10 Jan 2012

GM considering Holden Australia shutdown

11:49 am on 10 January 2012

US parent company General Motors is considering the possibility of closing Holden's Australian operations, South Australia's premier says.

The premier, Jay Weatherill, Federal Industry Minister Kim Carr and Holden managing director Mike Devereux held talks with GM chief executive Dan Akerson in Detroit overnight.

Mr Weatherill says he strongly urged GM not to shut down its Australian arm but concedes the option was one of several being considered by the company.

"The truth is that car making is a global industry, so the future for Holden in South Australia and importantly the components suppliers in South Australia will involve us making sure that we've got a secure place in that global industry," he told the ABC.

Mr Weatherill said the state and federal governments may have to prop up the industry in the short-term to ensure its long-term survival.

Holden's Elizabeth plant in South Australia employs more than 2,500 workers.