Just a general interest story.
I'm in two minds about the benifits of this and so am undecided. Our hearts say dont let Holden die but is that really a reality. Is it just full circle and it returns to where we see General Motors (Australia) like pre-1931 and Holden disappears or Holden assembles Chevrolets here like pre-1968.
On one hand its terrific that industry stays here and the eventual input by GM stimulates the economy. Lots of little businesses rely on this type of investment.
On the other side, are we just throwing our money into a industry that we have no hope of competing in on a global scale and should look elsewhere to generate wealth.
Mauser
http://www.dailytelegraph.com.au/bus...-1226307018498
Holden gets $275m from three governments
• From: AAP
• March 22, 201210:51AM
A $275 million investment in Holden's vehicle making operations in Australia has been officially announced.
In return for the money, Holden has agreed to inject more than $1 billion into vehicle manufacturing in Australia and to make two next-generation models.
Under the partnership, Holden will make cars in Australian until at least 2022.
The Federal Government's contribution is $215 million, under the existing $5.4 billion so-called new car plan for a greener future.
"This funding is not a handout. It is a strategic investment that will boost our economy, foster innovation, build new business opportunities and promote adoption of new fuel saving and safety technologies," Prime Minister Julia Gillard said in a statement.
Holden said two new types of vehicles would go into production in Elizabeth in South Australia.
It estimates $4 billion will be injected into the economy over the life of the new vehicle program.
As well, the Federal and Victorian Governments are going to provide $35 million to help other companies in the automotive supply chain.
Ms Gillard said the co-investment between the three governments and Holden addressed the risk in January that the company could have closed its operations, as a strong Australian dollar affected its viability.
This would have been a "knock-out" blow for the manufacturing sector.
"The future of General Motors is secure in this country for the next decade," she said.
"This is a great day for Australian car making."
The deal also supported secondary jobs in key automotive component manufacturers that supply parts to Holden, many of which are in regional Australia, the Federal Government said.
"It will save thousands of manufacturing jobs," industry minister Greg Combet said.
The automotive industry employs 55,500 people across every state and the ACT and supports around 200,000 additional jobs nationally.
SA Premier Jay Weatherill said Holden played a crucial role in the state, which will contribute $50 million, and workers could feel more secure about their jobs.
"We strongly believe South Australia and this nation need a strong manufacturing industry," he said.
He said the industry needed to grow off a strong base and that Holden's presence was crucial.
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