Knock-on effects of Holden departure predicted to be huge

There are massive concerns within the automotive manufacturing industry about the flow-on effects of Holden’s announcement yesterday that it would cease assembling cars in Australia.

As reported by Manufacturers’ Monthly and others yesterday, Holden managing director Mike Devereux announced yesterday afternoon that Holden would switch to an import-only business from 2018.

Toyota immediately acknowledged there was now “unprecedented pressure” on its business, and the Australian Industry Group noted that there would a massive impact felt at 3,000 or so businesses directly linked to the automotive industry.

Toyota is now the only car manufacturer still in Australia that has not announced that it plans to leave.

According to recent ABS figures, the number of employees in the automotive sector is around 45,000.

The Federation of Automotive Parts Manufacturers President Jim Griffin said the Holden decision would mean a huge blow to the viability of many businesses.

“Ford had already announced manufacturing would end in 2016, with Holden’s announcement, there isn’t enough volume for components locally to make us viable,” News Corp reports him as saying.

“If you cut the trunk down, the branches will come down with it.”

Professor Danny Samson from University of Melbourne told AAP, “If you think that the whole car industry figure that’s been bandied about the last few days is 50,000, then this has got to be of the order of maybe a third to a half of that.”


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