Holden Said to Look For More Aid From Australian Government image

The Australian newspaper reported that GM’s Australian unit Holden seeks another government aid of US$55 million, to avoid the closing of its Adelaide plant by the end of this year.

Last year Holden has been promised an investment package of 275 million Australian dollars from the federal and state governments. The newspaper reported that the automaker has asked for an aid of up to A$60 million to make sure it ill be able to manufacture its two next-generation models at the Adelaide facility.

This week, South Australian Manufacturing Minister Tom Kenyon warned the Holden unit might announce the closing of the plant by the end of this year. This comes less than two months after Ford said it will stop production in Australia in 2016, which will cause a massive disruption in the region’s auto industry, in which the government has been invested heavily.

Holden chairman and managing director Mike Devereux said that there is still hope for the industry and the company announced it will invest $1 billion in the region to manufacture two new vehicle models in the following 10 years. Holden has recently launched the new Commodore car, considered by the automaker ‘the most technologically advanced yet made in Australia.’

The auto manufacturing industry in Australia is slowly dying, worrying automotive component suppliers and their employees.

Source: marketwatch.com