Holden employees in $2.5m stolen parts racket

AUSTRALIA'S largest car manufacturer has been the victim of an unprecedented, multimillion-dollar theft racket involving some of its own employees.

AUSTRALIA'S largest car manufacturer has been the victim of an unprecedented, multimillion-dollar theft racket involving some of its own employees.

The Sunday Mail can reveal more than $2.5 million in major car parts - comprising hundreds of V8 motors and transmissions - have been stolen from the GM Holden plant at Elizabeth.

Police believe the stolen motors and transmissions have been sold both through car clubs locally and along the east coast of Australia and on internet auction sites such as eBay.

The hi-tech V8 motors - which are fitted to the latest model VE Commodores - retail for around $10,000 each through Holden dealers but were being sold for between $1500 and $2000 by the  thieves on the black market.

Police have been conducting a major investigation into the racket since January, so far questioning several workers employed at the GMH plant. Numerous properties linked to them have also been raided.

Organised Crime Investigation Branch officer-in-charge Detective Superintendent Peter Harvey confirmed the operation, codenamed Echidna, was "well under way".

While he would not comment on specifics, it is understood the investigation was launched after Elizabeth CIB detectives uncovered a V8 engine, later found to be stolen from the Elizabeth plant, at a northern suburbs address during an unrelated inquiry.

The thefts have highlighted a major deficiency in GMH's inventory handling system at Elizabeth, with the  carmaker unaware of the scale of  the thefts until SA police alerted the company.

Sources said the investigation had so far recovered several stolen V8 engines, and automatic and manual transmissions from locations in the Riverland.

Detectives have also travelled interstate as part of their investigations, with several suspects in Queensland of particular interest.

It is understood detectives have discovered how the engines and transmissions were removed from the plant, which will produce 90,000 cars this year and is equipped with security checkpoints for trucks and vehicles entering and exiting.

This has been the focal point of the investigation to date.

Sources said there was "no effective tracking system" to ensure that each of the major components delivered to the plant actually were used and this had enabled the thefts to continue until detected by police.

"There is little doubt there have been dishonest people working at the plant who have been either directly responsible and more than likely, others who have been complicit in this activity to facilitate it," a source said.

GMH received a $275 million bailout from the state and federal governments in March to ensure its operations remained opened at Elizabeth. GMH corporate affairs manager in SA Sean Poppitt declined to comment when contacted.

"It is an ongoing investigation and we are not at liberty to discuss any details of it as yet," he said.

"We are co-operating fully with SA police and because it is ongoing, unfortunately that is all we can say at this point."

Det Supt Harvey said "the operation is certainly very complex".

"I am really pleased with the progress so far, but there is more work to do," he said.

"I can say that those involved can anticipate some very close attention from police, but we are also happy to talk with anyone who would like to come forward with information that can assist."

[e-mail]