Holden factory closure sparks finger pointing

Following today's closure of the Holden factory in Elizabeth, South Australia, the federal opposition and related unions have directed blame for the end of the local automotive manufacturing industry towards the Coalition government.

Holden's exit follows that of Toyota earlier this month and Ford last year, with 91 years of mass car manufacturing in Australia coming to an end after the Elizabeth plant became the last domino to fall.

In a joint statement, federal opposition leader Bill Shorten, shadow industry minister Kim Carr and shadow assistant manufacturing minister Nick Champion said the “tragic” end was avoidable for Holden manufacturing employees and their families, automotive supply chain companies and their employees, and the advanced manufacturing industry.

“When Labor was in government, Holden had plans for two new models and Toyota’s export business was thriving. Both companies wanted to continue making cars in this country,” the statement read.

“Instead the Liberals bullied the carmakers and took to the 2013 election a policy to cut assistance by $500 million.

“The Liberals actions have had devastating consequences for the 1000 remaining workers at Holden, their families and their communities.

“The ramifications for the state of South Australia will be immense – with a hit to the economy and thousands of jobs under threat.

“The Liberals must do more to support auto manufacturing firms in transition and ensure retrenched workers are given greater support to secure employment.

“The Liberals’ response has been completely inadequate, with their piecemeal programs both oversubscribed and underfunded.”

Speaking in parliament on December 10, 2013, then federal treasurer Joe Hockey pleaded with GM Holden executives to “come clean with the Australian people about their intentions” regarding whether the brand was committed to manufacturing cars in Australia.

This request followed confirmation that Holden had been handed $1.8 billion in support from the government between 2001 and 2012.

The very next day, Holden revealed operations at its Elizabeth and Port Melbourne factories were to shutdown.

South Australian premier Jay Weatherill said in a statement that today's events were harrowing for the state, and added that his mother worked in the car parts sector, while his uncle was a Holden employee for 47 years.

“I would like to say thank you, on behalf of all South Australians, to those who have worked in the automotive manufacturing industry over the past 60 years,” he said. “Your dedication and commitment to making quality cars and car components in this state, will not be forgotten.

“All automotive workers should hold their head up high and be very proud of what they’ve achieved. They have created a lasting legacy, with some of the best cars in the world, made right here in South Australia since the early 1960s.

“While South Australia may no longer make cars, we will continue to stand with the workers, supply chain companies, and their families, to recognise their contribution to such a significant industry in our state.”

South Australian minister for automotive transformation Kyam Maher thanked automotive employees in the state for their effort and hard work, while adding that advanced manufacturing still has a future.

“The story of Holden is the story of South Australia. Where we are now we owe to the generations of automotive workers in this state,” he said. “Advanced and high-tech manufacturing has a bright future in South Australia because of all Holden and automotive workers have achieved.

“Despite the challenge Holden’s closure presents, automotive workers should rest assured the State Government will continue to stand up for them and all South Australians to create new work opportunities in our state government.”

Acting federal industry minister Michaelia Cash did not comment on the Holden closure following a statement she already issued after Toyota's shutdown on October 3.

Prime minister Malcolm Turnbull told 3AW’s Neil Mitchell about his sadness regarding the shutdown, but when questioned by Mr Mitchell if the government was at fault, the prime minister quoted former GM Holden chairman and CEO Mike Devereux’s 2013 statement that the closure resulted from a “perfect storm of negative influences”.

“The car industry had $7 billion of subsidies over the decade or so, decade or more, prior to this closure,” Mr Turnbull added. “We’ve provided enormous support for the car industry and enormous support for the transition. But the critical thing to do, is to be creating new jobs.”

Australian Manufacturing Workers’ Union South Australia secretary John Camillo said Holden employees were without work now because of the federal Coalition's actions.

“When those doors close at Holden, the car industry will close forever,” he said. “History will remember this as the greatest betrayal of blue-collar workers by the Coalition government. Tony Abbott, Joe Hockey and Malcolm Turnbull ought to be ashamed of themselves.

“These job losses will hit hard in Holden’s heartland at a time when the unemployment rate in Adelaide North is the highest in the state.

“Workers here, and the local community, know that South Australia can’t afford to lose any jobs.

“It is the job of Government to make sure Australians are kept working, but the Coalition couldn’t care less about Australian families who will now have to bear the brunt of the decision to pull the rug from under the auto industry.”

The Federal Chamber of Automotive Industries (FCAI), the body that represents Australia’s car manufacturers and importers, released a statement congratulating Holden’s handling of the shutdown over the past four years.

“The closure of the Holden factory today will no doubt be an emotional and difficult day for the manufacturing employees, and our thoughts go out to those families affected,” the statement read.

“This closure is the culmination of a decision made several years ago, and Holden has been managing the closure process and the transition in a careful, thorough and respectful way.

“Beyond mass-produced local manufacturing, Australia’s motor vehicle industry remains vital and dynamic, employing tens of thousands of people and providing a value-added impact to the Australian economy of some $17.5 billion per annum.”

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