GM Holden Chief: Government’s Turn to Help Industry

GM Holden says its workers have made concessions to keep local vehicle production in Australia, and now it’s up to the federal government to devise a clear and consistent policy for the industry.

The General Motors subsidiary says its workforce voted by a strong majority to accept changes to its contract that will save the auto maker A$15 million ($13.8 million) a year.

Chairman and Managing Director Mike Devereux says Australians consistently make GM Holden’s locally produced Cruze and Commodore models two of the top 10 cars sold in the country.

“We are clearly producing the types of cars that Australians want to buy,” Devereux says in a statement. “But Holden has to be globally competitive, and so does the country’s industry policy. As a local manufacturer, Holden is asking for a fair go. Australia must be able to compete fairly on the world stage.

“We need clear, consistent and globally competitive government policy to help secure a long-term future for automotive manufacturing.”

Devereux says the contract changes will generate significant cost benefits for GM Holden’s Elizabeth plant from the time it comes into effect upon confirmation of a next-generation vehicle program for the facility.

He praises workers for approving concessions in their contract.

 “Australia is a high-cost country, not just for making cars but for making anything,” Devereux says . “It was critical that we reduced our costs and delivered flexible and contemporary work arrangements.

“We can’t survive as a local manufacturer unless we reduce our costs by being as efficient and globally competitive as possible. There are some tough measures in this variation, but the unions and our people recognize this difficult situation and have responded in kind.”