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Old 08-04-2002, 19:58   #1 (permalink)
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Double the import duty on FWDs

http://www.dailytelegraph.news.com.a...55E704,00.html

HOLDEN has called for the tariff on four-wheel-drive vehicles to be doubled to match passenger vehicles, a move that would make them more expensive in the marketplace.

Managing director Peter Hanenberger believes the present 5 per cent rate – effectively a loophole linked to their past rural industry use – is unfair to local passenger vehicles.

Mr Hanenberger told the Committee for Economic Development of Australia on Friday that the tariff on four-wheel-drives should be 10 per cent, the same as for imported passenger vehicles.

He added to his remarks yesterday in an interview with the Nine Network's Business Sunday, where he called for a single car industry union to simplify negotiations.

Sales of four-wheel-drive vehicles have soared over the past decade, especially with the emergence of the so-called "soft roader" category.

The 406,966 FWDs sold in the first half of 2002 is more than were sold in all 1991 and 19 per cent up on the same period last year.

Holden is developing a local FWD derivative of the Commodore and hopes to become General Motors' Asian centre for expertise in FWD development.

On tariff policy generally, Mr Hanenberger said the Australian car industry had emerged from the era of protection stronger and more competitive but warned further cuts to tariffs would damage future prosperity.

Mr Hanenberger said exports like the Monaro had put Australia on the world motoring stage as a flexible and cost-efficient producer but warned more work had to be done to maintain the momentum.

"We can be the healed child and not the sick child," he said.

"Industries cannot expect to be the recipient of a never-ending flow of government funding for their survival.

"Such assistance is akin to industrial life support and the Australian automobile industry is certainly in no such dire condition."

But Mr Hanenberger said it would be foolish to cut tariffs further from the 10 per cent they would reach in 2005 unless other countries lowered their levels of protection.

"We simply do not believe that it is in Australia's best interest to give up our remaining negotiating coin until our trading partners have demonstrated their own willingness to come to the table."

He said Holden was now well on the way to becoming a flexible, low-cost global niche producer of cars.

To achieve that, it would spend $2 billion in the next five years to lift output from 130,000 to 180,000 cars a year.

Part of that growth would come from increasing exports such as the Monaro to fill product line gaps in General Motors affiliates around the world.

Mr Hanenberger said he would have to continue a strong link with the union movement to complete Holden's aims.

He said shared commitment and a mutual understanding of goals between industry and unions was critical to future growth.

"Holden stands ready to engage in meaningful dialogue with the unions about the future of our industry, rather than taking the big stick approach," he said.

"Equally we will not tolerate any action that is illegal.

"Unions have a legitimate role in the industrial process but manufacturers may be forced into using the full extent of the law to defend ourselves if we suffer substantial damage as the result of illegal actions."
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Old 08-04-2002, 20:13   #2 (permalink)
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Well about time, it's only taken a decade or two for them to wake up to that one. Though someone should tell that journo that FWD='front wheel drive' and that he should have used the term 4WD.
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Old 08-04-2002, 21:49   #3 (permalink)
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Re: Double the import duty on FWDs

Quote:
Originally posted by Falchoon
http://www.dailytelegraph.news.com.a...55E704,00.html

HOLDEN has called for the tariff on four-wheel-drive vehicles to be doubled to match passenger vehicles, a move that would make them more expensive in the marketplace.

Managing director Peter Hanenberger believes the present 5 per cent rate – effectively a loophole linked to their past rural industry use – is unfair to local passenger vehicles.

Mr Hanenberger told the Committee for Economic Development of Australia on Friday that the tariff on four-wheel-drives should be 10 per cent, the same as for imported passenger vehicles.

He added to his remarks yesterday in an interview with the Nine Network's Business Sunday, where he called for a single car industry union to simplify negotiations.

Sales of four-wheel-drive vehicles have soared over the past decade, especially with the emergence of the so-called "soft roader" category.

The 406,966 FWDs sold in the first half of 2002 is more than were sold in all 1991 and 19 per cent up on the same period last year.

Holden is developing a local FWD derivative of the Commodore and hopes to become General Motors' Asian centre for expertise in FWD development.

On tariff policy generally, Mr Hanenberger said the Australian car industry had emerged from the era of protection stronger and more competitive but warned further cuts to tariffs would damage future prosperity.

Mr Hanenberger said exports like the Monaro had put Australia on the world motoring stage as a flexible and cost-efficient producer but warned more work had to be done to maintain the momentum.

"We can be the healed child and not the sick child," he said.

"Industries cannot expect to be the recipient of a never-ending flow of government funding for their survival.

"Such assistance is akin to industrial life support and the Australian automobile industry is certainly in no such dire condition."

But Mr Hanenberger said it would be foolish to cut tariffs further from the 10 per cent they would reach in 2005 unless other countries lowered their levels of protection.

"We simply do not believe that it is in Australia's best interest to give up our remaining negotiating coin until our trading partners have demonstrated their own willingness to come to the table."

He said Holden was now well on the way to becoming a flexible, low-cost global niche producer of cars.

To achieve that, it would spend $2 billion in the next five years to lift output from 130,000 to 180,000 cars a year.

Part of that growth would come from increasing exports such as the Monaro to fill product line gaps in General Motors affiliates around the world.

Mr Hanenberger said he would have to continue a strong link with the union movement to complete Holden's aims.

He said shared commitment and a mutual understanding of goals between industry and unions was critical to future growth.

"Holden stands ready to engage in meaningful dialogue with the unions about the future of our industry, rather than taking the big stick approach," he said.

"Equally we will not tolerate any action that is illegal.

"Unions have a legitimate role in the industrial process but manufacturers may be forced into using the full extent of the law to defend ourselves if we suffer substantial damage as the result of illegal actions."
how about pissiing off import duty all together and letting people actually decide for them selves what they want to buy, instead of forcing them into buying localy produced cars because there cheaper...
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Old 08-05-2002, 00:17   #4 (permalink)
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Quote:
Originally posted by RAPTOR
Though someone should tell that journo that FWD='front wheel drive' and that he should have used the term 4WD.
Indeed. When I saw the topic in the list I was all excited about seeing less of the dodgy cars (the ones powered by the wrong pair of wheels) on our roads.

Mind you, what's so strange about a journo who doesn't know what's what?!
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Old 08-05-2002, 02:01   #5 (permalink)
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Of course now holden has its own 4wd in development time to even up the competition.. Im sure Ford won't argue with that either (shh raptor).. 4wd do more road/bush dammage than cars, cause more accidents, use more fuel, so frankly increasing tarriff could be a very good thing if australia wanted to get:
a)lower road toll
b)lower emissions
c)better average fuel economy
d)lower trade defiset (people more likely to choose local car instead)
e)better road wear


I know I would be grinning, cause I postitively hate 4wd's, and their owners. I knew quite a few people who have been killed by them, or injured, plus most 4wd seem to be driven by very irratic and unskilled and unsafe drivers. Not all, but most.

But really 5 or 10% tarriffs are pretty dam low compared elsewhere in the world. Most heavily traff protected countries Ie places like Korea and Singapore have somewhat sick and declining manufactuerers ie Dawoo, Proton, Kia. Japan too, nissan is gone and so has mitsubishi, Subaru is part own by GM.. Once australia signs up some free trade deals with US and europe things will get pretty profitatble for Aussie industry.. if our dollar stays as low as it does anyway (which it proberly will).

I think if it was a level playing field, Ford and Holden would still do quiet well, as would Toyota and Mitsubishi but as minor players relying heavy on exports. NZ is totally tarrif free in every sense of the meaning. (no hidden compliancing charges etc). Ford and Holden still sell strongly there despite imports, and the fact that the cars they make aren't as small as some of their competitors.

10% increase for FWD cars.. hehehe that *WOULD* be interesting... Maybe it could bring back small car manufacturing to australia.
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Old 08-07-2002, 05:24   #6 (permalink)
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how do 4wd,s cause more accidents
how do they cause more road/bush damage [this is down to attitude of who ever drives them,this is regardless of wether they drive 4wd fwd rwd,4wd clubs spend alot of time puling CAR wrecks and dumped rubbish from national parks and bushland ]
lower trade defiset?there are lots of reasons for choosing 4wd,price not usually the main factor but poor resale value of some local cars is[falcon commodore]
fuel economy is not that much different
All of my mates who rode motorbikes are now dead 3hit by cars 1 by another bike 1 by a lump of wood of the back of atruck
But i don;t hate bikes or cars
and i definately don;t hate peoples for choosing what they like
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Old 08-07-2002, 07:41   #7 (permalink)
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We've already got too many small cars in this country!!!! We need more big ones (Falcons and Commodores are only considered big if you compare them to Hyundais)
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Old 08-08-2002, 04:45   #8 (permalink)
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Half the reason Comodore and Falcon have low resale is that fleet use them and flood the market with second hand vehicles...
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