Putting brakes on Holden’s financial support

Decisive action has been taken to ensure General Motors doesn’t see another cent in taxpayer support, after its decision to wind up the Holden brand in Australia.

Minister for Industry, Science and Technology Karen Andrews said over a million dollars in payments have been stopped, after GM Holden was deregistered from the Australian Government’s Automotive Transformation Scheme (ATS).

“I, like most Australians, was extremely disappointed at GM Holden’s decision to walk away from our country, their local workers and loyal dealers,” Minister Andrews said.

“Australian taxpayers have given this multi-national company more than $2 billion in financial assistance over recent years, and it still decided without consultation to wind up the Holden brand in Australia.

“I think you’d be hard-pressed to find a single Australian who thinks GM Holden should receive financial support from the Federal Government in the same year they announced they’re leaving our shores.”

The ATS reimburses eligible investment in research and development, and plants and equipment. Payments are made in arrears.

The decision to deregister them was made on the basis that GM Holden’s activities will no longer encourage competitive investment and innovation in the Australian automotive industry and place the industry on a sustainable footing.

It reflects the loss to automotive research and development in Australia, including GM Design Australia and GM Holden Engineering teams, and the closure of GM Holden’s Lang Lang Proving Ground and Port Melbourne design studio.

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