Holden says jobs safe- despite export blow

Holden has assured its workers that jobs at the car maker's Adelaide plant are secure despite General Motors in the US axing the Pontiac, which is exported from South Australia.

The Elizabeth plant exported more than 36,000 Pontiacs to the United States last year.

Amid slowing demand for cars globally, the plant is already moving from two production shifts to one to cope with the general downturn.

Car union official John Camillo says he hopes the latest Pontiac news will not worsen the downturn.

"Hopefully we don't need to do any further restructuring," he said.

"Hopefully within the next 48 hours, you know, they'll be able to let us know does that impact the Elizabeth operation, does it mean further job losses, do we need to do further restructuring?

"I think we've done most of the restructuring at this stage with the two shifts to one shift operation."

Holden spokesman Scott Whiffin says no Adelaide jobs will go and plans are on track to add production of a new small car at the Elizabeth operation.

"The small car is a big part of our go-forward plan," he said.Export push

Mr Whiffin says Holden has already modified its production schedule to cope with reduced demand and also exports to Asia, Africa, Europe and the Middle East.

He says the company will work hard to build other export markets for the cars it produces.

Holden managing director Mark Reuss has written to workers today to tell them their jobs will be protected.

"There are direct implications for Holden in this and specifically our Pontiac G8 export program," he said.

"The timing is obviously frustrating as the G8 just had a record sales month with almost 3,000 units.

"Regardless of Pontiac's expectations, we don't foresee job losses at Holden from this."

Mr Reuss has urged the Elizabeth workers to stay focused.

"We will do everything we can to minimise the impact and keep people in employment," he said.

"Focus on what we can control and look for ways to drive the business forward.

"The search for new opportunities begins today."

But the news of the Pontiac's demise by the end of 2010 has added to uncertainty for workers at the Elizabeth plant, who have already faced a series of production shut-downs, meaning cuts to their take-home pay.

"Play it day-by-day at the moment," said one.

"Who knows what's going to happen?"

"I don't know, what can you do about it, the Commodores aren't selling too well and if the four-cylinders don't take off, who knows?" said another.'Cause for delight'

Car industry analyst John Mellor says the Commodore remains a strong domestic performer so, coupled with plans to produce a new small car, there is cause for optimism.

"There are opportunities still for Holden - look, the total worldwide recession is going to have these kinds of effects and I guess everyone's going to have to roll with these punches, but I don't think the game's over," he said.

"If I was working in Adelaide and eyeing the fact that they're going to have a small car come in to substitute for smaller volumes of the Commodore, I think that'd be giving me some cause for delight." Federal Industry Minister Kim Carr is talking up the prospect of more jobs when Holden's production picks up and it starts producing its four-cylinder model.

"As a direct result of the Government's assistance and working with the company we will see a new car come into production from the end of this year and it will be in the showrooms by September next year," he said.

"It's my expectation that we'll actually see the opportunity for increased employment.

"It's a reasonable expectation that as the economy lifts, as growth is restored, that Australia will be in a strong position to take advantage of that and that we should see a movement forward much more rapidly that other countries."

Union officials will meet Holden management on Wednesday to discuss the latest developments.

... read original article
Tue 28th April 2009 - 01:45pm