Worst fears for Mitsubishi Workers in Adelaide not Realised
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http://www.theaustralian.news.com.au...5E2702,00.html
Leaders find hope in plant's closure
By Neil McDonald and Michael McGuire
May 22, 2004
SOUTH Australian Premier Mike Rann said yesterday he had "extraordinary mixed feelings" about Mitsubishi's decision to close the Lonsdale engine plant.
"On one hand, there has been an extraordinary battle to save and secure jobs," Mr Rann said. "(But) our hearts go out to the workers at Lonsdale and their families."
But Federal Finance Minister Nick Minchin said all South Australians "should breathe a sigh of relief".
"This should be seen as a good news day," he said.
"We're sorry the decision had to be made to close that facility but if it means this operation here (at Tonsley Park) is strengthened and has a longer-term future, then we hope it will amount to a brighter future for everybody."
But according to a leading Melbourne auto analyst, Mitsubishi still has some hurdles to cross before its manufacturing future is secure.
"The sword of Damocles is still hanging over their head," according to Tony Robinson, auto analyst with the FACTS industry group.
"I wouldn't say you could walk away from events today with any reassurance."
Mr Robinson said Mitsubishi had been savaged for so long that it would need a clear brand-building strategy to help with its revival in the minds of buyers and the big-volume leasing industry, which makes up the bulk of new car purchases in the country.
However, other industry bodies, the Federal Chamber of Automotive Industries and the Federation of Automotive Products Manufacturers, believe the decision to continue manufacturing at Tonsley Park was a good outcome.
Holden, the largest auto employer in Adelaide, also welcomed the news.
Chairman and chief executive Denny Mooney said Holden "had no immediate hiring plans" for excess Mitsubishi staff.
"We also recognise that Mitsubishi's engine operations would have many talented people and will certainly take that into account when future needs arise."
FAPM chief executive officer Peter Upton said the company's commitment to manufacturing was good for the component supply industry in South Australia and Victoria.
"The entire component sector employs 27,000 people directly, and indirectly probably more," he said.
With one car-maker out of the equation there would have been some pain, he said.
"However there are very few component suppliers that were solely dependent on Mitsubishi," he said.
However, 40 per cent of business for one Victorian-based company was with Mitsubishi but Mr Upton would not confirm which company it was.
Leaders find hope in plant's closure
By Neil McDonald and Michael McGuire
May 22, 2004
SOUTH Australian Premier Mike Rann said yesterday he had "extraordinary mixed feelings" about Mitsubishi's decision to close the Lonsdale engine plant.
"On one hand, there has been an extraordinary battle to save and secure jobs," Mr Rann said. "(But) our hearts go out to the workers at Lonsdale and their families."
But Federal Finance Minister Nick Minchin said all South Australians "should breathe a sigh of relief".
"This should be seen as a good news day," he said.
"We're sorry the decision had to be made to close that facility but if it means this operation here (at Tonsley Park) is strengthened and has a longer-term future, then we hope it will amount to a brighter future for everybody."
But according to a leading Melbourne auto analyst, Mitsubishi still has some hurdles to cross before its manufacturing future is secure.
"The sword of Damocles is still hanging over their head," according to Tony Robinson, auto analyst with the FACTS industry group.
"I wouldn't say you could walk away from events today with any reassurance."
Mr Robinson said Mitsubishi had been savaged for so long that it would need a clear brand-building strategy to help with its revival in the minds of buyers and the big-volume leasing industry, which makes up the bulk of new car purchases in the country.
However, other industry bodies, the Federal Chamber of Automotive Industries and the Federation of Automotive Products Manufacturers, believe the decision to continue manufacturing at Tonsley Park was a good outcome.
Holden, the largest auto employer in Adelaide, also welcomed the news.
Chairman and chief executive Denny Mooney said Holden "had no immediate hiring plans" for excess Mitsubishi staff.
"We also recognise that Mitsubishi's engine operations would have many talented people and will certainly take that into account when future needs arise."
FAPM chief executive officer Peter Upton said the company's commitment to manufacturing was good for the component supply industry in South Australia and Victoria.
"The entire component sector employs 27,000 people directly, and indirectly probably more," he said.
With one car-maker out of the equation there would have been some pain, he said.
"However there are very few component suppliers that were solely dependent on Mitsubishi," he said.
However, 40 per cent of business for one Victorian-based company was with Mitsubishi but Mr Upton would not confirm which company it was.
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Not great news but the closure of the main plant would have been devastating. As is Adelaide should be able to absorb 700 redundancies.
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