Holden says carbon tax adds to car manufacturing woes

Holden boss Mike Devereux says that the carbon tax has made it more difficult to continue manufacturing cars in Australia.

As reported in the Australian, he said that the tax is one of the factors which make the cost of manufacturing automobiles higher.

"There is no question that a tax on electricity, in making it more expensive in input costs, makes it more difficult for me to make money building cars," he told ABC radio in Adelaide.

He added that such costs mean that Holden has to look for “that money in other places”.

As such, the company is in discussion with workers to change work practices and cut wages.

Meanwhile, AAP reports that Industry Minister Greg Combet blames the opposition for the uncertainty in the automotive manufacturing industry.

Combet pointed to the coalition policy to reduce government assistance to the industry by $500 as being a major problem.

"It will close Holden down if the coalition is elected," he told Fairfax Media.