Carbon Tax: Holden CEO warns future of his company is under review

Car manufacturers are now being forced offshore because of the Federal Government’s carbon tax, claims Shadow Industry Minister Sophie Mirabella.

Holden CEO Mike Devereux warns that the future of his company and its 4,700 jobs in Australia is now under review as a result of the looming carbon tax.

Holden’s parent company, General Motors, is believed to be weighing up the risks of staying in Australia. According to a report in Australian Financial Review, GM Holden’s Australian-based future is in doubt because of sovereign risk issues following cuts to the government’s green car assistance scheme.

The article was based on a podcast hosted on Ross Greenwood’s website, containing an interview with Devereux that aired on 2GB.

“It’s extraordinary that we should now learn there was no consultation and not even so much as a phone call to the car industry before the Government broke close to $2 billion worth of promises to it earlier this year," said Mirabella. The Government had earlier demanded access to detailed long-term business plans from the carmakers as a condition of establishing those policies.

The Liberal Opposition is pushing for the Government to ditch its carbon tax – which, it claims, will be the final straw for the many Australian businesses that are already struggling against international competition.

Read more:
Holden manufacturing executive calls for support
Tony Abbott says carbon tax is “dumb”
Holden’s positive 2010 profits a ‘vindication’ of the Government’s support

Talk Back: What will happen to Australia’s automotive manufacturing sector if Holden were to pull out of Australia?