Breaking News: Holden to cease manufacturing in Australia in 2017

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Holden to close car plant: Coalition

http://www.theaustralian.com.au/nati...1226776531513#

HOLDEN has decided to end its Australian manufacturing operations but has postponed an announcement until next year, senior Coalition sources say.

The Australian understands that General Motors was poised to announce it was ending its Australian manufacturing operations in 2016 as early as yesterday, but a decision in Beijing the night before has delayed the decision.

Sources say that General Motors is delaying the announcement for commercial reasons, but the decision to quit Australia has already been signed off by the carmaker's Detroit-based headquarters.

It is understood some Coalition ministers, including Industry Minister Ian Macfarlane, have not been advised of General Motors' decision, because the company "does not want to be saved", sources told The Australian last night.

"An announcement was well advanced and was ready to go," a senior Coalition minister said.

The South Australian government and opposition were understood to have been informed on Wednesday that a decision was imminent but within a few hours, they were told the announcement had been put off.

Mr Macfarlane said last night it was not his understanding that General Motors' had already made a decision to pull out of Australia.

South Australian Premier Jay Weatherill said last night Mr Macfarlane had told him he had spoken to Holden and the company had denied the reports.

"What is happening now is that federal government ministers are briefing against their own colleagues, exposing the deep divisions in the Liberal Party over the auto industry's future," Mr Weatherill said.

"It is now time for the Prime Minister to intervene because this cannot be allowed to continue. This ongoing speculation is incredibly damaging to Holden and to the workers."

A Holden spokesman last night declined to "respond to speculation".

"Our discussions with government are continuing," he said.

The Coalition has launched a Productivity Commission inquiry to determine whether there is a viable future for carmaking in Australia. The Holden spokesman said Holden Australia managing director Mike Devereux was preparing to front the commission next Tuesday.

Holden was initially expected to decide the fate of its northern Adelaide factory operations last month, after negotiating a deal with unions to reduce operating costs. But the Productivity Commission review means any certainty around government financial assistance won't be known until next year.

Mr Devereux told senior Coalition MPs before the election, including Tony Abbott, that an annual payment was needed for Holden to continue in Australia, and to invest in building two next-generation vehicles at its Elizabeth plant in northern Adelaide.

Mr Devereux yesterday told workers at Holden's Adelaide manufacturing plant that he would stay on in his position until next year.

He had been expected to leave Australia this month to take on a senior role for General Motors in Shanghai.

Australian Manufacturing Workers Union state secretary John Camillo said Mr Devereux had given "no answers" to workers frustrated at the lack of an investment decision by the company.

Toyota would be the only carmaker left manufacturing cars in Australia if Holden did decide to pull out.