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NEWS
Not too late to save Holden, says opposition
Labor claims government will be to blame if Holden stops making cars in Australia by 2016, as reportedThe federal opposition says Holden is not dead yet and the government will be to blame if General Motors ceases manufacturing in Australia by 2016.
The ABC reported overnight that unnamed “senior government ministers” said the decision to close Holden’s Adelaide factory by 2016 – the same year Ford will stop making cars in Australia – had already been made.
According to ABC sources, GM’s decision to pull up stumps in Australia was supposed to be announced this week but has been put off until early next year.
Holden would not respond to the news directly,with Corporate Communications Manager Sean Poppitt saying only: “We do not respond to speculation. Our discussions with government are continuing.”
However, shadow industry minister Kim Carr said he didn’t believe the decision had been made, and insisted it was not too late for the Abbott government to save Holden.
“We understand that no decision has yet been made by GM Holden, however it is on a knife’s edge,” he said.
Federal industry minister Ian Macfarlane says he has spoken to Holden and it has denied the reports.
South Australian Premier Jay Weatherill also said he spoke to Macfarlane following the ABC story and he and Holden denied the reports.
“This amounts to a massive split within the federal Liberal government and one which is an incredibly destructive one for the future of Holden and incredibly upsetting for those tens of thousands of workers in South Australia and across the nation who rely on the car industry for their future,” he said.
Senator Carr echoed that sentiment, saying the Coalition government is attempting to justify its inaction by claiming GM has already made the decision to exit Australian manufacturing, demonstrating a deep division within the Abbott government over the future of Australia’s car industry.
“Far from the calm and methodical government Mr Abbott promised, we are seeing nothing more than division and dysfunction, with Australia’s automotive industry the latest victim,” he said.
“The Abbott government is now speculating about itself in the media and revealing deep internal divisions in a desperate bid to find an alibi for its indolence.
“Senior ministers in the Coalition government are trying to claim that no matter what they do, the die is cast and therefore they are justified in doing nothing.
“This is a factional fight within the Liberal party between those that want to abandon Australian workers and the Australian automotive industry, and those that understand how important this industry is to the future of Australia.”
The opposition has warned GM would decide Holden’s fate before Christmas if the government did not announce an industry assistance package before then.
But the government continues to say it will wait for the preliminary findings of a Productivity Commission inquiry by Christmas, before deciding any assistance package by March.
Senator Carr said it was not too late to save Holden, but the government needed to act now to guarantee an Australian car-making industry into the 2020s.
“There is still time to act. There needs to be a serious intervention by the Prime Minister if this industry – and the 200,000 jobs and hundreds of businesses it supports – is to survive.
“Why has there been no mission to Detroit to talk to senior management at General Motors?
“The Coalition knows the timetable for a decision is urgent and has known this since before Christmas last year. These are international decisions about the roll out of new models that need to be made.
“This is a failure of the Abbott Government to face up to its responsibilities.
“We are faced with a situation that we don’t need to be in. With our New Car Plan for the 2020s Labor had secured the future of automotive in Australia.
“But the Coalition have not pursued this commitment, instead they are ripping $500 million in support out of the industry and going ahead with a Productivity Commission report that will likely be nothing more than a post-mortem.”
Senator Carr echoed industry submissions that claimed the economy would be $21.5 billion worse off without a car industry, and said the $2.7 billion invested by the previous Labor government attracted $26 billion in new investment.
“The fact is government co-investment in automotive delivers a return at a rate of 9:1,” he said.
“The reality is it will cost taxpayers many times more to let this industry fail than it will to support it.
“If the Abbott government brings about the death of the automotive industry it would slash $21.5 billion from the economy.
“Australia cannot afford such a hit. The Abbott government must act urgently in the best interests of Australian industry and Australian jobs.”
Holden chief Mike Devereux addressed day and night shift workers at the Elizabeth plant yesterday to reiterate his commitment to the company until February, when he will depart his post as CEO to take up a more senior regional role within GM based in China.
But, less than three weeks before Christmas, he made no mention of any impending factory closure.
AMWU chief John Camillo said GM always intended to decide by November whether it would invest $1 billion to develop two new models for release beyond 2016, when the Australian-made Cruze and Commodore are due for replacement.
“[Mike Devereaux] never mentioned anything in regards to any announcement or any discussion of closure,” Camillo told the ABC.
“He just indicated to workers he will be continuing his role as CEO of Australia until February next year until he gets a replacement.
“He indicated a decision will be made by GM in Detroit whether Holden stays or not. Then went on to talk about the Productivity Commission.
“I find it strange he addresses all the workers, doesn't indicate in regards to closure or speculation, and all of a sudden there is discussions or talks about a senior minister having understandings of these ceasing operation in Australia.
“At this stage we have to treat it as speculation, but it is up to the senior executive at Holden to allow the workers to be the first ones to be told if there is any truth in this speculation of Holden ceasing operation by 2016 or 17.”
Camillo said he believed that without Holden, Toyota’s Australian manufacturing future would be doomed in the absence of a sustainable local parts supply chain, spelling the end of 50,000 direct jobs and 200,000 in total.
Holden's closure would cost the South Australian economy $1.24 billion and 13,200 jobs alone, according to research released last month.
“I don't think [Toyota] can sustain such small supplies in Australia to produce cheaper parts for them to continue producing here in Australia.
“We will see the closure of the automotive industry within a few years.”
Independent Senator Nick Xenophon said the government had been negligent in not committing the same assistance to the car industry as the previous government.
“I'm still hoping against hope that General Motors will reconsider.
“I think a mistake has been made by this government for not committing the money the former government did.
“If they don't, as a nation we need to rally behind this industry to make sure it can survive, any job losses are minimised and we can look to the future without General Motors.”
Holden has received $2.17 billion in federal government assistance in the past 12 years.
Australian car production peaked at 475,000 in 1970 and has been in steady decline since then.
Although Toyota exports more cars from Australia than it sells here, with just one month to go in 2013 only 106,722 locally made cars have been sold here this year (down 16.5 per cent), versus 932,749 imported vehicles (up five per cent).
Australia’s beef, wheat and wine industries will be the big winners from yesterday’s announcement of a free-trade agreement between Australia and South Korea, which is expected to boost trade by 25 per cent over the next 15 years.
But Hyundai-Kia and GM, which also produces the Cruze in Korea, will also be exempt from the current five per cent import tariff, making cars imported from Korea more profitable and/or competitive.
GM yesterday announced it will axe the Chevrolet brand in Europe to focus on Opel, which was recently axed in Australia.
If Holden joins Ford in ceasing local manufacture it is likely to move to a full range of imported passenger models from Korea, after which some industry observers believe the Holden brand will eventually be replaced by Chevrolet.
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Written byMarton Pettendy
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