Holden boss Gerry Dorizas warned Australia’s car manufacturing industry could shutdown sooner than expected if the Federal Government goes through on its promise to cut $500 million in assistance that was previously promised auto manufacturers and suppliers.
In an interview with Australian media, Dorizas said that without the financial backing from the government, some Australian suppliers “may not make it to the end of manufacturing.” Cars which use certain Australian-made parts, including the Holden Commodore and Cruze, will not be able to be built until the end of their planned model lifecycle if the suppliers don’t survive.
The reason some suppliers may not survive going forward is many made investments in new manufacturing equipment for producing models on-sale now on the condition that they would receive financial backing from the government. Now that Australian car sales are at record lows, suppliers are relying on the funding just to stay open. Dorizas described suppliers as being in “dire straits.”
“The whole industry would like to see the decision (to cut $500 million in industry assistance) reversed,” said Dorizas.
A spokesperson for Industry Minister Ian Macfarlane told News Corp Australia the government was working with the automotive industry to “address the changes” currently occurring in the sector. If the funding cuts do go through, as many as 50,000 jobs could be lost.
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