We will survive, says Holden as GM falls

Holden will launch the new four-cylinder Cruze in Australia next month. Photo / Supplied

Holden will survive the bankruptcy of its United States parent General Motors, the company's chief and the Australian Government have pledged.

Holden said yesterday that there would be no changes to its operations in Australia and New Zealand, no jobs would be lost, that it was expecting to announce a profit, and intended to expand exports.

"GM has clearly stated that all of its businesses in the Asia Pacific region - and that includes Holden - will continue normal operations and are not directly impacted by this process in the US," managing director Mark Reuss said. "Holden is a subsidiary of GM, but we are a corporate entity in our own right, an independent company under Australian law."

The Australian Government, which is pumping A$149 million into Holden for a new fuel-efficient small car under its A$6.2 billion green car programme, also said the company was safe.

Industry and Innovation Minister Senator Kim Carr said the Government had spoken to General Motors at the most senior levels and with the Auto Task Force in Washington, formed by President Barack Obama to salvage the US car industry.

"[Holden's] future is guaranteed."

He said Holden would provide a platform for the international expansion of the Australian car industry.

Like the rest of the struggling Australian industry, Holden has faced slipping sales and greater competition, and has not reported an annual profit since 2004.

The company closed its Port Melbourne engine plant last year and has cut pay and production and halved working hours at its Elizabeth, South Australia, plant.

Reuss said the company was looking at new export opportunities, including the export of V6 engines to Mexico for Cadillac, and that a A$450 million investment by GM in a new locally built small car would not be affected by events in the US.

Holden will next month launch the new four-cylinder Cruze on the Australian market.

Reuss told a media conference in Melbourne the company was on the verge of turning a profit in May, and no jobs were at this stage under threat.