Holden penalised $1m for shutting down

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Holden has been cut off from government payments worth more than $1 million following its shock decision to leave Australia.

Under the Automotive Transformation Scheme, eligible investment in research, development, plants and equipment is reimbursed by taxpayers.

But Industry Minister Karen Andrews has ordered General Motors-Holden be deregistered from the scheme.

The move puts the handbrake on more than $1 million worth of payments and will ensure the company does not receive another cent in support after walking away from local workers and dealers.

Industry Minister Karen Andrews said she, like most Australians, was extremely disappointed at GM Holden’s decision to walk away from our country. Picture: Lawrence Pinder
media_cameraIndustry Minister Karen Andrews said she, like most Australians, was extremely disappointed at GM Holden’s decision to walk away from our country. Picture: Lawrence Pinder

“Australian taxpayers have given this multinational company more than $2 billion in financial assistance over recent years, and it still decided without consultation to wind up the Holden brand in Australia,” she said.

“I think you’d be hard-pressed to find a single Australian who thinks GM-Holden should receive financial support from the Federal Government in the same year they announced they’re leaving our shores.”

The loss to automotive research and development in Australia, including the closure of GM-Holden’s Lang Lang proving ground and Port Melbourne design studio, was behind the decision to deregister the company.

Ms Andrews said its activities would no longer place the industry on a sustainable footing.

The brand will be retired in Australian and New Zealand by 2021.

Originally published as Holden penalised $1m for shutting down