Fed: Car industry hits back at closure speculation

AAP General News (Australia)
04-14-2009
Fed: Car industry hits back at closure speculation

By Tim Dornin

ADELAIDE, April 14 AAP - Australia's car industry has rejected as nonsense suggestions
that it's just a matter of time before the country's local vehicle producers close their
doors.

While global trading conditions remain tough, the Federal Chamber of Automotive Industries
(FCAI) says there is cause for optimism after recent investment decisions from car makers
Holden, Ford and Toyota.

Holden has also reaffirmed its continued commitment to local production, including
its intention to build a new small car in Australia from 2010.

Their response follows comments from the editor of the Dog and Lemon car guide, Clive
Matthew-Wilson, that Australia's three car producers will close.

Mr Matthew-Wilson has issued a statement saying Australia's car assembly industry will
not survive the economic recession.

"Australia's car factories are losing money on every vehicle they make," he said.

"No amount of incentives from the state and federal governments can solve this basic problem.

"It's not a matter of whether they close down, but when they close down."

But a Holden spokesperson questioned what right one person had to call time on an industry
employing more than 60,000 people.

"What data is he basing his views on when happily sounding the death knell for Australian
car makers and employees?" the spokesperson said.

"We've never had a request from this individual to speak with our executives, to discuss
our company business plans or review the business case for our new fuel efficient, four-cylinder
small car.

"This is shameless self-promotion at the expense of our industry, our organisation
and our employees."

FCAI chief executive Andrew McKellar said Mr Matthew-Wilson's comments were irresponsible
and the industry emphatically rejected his views.

"They're nonsense, it's not responsible, it's not accurate, it's not considered and
it's certainly not well sourced," Mr McKellar told AAP.

"It's just one person's opinion."

Holden recently announced plans to cut vehicle production in Australia, but said it
continued to have the country's best selling car and had no plans to withdraw from local
production.

"We're in there fighting in a pretty tough global environment and we won't be discouraged
by bystanders," the company said.

Holden said it would also continue with plans to produce a new four-cylinder car in
Adelaide, the vehicle's development helped by funds provided by both the South Australian
and federal governments.

The federal government has also unveiled a $6 billion assistance package for the wider
car industry.

But Mr Matthew-Wilson said it would have been better to provide financial assistance
directly to car workers affected by the downturn.

"The Australian government can throw $6 billion or $600 billion at these car plants,
but they still won't be economically feasible," he said.

"Australia's car plants are losing money faster than a drunk at a casino and there's
no feasible way of turning this around."

Mr McKellar said the FCAI believed there was cause for optimism, especially considering
Holden's decision on a new car, Ford's decision to keep its Victorian engine plant open
and Toyota's decision to build a hybrid Camry in Australia.

"All of those things demonstrate that the Australian vehicle manufacturing industry
is certainly competitive, is certainly able to stand on its own two feet," he said.

AAP tjd/jfm/mn

KEYWORD: HOLDEN CRISIS WRAP

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