Holden cuts plant shifts
The $500 million plant builds the V6 for the Adelaide-built Commodore as well as GM-Holden’s export markets.
But the Adelaide production cuts announced yesterday are expected to have a knock-on effect for the engine plant as well as Victorian-based component suppliers.
“There is no doubt there will be an impact,” GM-Holden spokesman, Scott Whiffin, said.
“But what that will be we don’t yet know.
“We are measuring the situation.”
The Industry Minister, Senator Carr, said the government would assist individual suppliers and work with unions to help alleviate any problems.
He admitted that there were “serious problems with regard to liquidity for a number of firms”.
“There are also serious issues with workers about job security,” he said.
“We’ll talk to individual firms and work with companies and unions to ensure they move through this process as quickly as possible.”
GM-Holden has already announced that its four cylinder engine production at Fishermens Bend would cease at the end of this year, leaving about 400 workers without jobs.
Senator Carr said he remained confident GM-Holden would rebound by 2010, particularly when Holden’s new four-cylinder sedan started production later this year.
Carr said he was confident that parent General Motors would not pull out of the new four cylinder car production because of its own economic woes.
“I’m very confident that the plan will proceed,” he said.
Senator Carr said GM-Holden’s decision is “about jobs is about keeping people on the payroll”
“It’s about maintaining capability and ensuring the livelihoods of Australians.
“Everyone would prefer that these actions were not necessary but they will help preserve long-term employment at Holden.”
GM-Holden’s decision to reduce pay and working hours for its 3150 plant workers at its Elizabeth plant comes as new vehicle sales slumped 17 per cent last month.
The VFACTS industry figures show that 75,650 new vehicles were bought last month, down 15,635 vehicles for the same month last year.
Despite being the best-selling vehicle last month, Holden Commodore sales were down to 3544 for the month as buyers switch to smaller, fuel-efficient cars.
However, despite the change in buyer patterns, GM-Holden chairman, Mark Reuss, said yesterday the company would continue to build its V8 Commodores despite rumours that the engine faced the axe.
“We’re going to keep making V8s,” he said.
GM-Holden has sold 9188 vehicles this year, down 20 per cent compared to the first three months last year.
Commodore sales are down 13 per cent for the year.
When the new VE Commodore was launched in 2006 the company expected to sell around 5000 a month.
The V6 engine plant was designed to build up to 900 engines a day or 240,000 engines a year.
Last year 99,500 V6s were built, of which 28,000 exported.
