Holden's car manufacturing operations will remain operational.
Holden's car manufacturing operations will remain operational. GM Corp

Holden has not decided to close Australian factory

HOLDEN has plans to keep building plans in Australia…for now.

Holden chief executive Mike Devereux has just told the Productivity Commission that parent company General Motors has made no decision on the future of its Australian operation.

But Federal Coalition ministers believe Holden has decided to quit manufacturing in Australia as early as 2016 - the same time that Ford will close its Broadmeadows car factories where the Falcon and Territory are built.

Many were forecasting that Mr Devereux would deliver a bombshell at today's hearing in Melbourne, but he maintained his steadfast approach to building a case for Australian manufacturing.

If Holden does keep building cars Down Under, then its use of local parts looks grim.

Mr Devereux revealed the proposed "next generation" of Holdens to be produced from 2016-2022 are forecast to have only 25-30% local input.

That could put the Australian parts industry in jeopardy.

The Productivity Commission is currently undertaking an inquiry into public support for Australia's automotive manufacturing industry, including passenger motor vehicle and automotive component production.

The Commission has been asked to:

  • examine national and international market and regulatory factors affecting the industry
  • identify and evaluate possible alternative public support mechanisms
  • identify any significant transition issues or adjustment costs that may arise from alternative support mechanisms or policy changes and how they might be best managed
  • assess the significance of the capabilities within the industry, its direct employment and economic benefits, and its secondary impacts on other sectors of the economy
  • quantify the costs and benefits of existing and alternative assistance mechanisms.

A preliminary findings report will be delivered by December 20, with the final report due by March 31.