Economy
Holden to cease its manufacturing operations in Australia by 2017
Iconic car maker Holden has announced it will stop making vehicles in Australia by the end of 2017.
The decision means 2,900 people will lose their jobs – 1,600 from the manufacturing plant in South Australia and 1,300 in Victoria.
The company’s general manager, Mike Devereux, announced the closure in a statement just as he was set to inform workers at the Elizabeth plant in SA.
Key points
Holden to end its manufacturing in Australia by end of 2017.
Holden says 2,900 positions will be impacted over the next four years.
Blamed the high Australian dollar, high cost of production, and small fragmented market.
Will retain sales division, parts distribution, and a global design studio.
33,000 people employed in the automotive components sector are likely to also be affected.
“This has been a difficult decision given Holden’s long and proud history of building vehicles in Australia,” he said.
“We are dedicated to working with our teams, unions and the local communities, along with the federal and state governments, to support our people.”
Acting Prime Minister Warren Truss, who yesterday demanded an urgent clarification from the company about its future, told Federal Parliament that he had spoken to Mr Devereux shortly before the decision became public.
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Holden will retain its sales unit, a parts distribution centre and a design studio in Australia.
During Question Time, Opposition MP Nick Champion, whose electorate contains the Holden’s SA Elizabeth plant, accused the Government of being “complacent about Australian jobs”.
The jibe prompted an angry response from Industry Minister Ian Macfarlane.
“How quickly do they degenerate to raw politics,” he said.
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