The automotive industry is currently enduring something of a crisis with the likes of General Motors, Chrysler and Ford all coming under threat. Now, it’s the turn of Holden, an Australian icon for 60 years, to sink close to a takeover.
Reports in Australia suggest the company could be snapped up by Chinese or Indian owners due to the ongoing financial crisis. One automotive commentator suggested that Holden could fall into the hands of the Shanghai Automotive Company, GM’s Chinese partner, while Ford Australia could end up in the hands of Tata Motors.
One of the reasons for such widespread interest in the Australian manufacturer is that the Rudd Government has offered a huge boost to the funding of car research and new designs. This could prove a massive incentive to Asian owners who can offer more certainty than cash-strapped American manufacturers – particularly as the money on the table must be matched by the manufacturers themselves.
There are mounting fears in Australia that much of the money made available may fall into the hands of overseas companies.
Holden is one of the larger employers in Australia with more than 6,000 people on staff. Meanwhile, the car industry as a whole employs 65,000 jobs and another 200,000 are employed in firms relying on the car manufacturers such as parts suppliers.
