Everything you need to know about what's going on with Holden
HEARD Holden every day in the news this week but still don't know what's going on? Here's everything you need to know but didn't know who to ask.
Manufacturing
Don't miss out on the headlines from Manufacturing. Followed categories will be added to My News.
HOLDEN has hit the headlines every day this week, as reports swirl about whether the car manufacturer will continue to operate in Australia.
The company, owned by Detroit-based General Motors, has been making cars in Australia for 65 years, but ever since Ford announced it would shut down Australian operations, speculation has been rife that Holden will follow suit.
Today Holden boss Mike Devereaux fronted a Productivity Commission inquiry into the industry saying no decision had been made on the future yet.
But as thousands of workers face a summer of uncertainty. Here's everything you need to know about what's going on:
Holden is feeling the brunt of a high Aussie dollar and massive international competition which has had a devastating impact on the local manufacturing industry.
After Ford announced they would close all their Australian factories by 2016, there has been dogged speculation Holden will follow suit, as it's no longer economical to produce cars in Australia.
Subsidies to the industry have averaged $550 million per year for the last six years, the Productivity Commission reports.
Holden now say in order to keep operating they need even more in subsidies. The federal government is deciding whether to continue propping up the industy or let the market decide - a course of action which led Mitsubishi to close its Australian factory in 2008.
The Productivity Commission is evaluating the industry and will submit a final report on March 31, 2014.
What is at stake?
If Holden does pull out of Australia the impact could be massive. A study commissioned by the University of Adelaide estimates 65,000 jobs could be lost with a shock of $4 billion to the economy.
This could rise to more than 90,000 jobs or $8 billion wiped from the economy by 2020 if domestic car manufacturing collapses all together, according to reports.
The bulk of the job losses would be in South Australia and Victoria, with those who supply parts and services to cars also heavily affected.
What will it cost to keep them here?
Holden received $1.4 billion from government programs from 2001 to 2012, according to their submission to the Productivity Inquiry. This includes $153 million worth of assistance each year for the last decade. No doubt an astronomical number.
In return, the company claims it spent $484 million annually on investing and engineering and design and generated $32.7 billion in economic activity through production, wages and tax revenue.
The ratio is allegedly 1:3 of public assistance to investment, according to the car maker, although if they are going to be globally competitive with other countries, Holden wants the additional funds "to be set at appropriate levels and be ongoing".
What about the workers?
"There's not a car on the Australian road that is not subsidised in one way or another by the government that manufactures it," Australian Manufacturers Workers Union National Secretary Paul Bastian said.
"That's because it's a global race for jobs because they're high skilled, high paying jobs."
If Holden does pull out of Australia, there is also speculation Toyota could follow suit.
Already this year about 2,500 Holden workers in South Australia accepted a pay freeze, while Toyota shed 350 employees in early 2012 and offered 100 voluntary redundancies in October.
What will the government do?
The government is yet to decide whether it will continue to support the company.
In the past Abbott has said the government would not provide a "blank cheque" to Holden, and the company owed its workforce, suppliers and the public an explanation about its future.
Labour has accused the government of working against the car manufacturer while Independent senator Nick Xenophon says Tony Abbott will not want to go down in history as the Prime Minister who presided over the death of Australia's automotive industry.
"If you lose Holden, you end up having a collapse in the entire automotive supply chain," he said.
Greens leader Christine Milne is concerned about the potential for "horrendous" job losses, while Labour frontbencher Doug Cameron said the government didn't seem to care about manufacturing.
"Unless we have a manufacturing base in this country, we will end up being a quarry, a farm and a tourist destination and that is not good enough," he said.
Do Australians care?
As politicians and executives debate the future of the company, sales figures show Australians don't have an appetite for locally produced cars.
In November 2013 Australians bought 96,924 new vehicles. Of these, just 5651 were made by Holden, while 3224 were from Ford and 2982 from Toyota.
Instead, nearly 30,000 vehicles where made in Japan, while others came from Thailand, Korea and Germany.
Do you think Holden has a future in Australia? Continue the conversation on Twitter @NewscomauHQ | @Victoria - Craw
###
Warning over mass Aussie skill shortage
Alarm bells have been raised over fears Australia will face a mass skill shortage across key industries, unless slipping education standards are halted.
‘Back on track’: Dutton’s new ad pledge
Opposition Leader Peter Dutton has attempted to show off a softer side to his political personality by debuting a new ad where he promises to get Australia “back on track”.