Holden announces plans for off shore manufacturing

ROLLING COVERAGE: Australian car manufacturer Holden has announced plans for offshore manufacturing of it’s iconically Australian vehicles.

Several press conferences have been held this afternoon, join The Global Panorama below for rolling coverage. We’ll be posting and tweeting the latest from the factories and Canberra below.

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More to come.

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4.39PM (AEST):  Highlights from South Australian’s Premier, Jay Weatherill’s press conference in Adelaide:

‘PM Tony Abbott and his government have shown a callous disregard for many South Australian workers and their families.’

‘Devereaux set out business case and the Federal govt. ignored him.’

‘PM Tony Abbott and his government have shown a callous disregard for many SA workers and their families’

‘This is a policy choice made by the federal Liberal govt’

‘PM Abbott and his government have shown a callous disregard for many South Australian workers and their families.’

‘Mr. Devereux made it very clear he had all the information he needed yesterday.’

‘The Federal Government will have a massive price to pay for this decision – which is their condition.’

4.26PM (AEST): Highlights from The Labor Party’s press conference in Canberra:

 

3.26PM (AEST): Highlights from Australian Manufacturing Worker’s Union press conference:

Highlights from Australian Manufacturing Worker’s Union presser:

‘It is now highly likely that Toyota will leave Australia, in fact it’s almost certain.’

’50,000 workers will be losing their jobs because of the decision by General Motors today’

‘[Workers] love working in this industry. They leave very quickly or stay for a very long period of time.’

‘It will devastate SA, and to a lesser extent Melbourne.’

‘The close down date for engine operations will be 2016 – 2017.’

‘The blame for this is solely the Abbott government.’

‘My heart,’ – apologises, walks off. Stares out,walks back half a minute later.’

2.35PM (AEST): Victorian Premier Denis Napthine said it was a ‘sudden decision’ from Holden to leave Australia.

Holden General Manger, Mike Devereaux is expected to make a media conference at 3PM AEST. We’ll bring you the highlights here LIVE.

2.32PM (AEST): Statement by Holden GM: ‘As part of its ongoing actions to decisively address the performance of its global operations, General Motors today announcedit would transition to a national sales company in Australia and New Zealand. The company also said it would discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017.

“We are completely dedicated to strengthening our global operations while meeting the needs of our customers,” said GM Chairman and CEO Dan Akerson. “The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”

As a result of the company’s actions, approximately 2,900 positions will be impacted over the next four years. This will comprise 1,600 from the Elizabeth vehicle manufacturing plant and approximately 1,300 from Holden’s Victorian workforce.

Holden will continue to have a significant presence in Australia beyond 2017, comprising a national sales company, a national parts distribution centre and a global design studio.

With the decision to discontinue vehicle and engine manufacturing in Australia by the end of 2017, GM expects to record pre-tax charges of $400 million to $600 millionin the fourth quarter of 2013. The charges would consist of approximately $300 million to $500 million for non-cash asset impairment charges including property, plant and equipment and approximately $100 million for cash payment of exit-related costs including certain employee severance related costs. Additional charges are expected to be incurred through 2017 for incremental future cash payments of employee severance once negotiations of the amount are completed with the employees’ union. The asset impairment charges will be considered special for EBIT-adjusted reporting purposes.’

 

 

 

Image Courtesy: WikiMedia