Holden safe despite US problems: govt

The federal government is optimistic car manufacturer Holden will be "safe", even as
its parent General Motors (GM) faces the prospect of bankruptcy.

Holden Australia is a subsidiary of the US-based car giant, which is expected to
file for bankruptcy and accept a plan by the Obama administration that would put
nearly three-quarters of the company under state ownership.
Industry Minister Kim Carr predicts the Australian-based operations will weather the
storm buffeting its owner.
"I remain very optimistic that Holden will weather the global financial storm and
emerge stronger," he told AAP through a spokesperson.
Senator Carr said recent restructuring had made the company able to withstand
whatever happened overseas.
"Holden has already undergone significant restructuring," he said.
"The cooperative efforts of management, workers and the Australian government have
put the company in a good position to deal with whatever General Motors may announce
in the coming days.
"I expect that Holden will be safe even if General Motors do go in Chapter XI
bankruptcy.
"It is important to remember that Chapter XI bankruptcy in the US is very different
to bankruptcy in Australia. It does not mean GM is being liquidated or is going out
of business."
Earlier this month, Holden announced it would switch to a single shift at its
assembly operations in Adelaide, helping to save workers' jobs and the facility
survive the global economic downturn.
Senator Carr says the production of a new four-cylinder vehicle in Australia means
Holden is a relatively high priority in GM's global operations.
"GM's February restructure statement noted that Holden Australia was seen as
`viable' due to Australian government support for the new four-cylinder
fuel-efficient car," he said.