Holden confident of government support

Holden's announcement yesterday that it would be merging its morning and afternoon production shifts is a result of the dollar's strength, not weaknesses in the company, and spokespersons say they are confident the Federal Government will support their decision.

"I am confident the governments understand the world as it is, not the way we'd hope it would be," said GM Holden's Chairman and Managing Director Mike Devereux.

"Both the coalition and Labor party understand that, and whilst there's a lot of back and forth in the political debate right now, both sides of the equation realise that manufacturing must remain part of Australia's future.

"We don't want to become just a hole in the ground for raw materials... I am very hopeful we'll get a good outcome."

British-born, but raised in Canada, Devereux said Australia had made "smart" provisions to encourage manufacturing strength in the past.

"This country made a strategic decision decades ago to be a very open market, and that has benefits for consumers. Prices come down when tariffs come down," he reasoned. "The pressure put on the manufacturing base to get competitive is obvious and we have gotten competitive.

"Thank goodness we have a manufacturing business model strategy in this country that doesn't rely on exports... From the second I stepped into this job I said exports were the icing on the cake for us."

Devereux argues that Holden's business strength is based on two platforms -- the Commodore and the Cruze -- currently claiming two spots in Australia's top five best sellers list.

Devereux also said the fact Holden was in a stable position was ratification that his predecessor, Mark Reuss had implemented a sound business model three years ago.

"When you consider what has transpired both to the country and to the currency... We are insulated against that to a large regard by having Cruze and Commodore being built at Elizabeth [South Australia]."

Having two models on Australian buyers' favourites list is further proof Reuss and his team were on the right path years ago, said Devereux.

"It upsets me, frankly, when I hear people say: 'Australian car companies should make what Australian consumers want to buy...' Well, I think we already do. Two of the top five sellers in the country from the same damn plant!

"What we can't do is go back to protectionism in this country. We can play it the same way as the Cameron government did in the UK or Obama did in the USA, or the way Angela Merkel plays it... You have to co-invest capital, and not just a little capital but hundreds of millions of dollars of investment and that's what our current negotiations with the government are all about.

"In around 30 to 50 days we will have some announcements to make in that regard; which will be very important to the long-term future of the manufacturing base in this country."

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