The South Australian and federal governments are negotiating to provide a funding package to car maker Holden to ensure the future of the company's Australian assembly operations.
South Australian Premier Jay Weatherill says Holden's parent company, General Motors (GM), is considering closing its Australian operations.
"We are, of course, urging GM not to pursue that option," Mr Weatherill said on Tuesday.
"However, we recognise that car making is a global industry."
The SA premier is in the US where he joined federal Manufacturing Minister Kim Carr in talks with GM chief executive Dan Akerson on the future of Holden's operations.
That includes discussions on an investment package from the state and federal governments that will help secure Holden's future and also the future of local component suppliers.
"In the light of ongoing speculation about Holden's future in Australia, I have come to Detroit to put South Australia's case for being a strong part of GM's future global plans," Mr Weatherill said.
"Today we received a clear message from Mr Akerson and (Holden boss Mike) Devereux that they are committed to working with government to secure Holden's future in Australia and, in particular, the Elizabeth plant."
The SA premier said it was likely the future of car making in Australia would involve a smaller but more secure industry.
"This will require us to build on those elements of our local industry which are world class and to lift standards in the balance of our industry," he said.
"This will be achieved through the agreement we are currently negotiating with General Motors.
"This agreement will involve co-investment by state and federal governments and a much closer working relationship with General Motors and Holden and component suppliers in Australia."
As part of the discussions, GM has agreed to establish a working group to look at increasing opportunities for local component suppliers in global markets.
Mr Weatherill has not disclosed the level of funds the two governments will commit, but said the package would be significant.
Mr Devereux said Holden and the state and federal governments had a "strong mutual desire" to retain Holden's capabilities in design, engineering and manufacturing.
But he said there was unprecedented competition for capital investment in manufacturing and product development for the next generation of global vehicles.
"Car makers are investing billions of dollars to develop future vehicles, so it's critical for Australia to have consistent and competitive long-term polices that make this country an attractive place for General Motors and other companies to continue to invest," he said.
"The discussions with the minister and the premier have been very positive and productive.
"We're making good progress in developing a new co-investment plan to help secure a long-term future for Holden and the automotive and manufacturing industry more broadly."
In 2009 when the fate of the entire General Motors company hung in the balance, a new entity called, "New GM" was created. New GM got all of the company's valuable assets and resources while "Old GM" got the toxic end of the deal like real estate the company didn't have use for, debt, etc. By freeing the "New GM" up from those burdens the company was able to live and and even thrive as we have seen lately. While that was going on, "Old GM" was slowly collapsing onto itself, selling off what assets it could in the form of old plants, land, etc, but racking up big debts in the process. On December 15, 2011, "Old GM" officially dissolved and it marked the end of the road for the 103-year old company which was once the largest manufacturing collossus the world had ever seen. Funny that the world is hung up on the demise of Saab when one of the most historic business enterprises in human history quietly padlocked the doors just days ago.
Yes, it is largely a technical thing as one would never know there was anything different about "New GM" from "Old GM" but one of the interesting things is does do is to protect "New GM" from lawsuits regarding to cars made before 2009, because that company no longer legally exists. Was that part of the "benefit" from creating the new company? We're not sure, but it seems like it could be one of many pieces.
One interesting fact we gleaned from a story in the Detroit News was that at peak, GM employed more than 525,000 people and when the company was finally dissolved, there were effectively two full time employees. It's hard to really compute how it all happened and with the swiftness that it did in 2007 and 2008, but they were dark days for sure. Apparently more than 400 lawyers worked a total of 70,000 hours for more than $45-million dollars through the whole bankruptcy and wind down process of "Old GM".
With "New GM"releasing some very solid products, creating specialty projects and programs like the COPO we have been raving about, and fighting well in market segments they had previously lagged in, it seems like things are heading in the right direction in Detroit. Here's hoping for another 103 years.
The rumours have been flying around today -- no doubt you've seen them. Carsguide's Peter Barnwell is suss on the timing of the 48.215 news yesterday (but he's deeply cynical about everything).
What do you think? Is it a taste test to see if Australia will cop the axe?
Peter Barnwell blogs on the Holden Commodore axing rumours.
Don't you love the way Holden's PR machine handles bad news - namely the possible end of a locally designed Commodore - by preceding it with good news the day before.
In this case it was a feel good yarn about the restoration of the first 48-215 Holden, built in 1948 and owned by legendary BHP boss Essington Lewis. Clever, but we saw straight through it.
Cynics might suggest Holden is simply kite flying to see how much heat a possible end of local large car production might bring. And there's been plenty already from all quarters, including government and unions.
The battery-powered Commodore is the first of seven being built by EV Engineering in Melbourne. Chief engineer Tim Olding, who spent 19 years with Holden, says the first test car is completed and would conclude validation testing by February.
It will be joined in June by six more test cars built as a "proof of concept project to demonstrate technical viability".
The eight-year project is a partnership with companies specialising in electronics, charging infrastructure and fleet vehicles and has been partly funded by a $3.5m government grant under the now-axed Green Car Innovation Fun.
Olding says they have also received assistance from Holden but "no promises".
"Holden gave us all the CAD (computer-aided design) for the base vehicle, access with their engineers to make the car function in the same way and access to their proving ground at Lang Lang," he says.
"But there have been no promises from Holden about building an electric car. This is a feasibility project to look at all the components. No promises are guaranteed."
Olding also said their conversion architecture could effectively be transferred to a Ford Falcon but refused to comment on approaches to, or from, Ford or any other manufacturers.
For the first time, Olding provided details of the electric car concept and the reasons for choosing the Commodore.
He says the Australian car industry's strength is in large rear-wheel-drive cars and the ability to build a variety of different models from the same architecture such as sedans, wagons and utes.
"It (the EV) should be able to be built on an existing production line alongside ICE (internal combustion engine) models," he says. "Rear-wheel drive is perfect for balance and for the placement of the electric powertrain."
Their EV Commodore concept replaces the Commodore's engine and transmission tunnel with 210 40amp-hour cells from Bosch; the same as used in BMW's electric concept cars. Olding says the modules can be built into the unusual engine/transmission tunnel shape.
The fuel tank is replaced by the power electrics module and the differential is replaced by the electric motor and gearbox between the rear suspension. "Even the upcoming Tesla Model S has a similar configuration," he says.
"There should be no major change to the engineering; that's the key component. This is the most cost-effective way to make an EV in Australia. "They should cost about the same as an ICE car, plus the cost of the battery."
Olding says the battery is anchored with quick-release connections so it can be swapped easily to alleviate anxiety over the estimated 160km range.
The car would also be chargeable from a home mains output. EV Engineering's consortium includes Bosch, Continental, Futuris, Better Place, Air International and GE, one of the largest owners of feet vehicles in Australia. The consortium is headed by Rob McEniry, former CEO of Mitsubishi Motors Australia.
Olding says GE will help conduct testing over the next two years. However, he says it is also feasible that an EV car could be produced for public sale before the official end of testing.
While Holden has no current plans for an EV Commodore, it will release the Volt next year which has an electric motor with a small petrol-powered "range extender" motor.
Holden engineers in Australia led the development of a world-first front-seat centre airbag that will debut globally in the US within a year and could be a key innovation in the next-generation VF Commodore due in 2014.
General Motors' groundbreaking front centre airbag deploys from the inboard side of the driver's seat to separate the driver and front seat passenger in the event of a side impact, offering vital head protection.
The new airbag development represents a coup for GM worldwide, stealing a march over European premium brands that pride themselves on being the leaders in the critical area of safety innovation.
Although Mercedes showed a similar system in an ESV (experimental safety vehicle) two years ago - about the same time Toyota presented a rear-seat version - GM claims its front centre airbag will be the first into series production.
Engineers at GM Holden developed the technology in conjunction with the acclaimed Monash University Accident Research Centre (MUARC) in Melbourne before handing the project over to Detroit for production engineering.
The life-saving device will be introduced around the third quarter next year on three US domestic mid-size crossover models - the 2013 model year Buick Enclave, GMC Acadia and Chevrolet Traverse - built at GM's Lansing, Michigan, plant.
Holden's lead role in the program was revealed to GoAuto this week by GM Holden director of external communications Emily Perry.
Ms Perry said that Holden Innovation - which was then a standalone think-tank but is now under Holden's general engineering umbrella - initiated the 'advance program' in 2006 and continued working on it until 2008, working with GM's US seat supplier.
"An advanced engineering team from Holden Innovation led the research and development of this safety technology and then handed it over to the safety group in North America to continue the work," she said.
"Research showed that far-side impact injuries represent nearly 40 per cent of all side impact injuries, but this area of research was lagging other occupant safety R&D.
"So the Holden Innovation team was aiming to advance understanding far-side restraint systems and develop new occupant protection systems for these types of accidents."
Ms Perry said Holden was studying the prospect of incorporating the airbag into locally produced models.
