Money

Holden commits $1 billion until 2022

The Holden Cruze looks set to have a long term future at the company's Australian manufacturing plants.
The Holden Cruze looks set to have a long term future at the company's Australian manufacturing plants. Contributed

GENERAL Motors Holden today committed to investing more than $1 billion in local manufacturing to secure its Victorian and South Australian-based operations until at least 2022 following a $275 million government injection.

The government subsidies - $225 million from the federal government and $50 million from the South Australian government - will be matched by at least $1 billion from Holden's US-based parent company, General Motors.

Minister for Industry and Innovation, Greg Combet, announced the federal government's renewed support of the industry.

"The Gillard Government is committed to helping firms in the automotive supply chain improve their competitiveness and break into global supply chains," read a statement from the minister's office.

"This can only be done through a strong focus on innovation and productivity to drive competitiveness."

Today's announcement has been expected for months, with Holden chairman and managing director Mike Devereux making no secret of the company's need for support.

However, while it was expected the government funding would run into the hundreds of millions of dollars, $275 million was towards the upper end of estimations.

"Co-investment of this kind is critical for our industry and helps Australia compete against other car making countries that protect their industries through tariffs and/or financial support," said Devereux.

"Holden will receive government co-investment of $275 million and directly invest well in excess of a billion dollars in the 10-year vehicle development and manufacturing program.

"The investment will help Australia retain its capability to design, engineer and build cars with two all-new vehicles going into production at Elizabeth, South Australia, in the second half of this decade."

The money will go towards securing local production of two models plucked from within the GM product suite, giving Holden the flexibility to respond to changing market dynamics; over the last decade local car makers have been caught out by a dramatic shift from large cars towards small cars and four-wheel-drive-style SUVs.

It's not known what two models will be produced at Holden's Elizabeth plant in South Australia, although Holden chairman and managing director Mike Devereux has previously suggested the Cruze small car that's built there, and also produced in other plants around the world, would make sense for local production longer term.

Small cars now make up almost one in four of the 1 million-plus annual new vehicle sales and the Cruze is the third best seller in the segment, behind the Mazda3 and Toyota Corolla.

Despite media speculation the Commodore will cease local production, its popularity - it's still Australia's second best-selling car and was previously the top seller for 15 consecutive years - would suggest it's also a front runner to continue with local production.

The iconic Holden Ute that's produced off the Commodore platform is also a big seller and something Devereux has previously said "we wouldn't want to walk away from something like that".

As part of lengthy government negotiations Holden is already understood to have determined the models it will produce, although the company isn't saying anything yet.

"We don't have anything to announce" said spokeswoman Emily Perry.

Within months Holden is also expected to confirm an export program that will involve rebranding the Commodore as a Chevrolet for the US market.

Rumours swirled last week that the Commodore would form the basis of Chevrolet's race car in the hugely popular Nascar series, but Holden is staying tight lipped on any US prospects.

"We've said we will continue to look at niche exporting opportunities where they make sense but we don't have anything to announce," said Perry.

Holden's has a chequered history with exports to the US, sometimes missing sales targets or being thwarted by broader decisions within GM. It exported the Monaro there in 2003 as the value of the Australian dollar began to climb, something that has also hurt exports of the Commodore-based Caprice that's currently been sold there as a police car in low volumes.

The Commodore was also sold as a Pontiac between in 2008 and 2009 before the brand was shelved as part of GM's restructure following bankruptcy.

It's not known what role Holden's Melbourne-based design and engineering teams will play longer term within the GM world, although they are increasingly playing a broader role as a result of the globalisation sweeping the industry.

Holden has already been heavily involved in conceiving vehicles not sold here; the Chevrolet Camaro muscle car sold in the US was designed and engineered in Melbourne.

Topics:  federal government holden cruze subsidy



Brisbane's arts and culture events centre stage

A CITY drenched in culture, Brisbane is again flaunting an arts and culture events calendar fit for a queen.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

Six reasons to get to Brisbane this Autumn

The Brisbane Powerhouse has free comedy on Friday nights.

AUTUMN has to be up there with one of the best seasons of the year.

The best things to do in Brisbane are FREE. Yes, FREE

Mt Coot-tha is a seriously gorgeous way to start your day.

HEADING to the big smoke doesn’t have to come with a big price tag.

LIVE UPDATES: Violent prisoners escape, Rocky dog squad called

Capricorn Correction Centre prison generic.   Photo: Chris Ison / The Morning Bulletin

RESIDENTS urged to "be aware" as police search for escapees.

Deluge brings massive price rise for property near Rocky

BIG BUY: The Howard family handed over Yaamba's historic Balmoral property to the Harvey family on Thursday.

DOWNPOUR'S perfect timing entices buyer to pay huge dollars.

Shock as miner wastes $110K redundancy

Methamphetamine also known as crystal meth

Addiction spurred by redundancy from mine job and shoulder injury

Local Partners

Motorbike rider airlifted to Rocky after head on collision

A "HIGH-SPEED" collision with a 4WD has left a motorbike ride seriously injured.


Win a $1000

GROCERY GIFT CARD!
Learn More

Musical favourite hits the Rockhampton stage

STEPPING UP: The new kid Ren, played by Joseph Lewis with the town folk (from left) Ben Childes, Jack Kelly, Patrick Reddy, Mackenzie Ralphs and Nicholas Marxsen. Footloose will hit the Pilbeam Theatre Stage Friday, May 26 and Saturday May 27.

The Cathedral College gets 'Footloose'

ACROSS THE REGION: Your weekend of events in CQ

STAGE: The Cathedral College presents Footloose at the Pilbeam Theatre on Friday and Saturday.

Find out what's happening across CQ right here.

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

Book review: Mia Freedman's book meets her critics head on

IF AUSTRALIA does have a tall poppy syndrome, Mia Freedman has most certainly been a victim.

Wick'ed grudge holds for a sequel

LEGENDARY ASSASSIN: Keanu Reeves in a scene from the movie John Wick: Chapter 2.

They killed his dog and stole his car, now what?

US expert lecturer visits Rockhampton

ARCITECTURE: Sandra will give a beautifully illustrated talk: 'Ancient Mayan Art & Architecture: Hidden Secrets of the Jungle'

Hidden secrets of the jungle revealed

Model Bella Hadid's see-through dress shocks in Cannes

US model Bella Hadid attends the Cinema Against AIDS amfAR gala 2017 held at the Hotel du Cap, Eden Roc in Cap d'Antibes, France, 25 May 2017.

It’s like she’s become addicted to shock value.

No room for morbid fans

Chris Cornell.

Fans want to stay in the hotel room where Chris Cornell died

Star Wars' 1977 Stormtrooper head banger confesses

A Stormtrooper is responsible for the biggest blunder in a Star Wars movie. Picture: Supplied

Man in most famous blooper in Star Wars history breaks silence

Legendary Rocky man's journey from retail ruin to real success

GOOD HANDS: Doug Webber is sold on his new career as a Real Estate Agent at Pat O'Driscolls.

He lost it all, but a new career 30 years in the making is underway

Deluge brings massive price rise for property near Rocky

BIG BUY: The Howard family handed over Yaamba's historic Balmoral property to the Harvey family on Thursday.

DOWNPOUR'S perfect timing entices buyer to pay huge dollars.

Timeless classic that will cause a 'feeding frenzy'

10 Dagmar St, The Range is complete in from its colonial style to front yard.

1920s Colonial home perfect for large families

Investor travels 1500km to bid for bargain Rocky homes

McGrath Property Agents Rockhampton and Capricorn Coast Principal Todd Brandon.

Competitive bidding at in-house auction of deceased estate

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Ready to SELL your property?

Post Your Ad Here!