $200 million is on top of an existing minimum of $179 million that has already been given to Holden to come up with a green car. Seeing as nobody’s heard anything since the money was handed over it’s probably safe to assume once again the executives have just pocketed it.

‘Hi, this is the government. We lent you $179 million to build a green car, where the hell is it?’

‘Oh crap! I mean uh… everything’s coming along nicely. We’re just putting the finishing touches on it now’

‘Really? We’re going to need more details then that.’

‘Well, we’re about to re-release the 2005 Commodore as a GREEN car!’

‘…you spent 179 million dollars on re-releasing one of your old models?!?’

‘Well yes, but this time we used green paint. It’s the all-new Holden green car!’

‘Is this some kind of joke? Seriously what the crap did you do with all our money?!?’

‘…uh, wanna buy some green paint?’

Holden are outdated and the era of the overpriced sedan is over. Just like the fruitless green car (which ironically was the same excuse GM used to demand money) we’re not going to see anything made of this recent bailout either.

The European and Asian car markets are fiercely competitive and honestly there just isn’t any room for our locally produced crap.

‘Hey you, chek out mai nu ca! It got beefy weer engine, shynee gearsteek and eighteen stacka cee-dee playar!’

Yeah not happening.

As I’ve noted before, auto innovation in Australia is largely dead and we need to let go of companies who have nobody to blame but themselves. The same tired arguments about ‘essential industry’ and ‘too big to fail’ are being bandied about just as they were in the US and sadly it seems we’ve learnt nothing.

Holden will fail, it’s only a matter of time. Frankly I’d appreciate you morons running the country to not waste any more of my taxpayer dollars propping it up.

Related posts that might interest you:

1. Producer Greg Smith sues the internet for 40 million
2. $11.5 million for a security council seat? Get real Rudd.