Holden's future remains unclear

The Liberal government says it will wait for the outcome of a Productivity Commission Review before agreeing to another cash injection to ensure Holden's long-term viability as a local car manufacturer.

The report was originally due in 18-months time, but the federal industry minister, Ian Macfarlane, has fast tracked the review, for publication in December.

Ultimately, Holden's 1700 factory line workers won't know their fate until January or February 2014, after the government has had time to digest the report's findings and decide on what action, if any, to take.

In March 2012 the Labor government handed over $275 million to ensure Holden could manufacture cars locally until 2022, but the GM-owned car maker says changed market conditions necessitate another handout.

Ian Macfarlane hinted that another payout to Holden to secure the jobs of thousands of workers at Holden (and related suppliers) was not out of the question. However the minister cautioned that during ongoing talks between the government and GM Holden boss Mike Devereux during the coming months, such a payout would likely be the last handout from his government.

As Ian Macfarlane toured Holden's Elizabeth factory in South Australia along with several other politicians, including independent Senator Nick Xenophon and South Australian Premier Jay Weatherill, the factory workers looked on knowing their fate and that of the Holden Commodore was in the balance.

In August 2013, Holden workers agreed to have their wages frozen for three-years to help Holden reduce its costs, but the agreement is nullified if Holden's future is not secured beyond 2022.

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