Holden has done an about face and decided to keep its Lang Lang proving ground after it ends its Australian manufacturing operations by 2017.
AAP reports that about 70 staff will be employed at the site, mainly to retune imported cars for Australian driving conditions.
Speaking at Holden's headquarters today, General Motors International Operations president Stefan Jacoby said that some work for GM's international engineering team may also be carried out at the Victorian facility in Lang Lang.
"As we continue to plan for the company's success now and in the future, it is important that Holden and its vehicles retain their Australian DNA," Jacoby said.
"It will be involved in global engineering development as well, but mainly for fine-tuning for these vehicles which we will introduce for the Australian market."
He added that the company plans to continue manufacturing all current models in Australia until 2017 and to employ its current workforce of about 2900.
The news comes as fears begin to surface that Ford may end its Australian manufacturing operations before its planned departure date of October 2016.
According the Australian Manufacturing Workers’ Union vehicle division, of the three car makers, Ford’s position is the most uncertain.