The Rudd Government today announced a co-investment agreement with GM Holden and the South Australian Government, for Holden to build an all-new, fuel-efficient, low-emission small car in Australia, supporting up to 1200 jobs immediately.
The new, front-wheel-drive, four-cylinder car will be manufactured from the third quarter of 2010 at GM Holden's Elizabeth plant in South Australia. Design and engineering work will be done at Port Melbourne in Victoria.
The new car, part of the global Delta small car platform, will, in its first phase, include both petrol and diesel variants. It will support up to 600 jobs at Holden and up to 600 jobs in the automotive supply chain. Further phases of the this new small car will create even more jobs.
The new small car will redefine GM Holden in Australia, adding a second line alongside the Commodore and adding capacity that will reinforce the long-term sustainability of manufacturing in Australia.
The new car will provide Australian motorists with an Australian-made car that is around 20 per cent more fuel efficient and produces 20 per cent less in carbon emissions than current larger vehicles.
Families travelling 20,000 km a year will save almost $500 a year in fuel costs and produce around 1.7 tonnes less in carbon emissions.
The Holden small car lays the ground-work for the introduction of hybrid engines and alternative fuel systems, including LPG and E85 (ethanol-blended fuel) and CNG (Compressed Natural Gas).
The Holden small car will introduce the new-to-Australian manufacturing, low-displacement, forced-induction petrol engine, for enhanced fuel efficiency. These innovative technologies will complement programs for the Holden's large family cars.
The Commonwealth will contribute $149 million over three years starting in 2009-10 to this project. This co-investment deal is the first green car grant of funds since the launch of the Government's $6.2 billion New Car Plan for a Green Future, which is designed to transform the Australian automotive industry to produce fuel-efficient, low-emission vehicles and create high-skill, high-wage jobs.
The project is also supported by the South Australian Government.
The New Car Plan is part of the Government's broad economic strategy to stimulate activity and create jobs during the worst global economic and financial crisis in living memory.
The announcement is a significant win for families, the environment, jobs and the economy.