GM Holden Chief Defends Oz Government’s Fiscal Help

GM Holden says government assistance for the global auto industry is a fact of life and Australia is no different from anywhere else.

Chairman and Managing Director Mike Devereux defends the allocation of government funds to the General Motors subsidiary.

GM Holden recently received A$275 million ($283.4 million) from the federal, South Australian and Victorian state governments to ensure the future of its local operations through 2022. The deal includes a commitment from the auto maker to develop and build two new vehicles.

The Australian Associated Press quotes Devereux as saying this will inject A$4 billion ($4.1 billion) into the country’s economy.

“Co-investment, government assistance, is a fact of life for every auto maker in every country in the world,” Devereux says, “whether it is a tariff wall, whether it is a central bank systematically weakening its currency or whether it's co-investment or government assistance to attract billion-dollar investments.”

South Australian Premier Jay Weatherill is quoted as saying the co-investment program secured the long-term future of GM Holden in his state.

“On anybody's reckoning, that is a great deal for this state and a fantastic deal for this company,” he says.

Devereux does not say whether GM Holden requires further government assistance. He says the auto maker is in constant contact with its “government partners” but adds he cannot predict future economic conditions.