Bid by Belgian entrepreneur to take over Holden plant collapses
A bid by a Belgian tycoon to take over Holden’s car assembly plant in Adelaide has collapsed.
Christopher Pyne backs Belgian trying to save Holden plant in South Australia
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General Motors and the Punch Corporation have announced a detailed analysis of the business model has determined it is not viable.
The news comes on the same day Holden confirmed Cruze production will cease at its Elizabeth plant in October with the loss of about 400 jobs.
In a joint statement, General Motors and Guido Dumarey’s Punch Corporation said the challenges to domestic car manufacturing in Australia, lack of scale, high production costs, supply base contraction and increasing market fragmentation could not be overcome.
“In particular, the wind-down of the supply base following the manufacturing exit of the three existing car makers, and the critical production mass they represent, is insurmountable,” the statement said.