Taxpayers likely to save Holden jobs

(AAP) The decision to pump billions into the car industry will help Holden workers keep their jobs following the loss of a major US export deal, industry and the federal government say.

Holden's US parent company General Motors (GM) has decided to kill off the 83-year
Pontiac brand, meaning Holden will stop producing cars for North American motorists
from 2010.
It's a significant blow to Holden's export trade with more than 36,000 cars shipped
to the US last year.
But Holden insists the decision to phase out the G8, a restyled version of the
Commodore, won't threaten jobs at its Elizabeth plant in Adelaide.
"G8s are assembled at our plant at Elizabeth where we have been modifying our
production volumes and we will continue to do so," Holden spokesman Scott Whiffin
said.
"Notwithstanding the fact that this has only just been announced, we don't envisage
there will be any job losses at Elizabeth as a result of this decision."
Industry Minister Kim Carr said the government's $6.2 billion car industry program
had ensured the stability of the sector, and Holden jobs.
"I want to reassure the hundreds of thousands of workers in the Australian car
industry, and especially those in Adelaide today, that the government is working
closely with the automotive industry to ensure we get through this difficult patch
and emerge stronger," Senator Carr said in a statement.
Federal Chamber of Automotive Industries chief executive Andrew McKellar agreed the
assistance package had helped prevent the loss of Holden jobs.
The package includes a $1.3 billion green car fund giving manufacturers $1 for every
$3 they spend developing a fuel-efficient car.
From that, Holden has accepted $149 million to build a four-cylinder car from next
year.
Mr McKellar said the package meant Holden could keep on its workers to build the
small car rather than retrench staff following the end of the US export program.
"It will support those jobs," he said.
Senator Carr said GM's decision to kill the Pontiac brand was disappointing but not
unexpected.
"Sales of the Pontiac have not been as brisk as hoped, as a result of the global
economic crisis," he said.
Opposition Leader Malcolm Turnbull said the government must ensure no jobs were lost
in Australia as a result of the lost export deal.
"The challenges that General Motors faces in the United States are well known and
well understood, but every attention should be given by the government to ensuring
that there are no job losses ... from Holden here in Australia," he said in
Adelaide.
Three weeks ago, Holden announced it was axing the afternoon shift at its Adelaide
factory.
The company will switch to a single shift in May with two crews working one week on
and one week off on reduced pay to build about 310 cars each day, down from a peak
of more than 600.
And in early January, Holden announced it would not be exporting an Australia-made
sports ute to the US.
Mr McKellar said Australia's vehicle makers had prepared to cut production volumes
because of the global downturn.
"There's evidence that all major markets have incurred some major impact," he said.
"My understanding is the industry, more broadly, has positioned itself for those
kind of developments."
Australia exported 51 per cent of the 300,000 cars it made in 2008, Department of
Foreign Affairs and Trade figures show.