Jovial Monk wrote on Jan 22
nd, 2016 at 8:36am:
That is also why the pretend negotiations to buy Holden’s SA buildings and plant are going on.
THIS ONES FOR YOU PISS HEADA BELGIAN entrepreneur who wants to buy GM Holden’s Elizabeth car manufacturing plant says he hopes to continue making Commodores and other current-model cars there for some years.
Guido Dumarey, who turned around an ailing French GM transmission plant he bought in 2013, is in early talks with state and federal governments about taking over the Elizabeth factory.
His Punch Corporation’s plan involves initial contract car making for other manufacturers, including Holden, then building its own vehicles within five years.
Holden says it would carefully assess any detailed plans and Industry, Innovation and Science Minister Christopher Pyne says he sees real possibilities for Punch at Elizabeth and will work with them to try to make it happen.
Mr Dumarey, who is being introduced to government and industry leaders by Senator Nick Xenophon, is understood to be prepared to invest at least $150 million into the project and retain the existing workforce.
The lower Australian dollar makes an export industry plausible but Punch must overcome obstacles with maintaining Holden’s supply chain and securing its intellectual property if it is to go ahead.
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It is understood Mr Dumarey has had an initial informal meeting with Holden but the company says it has not yet received a detailed proposal.
Punch Corporation CEO Guido Dumarey and independent Senator Nick Xenophon outside City Holden. Picture: Bianca De Marchi
Mr Dumarey said he was seeking to reach agreement by mid-2016, in order to ensure a “seamless transition” of plant operations once Holden stopped operations by the end of 2017.
“We have been looking at the GM plant in Elizabeth for some time and, based on our experience with rejuvenating a GM transmissions plant which was due to be closed in Europe, we can see a unique opportunity here to build a different but viable premium vehicle manufacturing and export operation in Australia,” he told The Advertiser.
“To make it a reality will require all parties to work quickly and cooperatively and, to that end, we are pleased to see recent statements by GM that they are open to discussions about options for the plant ...”
It is not known what level of government funding Punch would seek to maintain Elizabeth manufacturing operations but Mr Dumarey has previously highlighted $800 million in industry funding which he says “must be correctly used”.
The Strasbourg plant his company bought had been slated for closure, costing 1000 jobs. But GM provided purchase guarantees for the transmissions in the first two years and the plant is now heading for 1350 workers, with BMW as its biggest customer.
Responding to Mr Dumarey’s comments, Holden issued a statement which said: “If a party is interested in the ongoing use of one our sites, Holden and GM will carefully assess any detailed plans should they be submitted.”
Senator Xenophon stressed talks were in early days and it was important not to unduly raise hopes.
“The next six months will be absolutely critical for the future of automotive making in this country. I’m not going to die wondering and want to make sure I did everything I could to automotive making stays in this country,” he said.
Mr Pyne, who met with Mr Dumarey on Tuesday, said: “I see real possibilities for Punch at Elizabeth but much depends on General Motors and so, because my number one priority is jobs and growth, I will be working with them to try to make this happen.”
Labor industry spokesman Kim Carr said he would work with the Government to try to make the Punch proposal happen.
“While this proposal offers great opportunity, there remain obstacles yet to be overcome but I would urge Punch Corporation’s initiative be given thorough investigation,” Senator Carr said.
State Automotive Transformation Minister Kyam Maher confirmed his meeting with Mr Dumarey and said the Government would work collaboratively on any proposals for northern Adelaide, including the Holden site, that might contribute to the SA economy.
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