Holden’s Future: “No Decision” In GM, But Doubts Remain

UPDATE: IT'S OFFICIAL - Holden Ending Australian Production By 2017

Holden boss Mike Devereux has responded to reports that General Motors (GM) is preparing to announce an end to Australian manufacturing, declaring that "no decision" has been made on the future of the carmaker's local production.

Speaking at the Productivity Commission inquiry in Melbourne this morning, Mr Devereux said that GM has not set a timeframe on a decision, and that today's hearing was not the time to speculate.

The Australian Manufacturing Workers Union's Dave Smith today told the ABC that Mr Devereux's assurance is good news. 

"It keeps us in the ball game. It's been a difficult time but we've had some discussions and he's made it very clear to me that Holden wants to remain in Australia but it's about the government having the right policy settings to allow it to do so," Mr Smith said.

However, reports this week suggest that Federal Coalition ministers believe that a final decision has already been made inside GM - despite Mr Devereux's statements today - but that an announcement will not be made until next year.

At the very least, it is likely that GM has made preparations for both ending or continuing Australian production.

The final decision - which will be made in Detroit - will likely hinge on the outcome of the Productivity Commission inquiry and commitments for additonal and on-going support from the Federal Government.