SYDNEY: Australia’s near 100-year automotive industry ended on Friday as GM Holden, a unit of US carmaker General Motors, closed its plant in South Australia to move manufacturing to cheaper locations.
The closure comes a year after Toyota and Ford similarly moved out, eliminating thousands of manufacturing jobs. It adds pressure on the government to help those made redundant find work in a battleground state ahead of a federal election in 18 months.
“The end of Holden making cars in Australia is a very sad day for the workers and for every Australian. It is the end of an era,” Prime Minister Malcolm Turnbull told reporters at a regular briefing on Friday. “Everyone has a Holden story.”
Turnbull has sought to soften the impact of a declining automotive industry in a state which historically determines who forms government by making South Australia a defense industry hub.
The government plans to increase defense spending by nearly A$30 billion by 2022, with the manufacture of a fleet of frigates, armored personnel carriers and submarines to be concentrated in South Australia.
But John Camillo, state secretary at Australian Manufacturing Workers’ Union in South Australia, said nearly 2,500 newly unemployed will need government help finding work.
“They need to be retrained to be able to work in defense, mining, aerospace, because we are going to be building ships,” Camillo told reporters outside the GM Holden plant in Elizabeth, 26 kilometers north of state capital Adelaide.
Camillo was joined outside the factory by hundreds of workers and car enthusiasts who had gathered to greet the last car off the production line.
Rising discretionary income and record-low interest rates have encouraged consumers to buy new cars, but many turned against the large passenger cars for which GM Holden is known.
“Consumers want fuel-efficient small cars and sports utility vehicles (SUVs), and overseas manufacturers have been able to profit from changing tastes,” William McGregor, industry analyst at IBISWorld, told Reuters.
Monthly SUV sales hit a record in June, surpassing 40,000 cars, Bureau of Statistics data showed.
GM Holden, whose SUV range proved unpopular with Australians, will shift production to Germany where advanced automation will help keep costs low as it revamps its lineup.
GM Holden began auto production in 1948 with then-Prime Minister Ben Chifley driving the first car off the production line, declaring it “a beauty.”
“I have bought four of them,” said Shane Oliver, an AMP Capital economist who described the closure as a “sad day.”
“But it’s clear that not enough Australians’ agreed, opting for foreign-made SUVs instead.”
Australian car manufacturing ends as GM Holden closes plant
Australian car manufacturing ends as GM Holden closes plant
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
