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Old 12-11-2001, 16:00   #1 (permalink)
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mad Mitsubishi Motors wants Australian taxpayers to contribute $140 million

Give 'em nothing I reckon. Why should the Government bailout every car company (or airline) that goes bust. OK it will be bad news for the 3000 Mitsubishi workers (where did they get this other 20,000 figure from), but that's life. Let's all start uip companies and in a few months time when they are struggling to stay afloat we'll blackmail the Govt into handing over a big wad of cash so we can keep cruising around in our posh TL50s.

NOT.:fmad::fmad::fmad::fmad:



From Sydney Morning Herald

Mitsubishi's threat: $140m or we close

By Michael Millett, Herald Correspondent in Tokyo

The international car maker Mitsubishi Motors wants Australian taxpayers to contribute an extra $140 million to guarantee the future of its struggling local subsidiary as one of Australia's four vehicle manufacturers.

In what is looming as one of the first domestic policy tests for the returned Federal Government, Mitsubishi Motors Australia confirmed yesterday it had lodged a submission with the Government seeking its support for a multi-million-dollar upgrade of its Adelaide production lines.

While the terms of the submission are confidential, it is understood the extra help Tokyo and Adelaide require for committing to a retooling would amount to about $140 million.

This is separate from about $200 million the Federal Government has already promised Mitsubishi for new investment projects under its new car assistance plan.

It would come on top of billions of dollars already spent by successive federal and state administrations over past decades trying to protect local jobs in the dwindling Australian car industry.

The extra money is to help the company meet the huge upfront cost of new production processes to enable Adelaide to produce a replacement model for the aging Magna.

It is also designed to help set up Adelaide as a global production centre, producing export models for other parts of the sprawling DaimlerChrysler/Mitsubishi empire.

The Stuttgart-based DaimlerChrysler, now the world's third-biggest car maker, effectively runs Mitsubishi after acquiring a 37 per cent stake last year.

Mitsubishi sources in Tokyo said the submission put the cost of the upgrade at $700 million.

Given Mitsubishi's current problems - the Tokyo-based parent made a record loss last year and is being rebuilt by its new German owner - the company had neither the means nor the inclination to foot the entire bill on its own, the sources said.

The company is also wary of the Australian market, as car tariffs will drop from 15 to 10 per cent at the end of 2004.

Mitsubishi is pressing for a quick decision. Although the new car will not be built until 2005, the company needs the money from next year to begin upgrading its assembly lines.

It is understood key Mitsubishi executives have warned the Government that they cannot make a final decision on how Adelaide fits into its new global manufacturing plans until the issue is sorted out.

It also wants clear indications from its Australian subsidiary that it is about to end its run of losses and can trade comfortably in the black.

A spokesman for the new Industry Minister, Ian Macfarlane, said no comment would be made until the Government had dealt with the issue.

The timing and nature of the request put the new cabinet in a bind. Any new money would run counter to the Government's post-election policy of protecting the Budget surplus.

The Government has lobbied frenetically behind the scenes to save Adelaide - not only for its own electoral survival, but for that of the South Australian Government.

The last Liberal state administration must go to the polls early next year and is desperate to have the issue resolved by then.

More than 3000 workers are employed at the two Adelaide plants. Mitsubishi Australia's managing director, Tom Phillips, says 20,000 jobs around Australia are indirectly linked to the plants.
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Old 12-11-2001, 16:11   #2 (permalink)
 
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Man thats alot of money. I'd hate to see all those folks out of work. I say give them the money with 0% interest and have them pay it back once they are back in profit.
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Old 12-11-2001, 16:26   #3 (permalink)
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Well really they have no other choice, 3000 direct and 20000 indirect jobs are definately worth saving. We put more than that into foreign aid so I see no issue with helping ourselves out instead.

The loss of that factory would have dire consequences for the region with the loss of 3000 wage earners/spenders.

The Magna is a gay car (I outa know I owned one once) but its not the product that is the issue but the people which is infinitely more important.
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Old 12-11-2001, 16:29   #4 (permalink)
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25,000 jobs is worth investment from the Gov ... Holden got assistance for the Engine plant, maybe Mistu could get the same tax help ...

(Oh, and if this were Ford asking for help, I think the responses would be kinda different, don't you think?)
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Old 12-11-2001, 17:03   #5 (permalink)
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Here we go again.

Givem all the assistance but give us consumer protection.


we want lemon laws
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Old 12-11-2001, 17:06   #6 (permalink)
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Quote:
Originally posted by Hobbes
(Oh, and if this were Ford asking for help, I think the responses would be kinda different, don't you think?)
Good point Hobbes.
I think it's worth it. The Oz auto industry is one of the best in the world considering what they have to work with.
Many families and contributing tax payers would be out of the loop if Mitsu closed.
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Old 12-11-2001, 17:07   #7 (permalink)
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we want lemon laws
Too true. As well as a revised tariff situation. Bloody flat earth economists suck.
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Old 12-11-2001, 17:19   #8 (permalink)
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Re: Mitsubishi Motors wants Australian taxpayers to contribute $140 million

Quote:
Originally posted by Falchoon
[B....... set up Adelaide as a global production centre, producing export models for other parts of the sprawling DaimlerChrysler/Mitsubishi empire......[/B]
Not with you on this one Falchoon.

I agree with what the others have said. It sounds like a pretty sound investment to me. I'd much rather the Govt. invest in Australia's future manufacturing industry than to wave it all goodbuy overseas.
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Old 12-11-2001, 18:07   #9 (permalink)
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Re: Re: Mitsubishi Motors wants Australian taxpayers to contribute $140 million

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Originally posted by RAPTOR


Not with you on this one Falchoon.

I agree with what the others have said. It sounds like a pretty sound investment to me. I'd much rather the Govt. invest in Australia's future manufacturing industry than to wave it all goodbuy overseas.
But where do you stop handing out money to businesses doing it tough? Our taxes (and other Govt money) aren't a bottomless pit you know.
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Old 12-11-2001, 18:21   #10 (permalink)
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When the business isn't worth investing in and obviously will never be able to stand on its own feet. The Aussie auto industry (all manufacturers) are a good bet, especially if that investment is aimed at making them a regional/global production centre with export volume. In turn supporting supplier industries, the regions that they operate in etc.

I know the Govt coffers aren't bottomless - hell it's my money too - but sometimes it's worth it. You reckon there aren't other countries out there that would pay to have these industries in their countries? We may not like how the game is played but if we don't play we loose!
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