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Holden chief predicts car prices will rise
The Australian market is too competitive for its own good, says Gerry DorizasGerry Dorizas, the latest occupant of the MD's chair at Fishermans Bend, believes Aussie new-car buyers have had it good for too long.
After five weeks in the country Dorizas has determined that the prices of volume-selling cars here are lower than in Germany – yet our cost of living is higher.
"That is not sustainable," the Holden boss told journalists at a media function last night. According to Dorizas, car importers are buying market share, and in this they're being ably assisted by their respective dealer networks. It's great for the consumer, but can't last forever – not if those same car companies want to remain viable.
"I believe that [prices] will go up at some particular time," he stated. Holden is not one of the brands affected, the Holden executive says.
"Thank God, our sales are good."
Dorizas, a very well travelled man, brings a fresh pair of eyes to the Australian market. He has served in the Greek defence forces, but was actually born in Japan to Greek parents. His sociology major was undertaken in the USA and he has worked in both Japan and India. In the past Dorizas has been employed by Fiat, Hyundai and Volkswagen. His background places him at odds with the sort of executive who has previously risen through the ranks at GM to occupy the MD's position at Holden.
Dorizas admits he is "not a GM person."
"My first introduction to GM is Holden," he said. It's an introduction that is timely, for a bloke with no exposure to manufacturing and a company that has already committed to closing down its local production facilities within three years.
"It's sad that globalisation is hitting everything," Dorizas said, placing the company's migration to full-line importer in a specific market-driven context. "You come out with certain wounds... globalisation eats its kids..."
Globalisation is a catch-all name for changes rippling through the industry; changes that Dorizas describes as "evolution."
"It's the way the world works today," he also observed, before praising the local workforce at the Elizabeth plant as "proud people" who were "motivated."
Asked whether he felt confronted by the loss of jobs once the plant closes, Dorizas volunteered an anecdote from his past in parallel with what's happening at Holden.
"I had to fire 70 per cent of the company," he said of working for Fiat back in 2005.
If there's an upside to Holden's present woes, Dorizas assured the journalists attending, it was that GM had now "refocused attention on Australia."
GM, in the interlude since being reborn out of the ashes of Chapter 11 bankruptcy, had been fixated with the Chinese market in our region, Dorizas hinted. The fast-growing Asian market is certainly credited with keeping American brand Buick alive, but GM has neglected Holden and the Australian market. That is set to change now, however, with GM's Consolidated International Operations "lobbying" on Holden's behalf.
Dorizas didn't spell out precisely how that would help Holden in the months and years ahead, saying merely that there has been "progress in the last three months we haven't seen [during] the past 10 years," but it's likely a renewed product strategy for Holden is at the centre of GMIO's efforts.
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Written byKen Gratton
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Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
If the price does not contain the notation that it is "Drive Away", the price may not include additional costs, such as stamp duty and other government charges.
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