GM Holden threatens to exit Aust

General Motors Holden has threatened to cease producing cars in Australia if the new coalition government does not commit to fresh subsidies within two months, according to The Australian Financial Review.

The automaker has done an about-face after agreeing to a plan negotiated by the federal government of Julia Gillard and the South Australian Labor government that was supposed to maintain Holden's Adelaide manufacturing operations until at least 2022.

However, with the change in federal government the automaker has said the Abbott government has yet to commit to any specific arrangements for the auto sector that would allow for manufacturing to continue beyond 2015.

The AFR reported that Holden has said it will exit from Australian manufacturing if it does not receive a firm funding commitment from the Abbott government within about two months.

Such a move would leave Toyota as the only company producing cars domestically, and leave the parts supply industry with limited business.

The new industry minister, Ian Macfarlane, plans to visit Holden's Adelaide plant in early October, along with Toyota's Melbourne plant.

“I'll ask the opposition shadow minister to come along so there's no politics,” Mr Macfarlane said, according to the AFR.

“It's about everyone doing what needs to be done.



“I want to see Holden bring out a new model. Now whether that's possible or not, let's see. But let's not die wondering.”