Holden rejects another factory revival bid

Holden and its parent General Motors have rejected UK billionaire businessman Sanjeev Gupta's bid to build electric cars using assets from its old Adelaide assembly plant.

Holden confirmed the decision in a shock statement issued overnight.

It said it had "comprehensively assessed" the bid from Gupta's company GFG Alliance and then decided not to proceed with the offer.

The decision is likely to go down like a lead balloon in South Australia, where GFG Alliance has already invested to save the Whyalla steelworks.

SA Premier Jay Weatherill has declared publicly that Holden would be "spiteful" not to sell the assets to GFG Alliance.

The Advertiser newspaper has reported he has written to GM chief Mary Barra urging her to reconsider the decision.

It is understood Gupta wanted to use the manufacturing equipment to build EVs on the grounds of the old Holden plant at Elizabeth, which is now owned by the Pelligra Group and renamed Lionsgate Park.

Holden stopped building Commodores at its Elizabeth last October. The imported replacement goes on sale this month.

"GFG Alliance's proposal to purchase selected manufacturing assets was comprehensively assessed by GM and Holden and the decision was taken not to proceed with the offer," the Holden statement read.

"At no stage were any of the parties near agreement on the purchase of these manufacturing assets.

"Many of the assets sought by GFG Alliance had already been identified by GM for redeployment to other GM sites globally.

"For other assets, there was a significant distance between the value our company and GFG Alliance placed on them.

"Throughout this process, Holden has accommodated all requests from GFG Alliance for information and access to the plant.

"GM also delayed the public auction of surplus assets to give due consideration to the proposal from GFG Alliance.

"GM thanks GFG Alliance for their approach and the South Australian Government for its interest in this matter."

It is understood that GFG Alliance could still purchase at least some of the Holden manufacturing assets via public auction.

This is the second time Holden and GM have knocked back an automotive white knight intent on resurrecting car building in South Australia, following on from the failed 2016 bid by Belgian Guido Dumarey to keep the Elizabeth plant open.