End of a Holden era?

Holden Commodore. Photo / Supplied

It's decision time for GM on whether to stick with production in Australia - Holden is next week expected to decide on its manufacturing future in Australia beyond 2018.

The carmaker will either approve Australian development of its next-generation vehicles, or signal an end to the home-grown nameplate that has been around since 1948.

Holden is already preparing the 2013 VF Commodore range, which will go through to 2017. But decisions about what will be made by the Australian arm of General Motors after that are still to be made.

Holden chairman and managing director Mike Devereux said a decision on long-term production was imminent.

"We are pretty close," he told Australian media. He said Holden was talking to the Australian Government about incentive packages to enable it to compete with other countries for engineering, design and manufacturing work.

"We need to have pretty solid conversations with the Government - and we're having those," he said.

"What is absolutely critical is long-term policy certainty, clarity, consistency and competitiveness."

Devereux said production flexibility was still key to the long-term prosperity of Australian carmakers.

Holden builds more than 50 variants at its Adelaide plant. "That is the name of the game for us," he said.

The current level of Australian government assistance was below that of other carmaking countries and insufficient to secure the next round of investment in future models.

"Government investment, or intervention, should not be a dirty word," said Devereux, who is also president of the Federal Chamber of Automotive Industries.

As FCAI chief, Devereux has questioned the Federal Government's decision this year to slash A$800 million ($1 billion) in funding to the automotive industry - through the redirection of the Green Car Innovation Fund to Queensland's flood relief - saying it threatens the long-term viability of local vehicle manufacturing.

He said the unexpected changing of long-term plans sends a poor message to multinational companies such as General Motors, Ford and Toyota.

Ford is also understood to be close to deciding on its long-term manufacturing future in Australia. The current Falcon range is set to be replaced by a global design within the next four years.

'We are continuing to look for ways to improve and increase our local production," said Ford Australia public affairs director Sinead Phipps. "We are absolutely working on a plan to continue in Australia."