Port Melbourne's Holden engine plant's future is uncertain, with chairman Mike Devereux only committing the company to the facility until 2017
The high Australian dollar and the demand for greater fuel efficiency by car makers have made the decade-old factory's future uncertain. It makes V6 engines and more and more cars are using four-cylinder propulsion.
"You would need to retool that engine plant almost fully to be able to build something other than that V6," Devereux told the Sydney Morning Herald. Any conversion would be expensive.
"A significant amount of capital investment would be required to upgrade that engine plant."
Holden has guaranteed local production of its vehicles.
The plant exports 50,000-plus engines a year and supplies for the locally-produced Commodore. A closure would threaten the jobs of 400 employees.