Goodyear factory closing down

Do you work for BSTG or someone like that?

Manufacturing in all forms is copping a rough deal at the moment. Tomorrow I will be advising our customers of another price increase. Since January 1st this year there has been an average increase in the price of steel products of 47%. They forecasted 45% for the year but it looks like it may be as much as 60% or even more. Still, for what we do it's not worth the customer going overseas as they require very short lead times and absolute top quality. You can't get that from Asia.

As for Holden, the great Australian icon, I will never buy another one. Not with +60% imported content. May as well buy an imported car and be done with it. At least you know what you're getting.

I was reading that with the current high fuel prices it is causing the start of resurgence of manufacturing in the US. The cost of shipping a container from China to the US has gone from $3000 to $8000 this year (So far). This has reduced the cost advantage of manufacturing bulkier goods in china then shipping to the US.

Hopefully similar benefits will start to flow on to Australian manufacturers which will help stem the flood of job losses here.

It is too late for the poor people at the Goodyear factory, but it may offer some hope to future for them.

Louie.....

+60% imported content ! perhaps you might like to share with others just what this supposed +60% actually consists of.

Correct Louie.

DIO, Idon't know the exact parts that make up 60% imported, but it would be very close.

The high value of our currency will now make it hard for any of our manufacturing industries to compete with imports......

The (approximate) 60% imported content includes the following.

Window glass
V8 Engines - Hencho en Mexico
Transmissions in some models
Body steel
Wiring looms
Control modules imported or assembled locally from imported components . i.e. ABS, SRS, BCM's, etc.
Alternators, power steering pumps, aircon compressors, engine cooling fans, wiper motors, power door locks, power antennas, car audio components, switches and plugs
Numerous plastic covers that were once made locally
I wouldn't be supprised if the head and tail lights are made overseas now as well as they do not have Made In Australia on them any more.

Tool design was contracted to a German design studio (and done in Melbourne). A lot of the tooling was manufactured overseas, China and Malaysia I understand.

Of course there is still some great local content in there as well.

Brake components on standard range
exhaust components
fuel and brake lines
pressings
interiors (for the most part)
V6 engines
some transmissions
some escutcheons

Louie,

Krakka WORK!!!

Hahaha
Only when the boss is standing next to him
Hahaha

Cheers pesty

Nah, usually standing talking with the boss!!

Louie, I think you will not find too much of the interior made here either. Sunvisors made in Spain, used to be here. Steering wheels are cast here then sent to Thailand to be trimmed and have leather stitched on, used to be here. Dashboards used to be here, not now. Most rubber extrusions now from o/seas. blah, blah, blah. Not sure what tyres are fitted, don't think they are Bridgestones.

Cheers Krakka