The end of manufacturing for Holden at Elizabeth would be disastrous for SA, costing $1.24 billion and 13,200 jobs according to economic modelling from the Adelaide University.
ABC’s 7:30 last night cited updated figures by Associate Professor John Spoehr claiming that the economic impact would be twice that predicted by research commissioned by Federal Chamber of Automotive Industries and published this week.
Comparing a possible end of Holden’s manufacturing with the closure of Mitsubishi’s Adelaide auto factory in 2008, Spoehr said the impact on local employment would likely be much worse.
"Since the GFC (global financial crisis) we've lost around about 30,000 jobs in manufacturing in South Australia," he told the ABC.
"So it's much less likely that people who lost their jobs through the closure of Holden would be able to find alternative manufacturing jobs."
TI Automotive, a supplier located close to the Elizabeth factory, said its business would end if Holden left.
"This plant exists entirely to serve Holden," said Greg Lowe from TI.
"So if Holden's not here, we won't be here either... it's that simple."
The federal government is currently waiting on a Productivity Commission report into automotive industry subsidies before deciding whether or not to meet Holden’s request for more assistance.
Industry minister Kim Carr has accused the Coalition of “playing chicken” with the car company, and “playing with the lives of up to 200,000 Australians that depend upon this industry."
The Productivity Commission’s interim report is due on December 20.
Meanwhile, News Corp reports that Stefan Jacoby, head of international operations for Holden’s parent company General Motors, is scheduled to visit Holden this month.