It Would Cost Holden $600 Million If It Wanted To Pack Up And Stop Making Cars In Australia

Holden CEO Mike Devereux: Getty Images

The Australian has reported it would cost Holden $600 million to shut its Adelaide production plant, as the company goes through fresh talks with the government for taxpayer assistance.

Citing sources familiar with the negotiations, the report says $600 million is what Holden would probably have to pay in redundancies and other decommissioning costs if it shut down its Elizabeth factory in Adelaide.

The figure is key to the talks as it would help the car maker decide whether to accept federal funding to offset its losses, or if it would just be cheaper to call it a day and shut the factory down.

New industry minister Ian Macfarlane is engaged in negotiations with GM Holden, along with SA Premier Jay Weatherill on potential further assistance, after the former Labor government already committed $275 million to the automotive industry.

There’s more here.

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