Holden’s managing director Mike Devereux has not announced a decision on Holden’s manufacturing future in Australia at a Productivity Commission hearing this morning.
Speculation that the car maker was planning to announce that it would close its Port Melbourne and Elizabeth factories has intensified recently. The ABC reported last week that senior federal government ministers claimed they were told by Holden that it would stop making cars in Australia.
This will not end the guessing about Holden’s future, with the government unwilling to provide further assistance to automotive companies and reports that parent company General Motors has already made a decision to pull the plug on Holden.
The effects of such a decision are predicted to be disastrous for the economy. Toyota would likely follow Holden and Ford – which will close its Australian factories in 2016 – and give up on making cars in Australia.
The effect on South Australia alone would be a loss of 13,200 jobs, according to a recent study by Adelaide University economists.
"The reality is that many workers need to recognise that they should really be looking for future employment now - they shouldn't be waiting for an announcement," he said.