Monthly Archives: December 2013

Demise of GMH in Oz

The Auto Industry – Holden Closing

Holden Monaro
I think the capitalists do not understand the difference between competition and over-competition.
Gideon Haigh, the sports writer , recently wrote a book on the car industry in Australia.
I am pretty sure he said that there are 350 new model cars for sale in Australia today.
It is too many.
It is like marriage celebrants – 2000 would be plenty for Australia – with tons of competition – yet they have appointed 10,500 !! How can one sustain skills with such bitter undercutting competition –
What if you made every car a taxi – increasing competition – disaster!!
No wonder Holden has gone under.
Limited Capitalism works in limited arenas, with strict regulation. Like a game of Rugby League – the competition is fierce – but the regulator (the referee) has to be tough, alert, transparent and just. The competition does not work without the regulator. And it does not work if there are a hundred teams in the competition. For crying out loud we need good government as well.

Gideon Haigh’s Book