Prime Minister Tony Abbott and Opposition Leader Bill Shorten have made parliamentary statements on the Holden closure that led to terse exchanges in the House of Representatives tonight.
GMH To Close Australian Manufacturing Operations In 2017: Official
Dec 11, 2013
General Motors has announced that it will discontinue vehicle and engine manufacturing in Australia by the end of 2017, bringing to an end 60 years of making the iconic Holden car.
The official announcement from General Motors says it will “transition to a national sales company in Australia and New Zealand”.
The decision will affect approximately 2,900 positions over the next four years, 1,600 in South Australia and 1,300 in Victoria.
The announcement cited the value of the Australian dollar as a chief reason for the decision. “The appreciation of the currency alone means that at the Australian dollar’s peak, making things in Australia was 65 percent more expensive compared to just a decade earlier.”
News of the General Motors decision was announced by the Victorian Premier, Denis Napthine, during Question Time. In Federal Parliament, the Opposition moved a motion criticising the government over the loss of jobs.
Treasurer Joe Hockey accused the Opposition of confected outrage and hypocrisy over Holden’s decision. He said global car manufacturers were moving operations to locations where production costs are cheaper. He pointed out that former Prime Minister Paul Keating, who as Treasurer floated the dollar in 1983, is to address the Labor Caucus tomorrow.
In Parliament yesterday, Hockey made a spirited demand that Holden announce its intentions. His remarks received front page treatment today, as shown below.
Text of a statement from General Motors.
GM to Transition to a National Sales Company in Australia and New Zealand
Company to cease manufacturing in Australia by 2017
DETROIT – As part of its ongoing actions to decisively address the performance of its global operations, General Motors today announced it 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. [Read more…]
Car Industry Report Predicts Economic Devastation If Government Assistance Ends
Nov 04, 2013
The Federal Chamber of Automotive Industries has released a report on the car industry.
The report, prepared by the Allen Consulting Group, is titled: The strategic role of the Australian Automotive Manufacturing Industry.
The report argues that Australia’s GDP would be $7.3 billion smaller (in today’s dollars) by 2018 without autmotive manufacturing. It says billions in foreign direct investment would cease and the economies of Adelaide and Melbourne “would be devastated” if government assistance to the industry ceased. The report says employment would fall by around 1.5%.
The car industry receives around $500 million in government funding each year. The report says: “For this investment, the Australian economy is $21.5 billion larger.”
The report comes as the Abbott government faces a decision about the continuation of government assistance to the car industry. Politically, the timing of the decision is awkward because of the South Australian election next March and the Victorian election at the end of 2014.
The government’s decision will also be a test of its economic decision-making and its commitment to market principles.
Extract from “The strategic role of the Australian Automotive Manufacturing Industry”, p55. [Read more…]
Federal Government Props Up Mitsubishi
Apr 26, 2002
The Federal Government announced today that it is to provide $35 million of assistance to Mitsubishi Motors in 2004-5.
The move will promote job growth in Adelaide and encourage the car-maker to retain its Australian operations.
The decision will be seen by many to be at odds with the philosophy of a government that preaches the free enterprise mantra of competition and efficiency.
Text of statement from Prime Minister John Howard announcing the decision to provide $35 million of support to Mitsubishi.
I am pleased to announce that Mitsubishi Motors Corporation has accepted a $35 million offer of assistance from the Commonwealth Government. This assistance will facilitate a major new investment in Mitsubishi’s Adelaide plant and the establishment of a global research and development centre in South Australia. [Read more…]