Holden’s big end finds a new beginning
Holden: it’s not the end – it’s the beginning; or the beginning of the end; or a new beginning.
The car maker hosted a station wagon full of politicians yesterday as the next stage in the co-investment saga morphed from emergency to opportunity.
Voters were told in the months leading up to the September federal election that the poll would be a “referendum on Holden’s future”.
At stake, apparently, was the generous Gillard and Weatherill governments’ joint promise of a $285 million contribution towards a Holden plan to build two models at Elizabeth from 2016.
This, they said, would guarantee Holden’s presence here until at least 2022.
The Abbot-led Coalition had a less generous view of the level of subsidies the auto industry deserved, suggesting it would cut the level of handouts by $500 million.
That’s now the subject of a Productivity Commission Review Federal Industry, Industry Minister Ian Macfarlane said in Adelaide yesterday, adding his visit was “the first step”.
“Well, I’m not bringing money today, I’ve come to begin a long process with the Premier of South Australia and whoever that may be after the next election, we’ll be still finishing this process,” he said.
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“This is not a one day visit: here’s the cash, let’s shoot through.
“This is a car industry plan that I’ve got to take back and talk to my colleagues in Cabinet, I’ve got to talk to the Victorian Premier Dennis Napthine, I’ve obviously got to continue discussions with Holden and Ford and Toyota, there’s a big industry here and the component industry.
“So this is a journey and today is the first step.”
Macfarlane said it will be “one hell of a challenge” to save Holden but he wants the company building vehicles in Australia for the next 100 years.
So, there you have it – the end wasn’t nigh after all.
But hell is never far away.
“This is one hell of a challenge. One hell of a solution is required,” Macfarlane told reporters after his plant tour.
Holden’s boss Mike Devereux fronted the media with his new best friend and managed to avoid putting a number on how much money he wanted from the now-confused taxpayers of Australia.
Reports had already emerged that after securing an agreement last year for $275 million he’s now pitching for close to $500 million before committing to develop and build two new car models from 2016.
“The discussions that we’re going to have begin today and those discussions are likely to be ongoing,” Devereux said.
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It’s nice to see he’s committed to another beginning – especially if it delivers more money.
Macfarlane is a self-confessed Brock-hat-wearing Holden man.
“I’m not concerned about the next six months, I’m not concerned about the next three years,” he said.
“My goal is to see Australian cars built here for 100 years.”
So the end is a long way away.
Or is it?
“Time is running out, but the reality is we’re going to get this right, we’re going to give this everything and I’m going to ask GM in Detroit to be a little bit patient,” Macfarlane said.
“I know they’ve got deadlines; I’m doing my best. These guys are all promising me we’ll have a frank discussion behind closed doors – there’ll be no leaks, there’ll be no politics.
“I’ve got to have a Productivity Commission report before I hand down the final decision. I will try and do something in the short term just to keep everything going.
“The long-term plan is to have an auto industry here for a long time.”
And with that, they all piled back into the station wagon and headed back to their respective parliamentary offices.
The long-suffering car workers at Elizabeth went home when the whistle blew, knowing not whether this was the end or the beginning.
Whatever it was that we voted for in September has as much relevance as a signed poster of Buddy Franklin in a Hawthorn jumper.
September 2013 seems a distant memory.
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