SYDNEY: FORMER Holden boss Mike Devereux has responded to claims by a senior General Motors executive that he was in favour of closing Holden’s car factory — even though he spent more than a year publicly lobbying to save it.
In Detroit yesterday the head of GM international operations Stefan Jacoby told Australian media it was the right decision to close the loss-making Elizabeth car factory and that Mr Devereux supported the decision.
But in a statement to News Corp Australia today Mr Devereux said: “As I said at the time, we tried every possible way to make the numbers stack up on domestic manufacturing in Australia. But in the end, we could not. I said this at the time of the decision. As much as everyone regrets the impact this decision has on individuals, it was the right decision.”
A high ranking Holden insider has told News Corp Australia: “From a business perspective Mike (Devereux) knew the sensible thing to do would be close manufacturing. But Mike’s a fighter and Holden got under his skin. He would not have been like that if he didn’t genuinely want to make it work.”
Mr Jacoby also issued a statement adding that GM and Holden “left no stone unturned” in trying to continue manufacturing in Australia.
“However it became clear that manufacturing in Australia could not be viable ongoing for our company, as well as the other domestic manufacturers,” said Mr Jacoby.
Australia over many years had “liberalised trade with other countries and the cost of production could no longer be offset” he said.
“This was a tough decision and one taken only when we had exhausted all other options,” said Mr Jacoby. “In the end, it was clear that this was the only decision we could take to build a sustainable future for Holden.”
The Holden car assembly line in Elizabeth and engine plant in Port Melbourne are due to shut by the end of 2017, putting approximately 1400 factory workers out of a job.
It will follow the closure of Ford’s Broadmeadows car assembly line and Geelong engine and stamping plant in October 2016.
Japanese car giant Toyota will close its Camry car factory in Altona, on the outskirts of Melbourne, about the same time as Holden. As with Ford and Toyota, Holden will become solely an importer of vehicles once its car factory closes.
