From Australian newpaper Herald Sun
HOLDEN has told the Victorian Government that it will cease operations in 2017.
The announcement will be made to the workforce later today.
Trying to find more on this
- GM/Holden says they are to close a ‘significant part’ of operations in 2017
From the Sydney Morning Herald:
2:14pm: Warren Truss confirms to the House that he spoke to Holden’s Mike Devereux about ten minutes ago.
Holden will be packing up in 2017.
(It took a question from Tanya Plibersek to get this info out of the acting PM)
“I did not speak about it earlier in the House because at this moment Mr Devereux is addressing his employees,” he explains.
—
Statement from GM/Holden:
GM to Transition to a National Sales Company in Australia and New Zealand
Company to cease manufacturing in Australia by 2017
Says:
- would transition to a national sales company in Australia and New Zealand.
- The company also said it would discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017
- perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world
- approximately 2,900 positions will be impacted over the next four years
- Holden will continue to have a significant presence in Australia beyond 2017, comprising a national sales company, a national parts distribution centre and a global design studio
–
Although GM say it will effect 2900 jobs, the number will be much greater due to the effects on suppliers etc.
–
More: Sydney Morning Herald:
The announcement will send shockwaves through the struggling automotive industry, which has warned of upwards of 50,000 job losses.
The Holden announcement is also almost certain to force Toyota to follow suit, which relies heavily on the 160-odd component makers that rely on economies of scale to maintain competitive prices.
But the determination of the recently-elected Tony Abbott-led Liberal government to cut vital funding to the industry also contributed.
Australian Financial Review (gated):
The Treasurer Joe Hockey said: “Now that Mr Devereux has had the opportunity to speak to his workers, I want to say on behalf of the government that we will work closely with the opposition of Australia, government of South Australia and the unions to make sure that we avoid an economic downturn in South Australia.
