The political scene in Australia will determine whether or not General Motors will invest any more money into manufacturing in the country. And with elections happening September 7, a decision could be swift according to a Bloomberg report.
Current Prime Minister Kevin Rudd, who is running for re-election, has set aside $5.4 billion AUD ($4.8 billion USD) for domestic car manufacturing until 2020 and pledged another A$700 million during the campaign. Meanwhile, opposition leader Tony Abbott wants to cut A$500 million from the subsidies by 2015. Polls also putt Abbott in the lead before the actual election. Obviously, GM would prefer those subsidies to stay in place, as the current rhetoric from the automaker is that it needs as much subsidies as possible to keep manufacturing Holden vehicles in the country.