Home > GM asked for extra $80m a year to save Holden

GM asked for extra $80m a year to save Holden

article image Holden wanted an extra $80m a year to continue manufacturing.

General Motors asked the Federal Government for an extra $80 million in subsidies a year before making its decision to stop car manufacturing in Australia in 2017.

According to the Australian Financial review, the figure of $80 million would have been on top of the $40 million it was going to get from the Automotive Transformation Fund and the $275 million that had been promised for seven years by the federal and state governments.

If it had been granted, the extra funding would have meant the company would have received an average of $160 million a year. 

According to the Financial Review, Holden made the request for the money at a meeting in Adelaide on October 2. Holden managing director Mike Devereux, federal Industry Minister Ian Macfarlane, South Australian Premier Jay Weatherill and his Manufacturing Minister, Tom Kenyon were at the meeting.

Meanwhile, according to the Herald Sun, the government is likely to turn its attention to Toyota in an effort to save the industry.

"I deeply regret for the last three months, which is as long as we have been in government, we haven't been able to hold Holden," Mr Abbott told reporters in Canberra on Thursday.

"But the fact is there was already money on the table.

"The challenge now is to ensure, as far as we reasonably can, that Toyota stays and that is what we are working on."

As federal politicians continue to argue over who is to blame for Holden’s demise, Holden has dismissed reports in a News Corporation newspaper that it did not bid to supply 'blast-proof' vehicles for Australian government VIPs.

The SMH reports that, according to confidential government documents, the Holden Caprice was recommended by the Attorney-General's Department last year as the preferred option for the fleet.

Holden viewed the claim as an attempt by some government ministers to show the public that the company was not committed to Australia.

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