Governments announce $275 million Holden subsidy
The Federal, Victorian and South Australian Governments have announced a $275 million co-investment in Holden to keep its operations in Australia
Plagued by a steeply rising Australian dollar and weak domestic demand, the beleaguered car manufacturer has been pushing for government assistance to keep its Australian operations going. Under the agreement, Holden will spend $1 billion into its car manufacturing operations in Australia, and to ensure its next two generation vehicles will be cheaper to run and meet environmental standards.
The Prime Minister said the Federal Government’s contribution would be $215 million, funded under the existing $5.4 billion New Car Plan for a Greener Future.
The South Australian Government will contribute $50 million, with the Victorian Government contributing $10 million.
“This funding is not a hand-out – 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 stressed.
Holden has estimated that the new investment package will return around $4 billion to the Australian economy.
“The automotive industry employs 55,500 people across every State and the ACT and supports around 200,000 additional jobs nationally,” Ms Gillard said.
Also announced was the Federal and Victorian Automotive New Markets Initiative, with the Federal Government contributing $35 million.