When Ford announced from the Detroit Motor Show that it had secured the short-term future of the Falcon and Territory -- and the workforce that builds the vehicles -- with a $103 million cash injection to ensure viability until 2016, Holden was still negotiating behind the scenes to ink a slightly longer term deal that would cement its manufacturing future until at least 2020.
While the upshot of the negotiations between Holden, its parent company General Motors and the Australian government are still unclear, Holden says it is confident that its local manufacturing future is safe.
The talks that took place in Detroit between Federal Minister for Manufacturing, Senator Kim Car, South Australian Premier, Jay Weatherill, Holden Managing Director Mike Devereux and GM CEO Dan Akerson, were positive says Holden, which released a carefully worded press release explaining the company's "ongoing commitment to manufacturing cars in Australia".
However there has been some misinterpretation of the outcome of the talks between the various parties, particularly after SA Premier, Jay Weatherill, told local radio the plan was to 'save Holden'.
"The discussions with the Minister and the Premier have been very positive and productive," explained Holden boss, Mike Devereux.
"We're making good progress in developing a new co-investment plan to help secure a long-term future for Holden and the automotive and manufacturing industry more broadly.
"Minister Carr and Premier Weatherill demonstrated the clear commitment of the Australian and South Australian Governments to maintaining a healthy and viable automotive industry in Australia," added Devereux.
Holden's local manufacturing is far from dead, nor is Ford's. But as the sales of large cars continues to wane locally and globally (Holden Commodore lost the title of Australia's best-selling car this -- a title it held for 15 consecutive years), both companies will require government funding to continue developing and building large cars in the foreseeable future.
Furthermore, the global competition for investment dollars from Holden and Ford's American-based parent companies has never been fiercer, with countries like Thailand and Korea offering strong returns on their products.
"Car makers are investing billions of dollars to develop future vehicles, so it's critical for Australia to have consistent and competitive long term polices that make this country an attractive place for General Motors and other companies to continue to invest," noted Devereux.
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