Holden silent on funding bid
Car maker Holden says it is doing “everything in its power” to secure the future of its local manufacturing operations but won’t be drawn on more reports it is seeking extra government funds.
The company says a suggestion it has asked for an extra $265 million from the federal government on top of the $275 million it was promised last year, is “purely speculative”.
“We are in close and constant discussions with both sides of politics – at a state and federal level – but are not in a position to publicly comment on the details of those discussions,” a spokesman said on Thursday.
“We will also not be commenting publicly on the process, or any meetings, that may need to occur as we work towards securing the future of Holden manufacturing.”
The company said its plan remained to introduce two new models at its Elizabeth facility from 2016 and it needed to meet several milestones to achieve that program.
“The two most crucial being reducing our structural costs and improving productivity in our factory, along with the implementation of clear, consistent and globally-competitive industry policy,” the spokesman said.
Holden is in the process of cutting 400 staff from its Adelaide plant and is negotiating on a new labour agreement with remaining workers which could include pay cuts.
But there is growing speculation the company will still need more assistance to ensure it can continue to build cars in Australia.
A decision by Ford to end local production from 2016 is also thought to have strengthened Holden’s case for more funds.
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The federal government said negotiations with Holden were continuing but Industry Minister Kim Carr said no comment would be made ahead of reaching an agreement.
Opposition Leader Tony Abbott said a coalition government would look at further “generous assistance” to Holden but it would need to cut production costs and boost exports.
But shadow treasurer Joe Hockey questioned the appropriateness of a further handout to Holden.
“There comes a point where you need to say enough is enough,” Hockey told Sky News.
