Posted: 12:30 pm on 11th July 2013

According to The Australian Holden want another $60 million in federal funding to continue manufacturing in cars in Australia.

South Australia’s Labor government yesterday warned the carmaker could announce the closure of its northern Adelaide plant by the end of the year, with Holden understood to be demanding more than the $275m it was promised last year to secure its operations in Australia until 2022.

Under the $275m co-investment package announced by Julia Gillard in March last year, a $215m grant and $60m from the South Australian and Victorian governments was committed to secure a $1 billion investment from Holden to build two next-generation vehicles at the Adelaide plant.

Now Holden are asking for another $60 million from state and/or federal governments to honour their agreement to continue making their two home-grown models, the Commodore and the Cruze.

Subsidies to car manufacturing companies look increasingly wasteful since Ford announced they would be closing down manufacturing plants.

Earlier this year, Holden revealed it had received $2.17 billion in assistance from the federal government over the last 12 years. That came after announcements at the end of 2012 that another 500 jobs would be shed to control costs.

At the same time, Aussies just don’t want Holden’s cars. Sales for the Commodore were down 25% in 2012.

Another $60 million to Holden would be another bucket load of cash thrown down the proverbial black hole. Your tax dollars at work!

$360k for a cup of coffee? | CIS Waste Watch says:

[…] at WasteWatch, we have already brought you the good news about the various Australian governments anxious to pour millions of dollars into Holden’s hungry […]

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