Inquiry rush to aid Holden
It has given the Productivity Commission just seven weeks, demanding an interim report on the industry by December 20. It wants a final report by March 31.
The deadlines are tighter than those announced by Industry Minister Ian Macfarlane earlier this month, who spoke of an interim report by Christmas and a final report by June.
They would allow the reports to feed into both the budget process and the deliberations of Holden's owner, General Motors, which has indicated that if it is to stay in Australia it needs to make plans by Christmas.
The company is unlikely to announce a shutdown of its Adelaide and Port Melbourne operations until after the South Australian elections in March.
It had promised to keep manufacturing in Australia until 2022 under a $275 million "co-investment" promised by the Gillard and South Australian Labor governments.
The Coalition has not matched Labor's commitment and has promised only to hold a Productivity Commission inquiry before deciding what to do.
Frequently Asked Questions about this Article…
The government is speeding up its inquiry to persuade Holden to continue its operations in Australia. They aim to provide timely reports that can influence both budget decisions and General Motors' plans for Holden.
The government has set a deadline for an interim report by December 20 and a final report by March 31. These deadlines are tighter than initially announced to ensure the findings can be used in budget planning and decision-making by General Motors.
The inquiry's findings will help inform General Motors, Holden's owner, as they decide whether to continue operations in Australia. The reports are expected to be ready before General Motors needs to make its plans by Christmas.
Holden is unlikely to announce any shutdown of its Adelaide and Port Melbourne operations until after the South Australian elections in March, suggesting that political outcomes may influence their decision.
Holden had committed to keeping its manufacturing operations in Australia until 2022, supported by a $275 million 'co-investment' from the Gillard and South Australian Labor governments.
No, the Coalition has not matched Labor's financial commitment. Instead, they have promised to conduct a Productivity Commission inquiry before deciding on any further actions.
General Motors, as Holden's owner, plays a crucial role in deciding whether Holden will continue its operations in Australia. Their decision will be influenced by the findings of the government's inquiry and the political and economic environment.
The inquiry's findings could impact investment decisions by providing insights into the future viability of car manufacturing in Australia, potential government support, and the strategic plans of major players like Holden and General Motors.
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