Government Hints at Supporting the Holden Commodores Future

6 Nov 11

Speculation has arisen that the next version of the Holden Commodore may not be designed and developed in Australia.

Innovation Minister, Senator Kim Carr has been quoted as saying that the government's $6 billion, 12-year car plan is "not a set and forget policy" and has indicated that the government was prepared to "adapt to global economic realities"

Senator Carr said the car plan had ''saved the auto industry'' but a 49 per cent appreciation in the Australian dollar has meant that export sales are down 42 per cent since 2008.

In January, the Gillard government axed the co-investment green car innovation fund to divert $800 million to help pay for repairs after the Queensland floods. At the time this announcement both attracted support on the basis that the industry should stand on its own two feet, and criticism because the Australian car industry attracts so much foreign investment.

The Australian automotive industry took a fair amount of punishment during the global financial crisis but 2010 and 2011 has seen a rebound in the industry, however, a trend in the large passenger car market, in which Australia’s automotive industry specialises in, continues to shrink as consumer preferences turn to smaller more economical models and sports utility vehicles.

Large motor vehicle sales in Australia, as a percentage of total sales has fallen from 23% in 2002 to 11% in 2010. With the demise in sales of the large cars that are manufactured in Australia for the domestic market it stands to reason that imports now represent 85% of total vehicle sales in Australia.

What is also of particular note though is that only five years ago imports represented only 74% of total Australian vehicle sales.

The Labor government may consider greater assistance for the car industry, the Innovation Minister, Kim Carr, has hinted. Senator Carr did not specifically mention a new car plan to take effect as the existing funding tapers off, but GM has called for a new ''co-investment'' program.

Speculation about the future design and development of the Commodore is at present, just that, speculation.