Rumours that General Motors will sell its Holden car manufacturing operation in Australia have been quashed by the government.
Despite fears that GM would run out of cash in the first half of 2009, Industry Minister Senator Kim Carr said the company had told him it was positive about the future of its Elizabeth plant in SA.
"He [GM chief executive Rick Wagoner] has made the point very, very clear to me, how important it is that we not only keep plants of this quality within the GM family but also that we have a very strong supply base to ensure the ongoing prosperity of the company here in Australia," Senator Carr said.
The minister was in Adelaide recently to brief the local automotive industry on the government's $6.2bn assistance plan that is hoped to make the industry more environmentally and economically sustainable by 2020.
The government's plan came as GM warned that its finances were so bad that it needed a US government aid package before president-elect Barack Obama took office in January.
The latest news from the US is that US Treasury Secretary Henry Paulson has ruled out the possibility of using part of the US$700bn rescue plan to help the struggling auto industry.
Paulson said the Troubled Asset Relief Program was targeted to the financial sector and could not be used to bail out carmakers unless Congress amended the plan.
"We care about our auto industry," but added that "the intent of the TARP was to deal with the financial industry."
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