General Motors’ Holden unit has confirmed that it will cease its Australian manufacturing operations in 2017.
Nearly 3,000 workers will be impacted by the announcement since Holden has 1,600 employees in its Elizabeth vehicle manufacturing plant and 1,300 at Holden’s Victorian workforce. The announcement comes 24 hours after Holden chief executive Mike Devereux explained to the Australian government how annual subsidies for the automotive industry benefit economic activity. Prime Minister Tony Abbott’s government plans to cut $500million Australian dollars of subsidies from the car industry by 2015.
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The announcement comes straight from General Motors with CEO Dan Akerson saying that the decision “reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”
Holden promised that it will continue to have a significant presence in Australia beyond 2017, with a national sales company, a national parts distribution center and a global design studio.
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[Source: News.com.au]
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