Anxious wait for Holden workers in Adelaide
Anxious wait for Holden workers in Adelaide
Holden workers in Adelaide may have to wait for months rather than weeks to know the fate of the company’s Elizabeth plant.
Federal Industry Minister Ian Macfarlane inspected the production line today with Holden boss Mike Devereux and South Australian Premier Jay Weatherill.
Other state political figures including Senator Nick Xenophon and Opposition Leader Steven Marshall also tagged along.
Mr Macfarlane warned Holden’s parent company General Motors that it could take some time to find a solution.
“This is one hell of a challenge,” Mr Macfarlane said.
“One hell of a solution is required.”
“This isn’t just about cars and bolts and tyres and V8s and stuff, and things going fast, it’s about technology.”
He said he wants the company building vehicles in Australia for the next century.
“I'm not concerned about the next six months, I'm not concerned about the next three years,” he said.
“My goal is to see Australian cars built here for 100 years.”
Immediately after his tour of the plant, Mr Macfarlane entered discussions with Holden chairman Mike Devereux and South Australian Premier Jay Weatherill.
Mr Devereux declined to reveal how much extra assistance the company now required after initially securing an agreement last year for $275 million to be provided.
Holden is now thought to need close to $500 million before committing to develop and build two new car models from 2016.
"The discussions that we're going to have begin today and those discussions are likely to be ongoing," Mr Devereux said.
Mr Macfarlane said the federal government intended to press on with a review of car industry assistance by the productivity commission and urged General Motors to be patient.
He said the government also intended to stand by its election policy to cut $500 million from total auto industry assistance.
"It won't break the car industry,” he said.
“I'm confident I can get around that," he said.
But the minister said the industry has to become internationally competitive and survive without ongoing government assistance.
