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Holden rejects Government’s export demand

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Troubled Automaker General Motors Holden has rejected the Coalition government’s plan to enforce car makers to increase exports in return for further government assistance.

According to The Australian Financial Review, Holden says that the plan is not in its interests because Australian-made cars are too expensive to export.

The company pointed to high local production costs and the high Australian dollar as reasons that it would not be able to meet the government’s export targets.

During the recent election campaign the then opposition led by Tony Abbott made it clear that it would take a harder line on assistance to car manufacturers and any further assistance would come with conditions.

According to the AFR, the cabinet is split on the issue. This disagreement from Holden will not make negotiations any easier for Industry Minister Ian Macfarlane.

The government is awaiting a Productivity Commission on the viability of the Australian car manufacturing industry before it finalises its policy.

As AAP reports, Macfarlane said interim findings of the report will be available by Christmas. He said that, when the findings become available, he would be able to assess them with Treasurer Joe Hockey and the cabinet.

Macfarlane said that Toyota wants to continue manufacturing in Australia and he plans to soon hold talks with Ford, in an effort to encourage the company to reconsider its decision to cease all manufacturing in this country in 2016.

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