Apparently, Prime Minister Morrison has:
expressed anger at General Motors’ decision to dump the Holden brand in Australia, 72 years after the first home-grown car rolled off the production line, lamenting that $2 billion of taxpayer funds had been pumped into the automotive group.
Poor booby. Clearly the Prime Minister is focused on the big stuff. You know, like seeking a distraction from any attention of his government’s ineptitude and cluelessness. Is he equally upset at the $100 billion debacle that is and will be the submarines project? Has he called out Christopher Pyne? Will there be a salary and pension clawback under a GEAR – Government Executive Accountability Regime?
But before going further, lest he or his staff be reading, a couple of points to note. Tax payer funds were not pumped into the automotive group (General Motors). They were pumped through the automotive group to the employees of the automotive group.
This is a text book demonstration of how clueless politicians are relative to the wisdom of consumers and the market. The market clearly made its mind up on the Holden product, even though the product was subsidised, as demonstrated by sales numbers. Here is a picture for those who are verbally challenged:
Don’t like the picture. Herewith from the AFR:
Holden sales have been in serious decline in Australia, in part because car buyers have shifted towards SUVs and away from the traditional sedan that Holden built its business on with models such as the Kingswood and Commodore.
So basically, the Government was subsidising a product that people did not want to buy and then got upset at the producer for stopping production of a product that people did not want.
Such thinking is standard in government who never stop producing more government even though the people don’t want it. The big difference is that General Motors did not have the legal authority and police necessary to forcibly take money from consumers and to force consumption of its cars. If only.
In January, Holden’s market share in Australia was just 3.7 per cent, with only 2641 vehicles sold. It was the 10th-ranked brand in Australia, with market leader Toyota at 20.6 per cent market share. In 2019 Holden sold just 43,176 vehicles. In its heyday in 1970, Holden was selling more than 200,000 vehicles a year.
Rather than being upset at General Motors, the Prime Minister would better serve Australian citizens if he focused his attention on removing other such subsidies across the Australian economy. Perhaps starting with the ABC.
But this would require work and focus and would reduce the opportunities to appear on television and to pump out social media content. It would also require this Government to stand for something other than keep Labor out of office.