Our beloved Australian friends at Holden’s Port Melbourne plant could be in search of new jobs within the end of the decade. One of the main reasons is that the enthusiast’s family favorite, the Commodore, is to be phased out in lieu of a wimpy, more economical machine (this translates to a four-cylinder small crossover). Today, the $400 million AUD plant is dedicated to building the Commodore’s V6 engine, and Holden has so far announced no plans to retool the plant for use beyond the current Commodore’s product life cycle in order to accommodate a new engine line. But is it worth it to do so?
According to EchoNews, GM Holden chairman and managing director Mike Devereux tells, “You would need to retool that engine plant almost fully to be able to build something other than that V6,” he said. “A significant amount of capital investment would be required to upgrade that engine plant.”
Assuming this tragic shutdown does actually happen, it would affect 400 blokes. This is not the only factory that would hinder the region, as Ford and Toyota have already implemented cuts to their facilities.
Holden recently committed to spending more than a billion dollars in return for $275 million AUD in Australian taxpayer dollars to guarantee local vehicle production until at least 2022. Unfortunately, the Melbourne engine plant is reported to not be included in the contract signed with the Australian Federal Government, but considering it’s only 10 years old, it seems foolish to leave the facility by the wayside.
However, we’ve been assured that this plant will still be churning out powerplants for the aging Commodore until 2017, which is when the vehicle will be put to pasture.Google+