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VACC Applauds Holden for Surviving GM Bankruptcy

June 5th, 2009
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VACC, the peak Automotive Industry body in Victoria, has applauded GM Holden Australia for being best placed to survive the global economic slowdown.

Holden’s parent company, General Motors, has officially filed for Chapter 11 bankruptcy in the United States.  It hopes to come out of bankruptcy protection within 60 to 90 days.

Holden Chairman and Managing Director, Mark Reuss, announced earlier today that it was ‘business as usual’ for the Australian manufacturer and that he anticipated the decision will not have any direct impact on Holden’s workforce, dealers, or suppliers.

“Mr Reuss, Holden management and unions must be congratulated for working together to ensure the Australian business remains a viable concern. It has taken a Herculean effort from all the stakeholders to maintain the Holden brand. All parties have sensibly evaluated the situation and put in measures which will see the continued manufacture of Holden in Australia,” VACC Executive Director, David Purchase, said.

“Today’s announcement in American means a fresh start for Holden in Australia. As a GM subsidiary, Holden is a separate corporate entity under Australian law in its own right. This means it can now plan ahead with certainty and is master of its own destiny.

“Dealers and their customers will not be impacted by activities in the US. Holden will continue to trade unaffected by events overseas and the operations of Holden franchised dealers will continue as normal.

“Holden is a great Australian company with deep roots in our economy and culture. It is an iconic brand that intends to continue to manufacture and supply vehicles to Australians just as they have done for over 75 years.

“Holden owners and new car buyers should recognise the importance of today’s announcement. Vehicle warranties will not be affected and customers should be reassured that their vehicle sales, servicing and warranty expectations will continue to be met by Holden and its dealer network.

“VACC does not expect consumers will see any difference in the trade of Holden vehicles and that, as with all new and used cars, now is a good time to buy.

“Holden has sent out a strong message to the Automotive Industry both in Australia and the world. Through a combination of decisive leadership, stakeholder cooperation and facing up to the realities of the global slowdown, they have not only put themselves in position to survive, they have put themselves in a position where they can look forward to a prosperous future,” Mr Purchase said.

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