James Alexander Holden
When British migrant James Alexander Holden
arrived in Adelaide in 1852, he set about establishing
a business as a leather worker and saddle-maker. In
1872 he set up a partnership with Birks, only to have
it disolved 3 years later.
Following that ill-fated
partnership, Holden decided to bring his son into the
business in 1879, and then allowed Henry Frost to join
as Junior Partner in 1885; Adolf Frost was well respected
carriage builder, and the company was soon to become
"Holden and Frost".
In 1910 Holden & Frost began trimming motor vehicles
and in 1914 they built their first one off car body
for an imported Lancia chassis. Larger contracts followed
but ironically the first major contract was for Dodge
bodies (a later competitor).
The Import Embaro On Complete Vehicles
By 1917 the Australian
government had placed an import embargo on complete
vehicles, the First World War having almost entirely
involved Britain's industry, and German U Boat Captains
were doing their best to ensure that very few cargo
ships leaving North America reached their intended destination.
These conditions, combined with the need to save valuable
cargo space, restricted imports to chassis and forced
local vehicle agents to look to local firms to provide
the bodies. In 1919 Edward Wheeldon Holden registered
"Holden's Motor Body Builders" as a separate company
specialising in car bodies.
At the time they built bodies
for Overland, Chevrolet, Durant, Hupmobile and Dodge,
and by 1923 they were producing over 12,000 bodies per
year. In 1924 "Holden's Motor Body Builders" became the sole
Australian body builder for General Motors vehicles
and had an output of over 22,000 bodies (over 11,000
for GM) in 65 different body styles.
George Rayner Hoff Designs The Famous Lion And Stone
The famous "Lion
and Stone" symbol was designed in 1928 by George Rayner
Hoff, and represented the legend of man's invention
of the wheel. It was subsequently fitted to all Holden
bodies and, although undergoing minor changes over the
years, remains to this day.
During the 'Great Depression' in 1930, production fell
from 34,000 units per year to a mere 1651 and, in 1931,
General Motors were able to buy the entire Holden's
Motor Body Builders and merge it with their North American
operation to form General Motors - Holdens.
This move
was not entirely motivated by taking advantage of the
company when it was at an all time low but was mainly
occasioned by the Australian government freezing the
currency so that money couldn't leave the country during
the depression.
The money to pay GM in the United States for the previously
imported chassis was trapped in Australia and so was
used to finance the buy out which in part took the form
of swapping the ordinary shares held by 1550 Australian
shareholders in Holdens Motor Body Builders for 561,000
6% 1 pound preference shares (ie 6% of the value of
their shares each year) in the new company.
This made the paid up capital of the new company 561,000
pounds Australian capital (37% of the total) and 965,800
pound U.S. capital (63% of the total).
They Just Won't Do
As They're Told
In addition there
was tension between the Australian operation and the
United States with management in the United States complaining
"Amazing people these Australians; they just won't do
as they're told" (Inness Randolph head of General Motors
Australia to Larry Hartnett in 1929) and a merger/takeover
was also a way to solve this little problem.
In 1934 Larry Hartnett (later Sir Laurence Hartnett)
was sent to Australia by GM as Managing Director of
the Australian company with a directive to either make
it profitable or close it down.
Fortunately Hartnett
respected the resourceful nature of the Australian operation
and stated "The economies achieved by Holden's at Woodville
put them, in many ways, years ahead of the rest of the
world in manufacturing techniques. The resourcefulness
and initiative of the Australians in this industry is
beyond praise."
By 1935 the world economy had strengthened and under
the leadership of Larry Hartnett GM-H lifted production
to 23,129 bodies and a profit of 650,000 pounds. The
company also introduced the "Sloper" to the world
which was the fore runner of the hatchback and led
the rest of the world in producing the first all
steel bodies.
Sir Laurence Hartnett Makes Plans For An All Australian Car
In 1936 Larry Hartnett began planning
the complete production of a "wholly Australian
car",
however another World War intervened, with the (Menzies)
government of the time putting these plans on hold.
After the war the Government asked for proposals from
any local company for production of a complete car
- and General Motors Holdens were the only company
to reply.
On September 20, 1944 Sir Laurence Hartnett and Mr Jack
Horn of General Motors - Holdens made a presentation
entitled "Australia - GM's Performance and Results -
Manufacture of Complete Motor-Cars in Australia" to
the Executive Post War Planning Committee of General
Motors in New York. This meeting gained approval in
principal for GM-H to commence the process of designing
and building an Australian car.
Selling It To Detroit
A major production which was rehearsed for 3 weeks in
New York and involved 18 stenographers, 7 photographers
and photographic reproduction men, 2 statisticians plus
experts from GM finance, materials and manufacturing
divisions all with the aim of convincing the committee
of approving the project in principal, it was finally
approved in November 1944.
But it almost did not eventuate, with the US deciding
that it would not invest in Australia (despite making
hefty profits from its Australian operation) and only
when the Commonwealth Bank came up with £2,500,000
pounds and the Bank of Adelaide came up with the balance
of £500,000 pounds did the project finally get
off the ground.
The Release Of The 48/215
When the first Holden (designated the
48/215) went on sale in 1948, the list
price was the equivalent of $1330. To this the buyer
had to add 'on road' charges including registration
and insurance plus $136 in sales tax. Sales tax has
played a big part in the price of Holdens through the
years.
It has been as low as 10 per cent and as high
as 40 per cent, and in 1990, a new high of 50 per cent
was briefly imposed on the Caprice because it was priced
above a 'luxury car' limit set by the federal government.
Inflation too has played a big part.
When the
VN Commodore was launched in 1988 exactly four decades after the
first Holden - it cost $20,014 including sales tax.
That was nearly 14 times as expensive as a 1948 Holden,
but by 1988 the average male wage had risen to $491.
Statistically speaking, that meant that a worker needed
to complete 41 weeks on the job to buy a new VN. In
1948 the average male earned $15.60 and would have had
to work around 94 weeks to pay the tax-inclusive price
of a new Holden. It's not quite that simple, of course.
Car Ownership Becomes More Affordable
These wage figures are gross and the average worker
now pays a higher percentage of income tax than in 1948.
Then again, the average working week is now shorter
and credit is easier to obtain, making car ownership
more accessible to a greater number of people. Two-income
households are also much more common. Even if the woman
of 1948 was holding down a similar job to her husband,
she would be getting around 25 per cent less money.
The
VP Commodore hit the market with the base sedan
priced at $23,992 - an unimaginable figure by 1948 standards
but highly competitive in 1991. Comparatively speaking,
the Hoiden was never cheaper than in the early 19708,
when an average wage-earner could buy a new Hoiden with
just 25 weekly pay packets.
Through all the fluctuations,
the cars themselves have become more sophisticated.
If you compare the Holdens of the 1940s, '50s, '60s
or '70s with today's models, an incredible amount of
equipment is now standard that was then not even optional.
As well as a plethora of luxury items, the modern Commodore
has countless mechanical advantages and a higher standard
of performance, handling and comfort. It is faster,
quieter, more ergonomically efficient, smoother, roomier,
better equipped, more robust, easier to drive and harder
to steal.
Australia's Favourite Car
Most importantly of all, today's car is considerably
safer on two levels: keeping you out of an accident
and protecting you if you are unfortunate enough to
be in one. And although early Holdens were considered
advanced in their day, a car which required a service
and oil change every 1600 kilometres just wouldn't sell
today. Today, almost every generation X Australian would
have owned or driven a Holden at some time and the company
can rightfully claim to be 'Australia's Favourite Car'.
