Holden’s positive 2010 profits a ‘vindication’ of the Government’s support: Carr

GM Holden’s $112 million profit in 2010 is “a resounding vindication” of the support the Government has provided to the automotive manufacturer throughout the year, according to Innovation Minister, Senator Kim Carr.

According to Senator Carr, the Government’s $5.4 billion ‘A New Car Plan for a Greener Future’ plant has ‘transformed’ the Australian automotive industry since its inception in 2010.

Senator Carr said the result was made possible by “hard work under a partnership with Holden, the Federal and State Governments, unions and workers and was testament to the resilience and creativity of the Australian automotive industry.”

“This return to profitability is a $320 million turnaround that shows that the New Car Plan is working,” Senator Carr said.

“Not only are domestic vehicle sales for Holden up by 11 per cent for 2010 compared with 2009, but vehicle exports, to Brazil, the Middle East, New Zealand, South Africa and North America also underwent a 13 per cent boost.

“Australian engine exports also rose by 25 per cent and, coupled with greater demand for engine products, this led to a second production shift at Port Melbourne. The reinstatement of a second shift at Elizabeth was also a fantastic result for the company and its loyal workers.

“The fact that there are excellent prospects for further export growth at a time of a strong Australian dollar further underscores our faith in the company and the industry.”

The Government granted $149 million to Holden last year to re-build its Cruze production line

Prime Mininster Jullia Gillard and Senator Carr both visited the Holden site earlier this year when Holden rolled-out its first line of locally-made Cruze small cars, representing the first small car of its kind made in Australia.

Senator Carr said the Holden Cruze had the potential to be exported as a police vehicle for the North American market.

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