6000 Holden Jobs Safe Despite GM Bankruptcy
Thursday June 4, 2009
US car manufacturer General Motors filed for Chapter 11 bankruptcy protection in the US last night as expected. The bankruptcy follows long running financial struggles in the ailing US auto industry that both directly and indirectly employs a massive workforce. Here in Australia, Holden provides 6000 direct jobs and even more indirect business to workers around Australia.
However, despite the bankruptcy, Holden Australia has guaranteed to continue to be a leading manufacturer and maintain operations in the Asia Pacific region. Company directors state the company is actually well positioned to take advantage of future upturns, and it expects to continue to perform in the local market. While the GM collapse will affect Holden and parts suppliers Pacifica among others, Holden will be around for some time yet it seems.
Holden maintains it has taken all necessary steps to weather the economic crisis. This includes cutting employee shifts and making pay cuts across the board. Holden also states it will be a future economic hub in local regions along with China and Korea, which is a relief and good news for the 6000 Holden employees.
Chapter 11 bankruptcy is when the US government injects even more funds into the ailing companies, and in this case, contributions to GM will add to a total of US$50 billion dollars. In return, taxpayers have 60 percent ownership in the business. Car makers Chrysler also filed for Chapter 11 bankruptcy, and the company is expected to come out of bankruptcy within weeks.
According to Holden and GM, no operations outside the US will be affected by the court proceedings, and Holden Australia will still remain a part of GM. GM's other arms - British Vauxhall and German Opel subsidiaries - will not remain a part of the company.
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