General Motors to invest $1.04 bln in Australian operations

PanARMENIAN.Net - U.S. car maker General Motors on Thursday, March 22, committed to invest A$1 billion (US$1.04 billion) in its Australian operations over the next decade after securing Australian government support to help it keep its car plant open until at least 2022.

According to Reuters, Prime Minister Julia Gillard said the national and two state governments would inject A$275 million into GM Holden in the latest hand out to the country's struggling auto makers to protect manufacturing jobs.

Australia's three car makers - GM Holden and the Australian arms of Toyota Motor Corp and Ford Motor - have all cut jobs due to falling sales and exports, blamed on the global downturn and a record high Australian dollar, which has traded above parity with the U.S. dollar.

The funding will secure the jobs of 12,000 people employed by GM Holden's Adelaide car plant and engine manufacturing plant in Victoria, and shore up thousands more manufacturing jobs in the components sector.

GM Holden cut 140 jobs from its Adelaide car plant in February, while Toyota said in January it was cutting 350 jobs at its Australian manufacturing operations.