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 Finance Ministry acquires 86% stake in Binladin Group through debt-to-equity conversion
RIYADH: The general assembly of Binladin International Holding Group has approved a capital increase through the conversion of existing debt into equity, a move that results in the Saudi Ministry of Finance acquiring an 86 percent ownership stake in the company, according to a report by Al-Arabiya.
The decision marks a significant step in restructuring the group’s financial position and reflects shareholder confidence in the company’s long-term strategy and operational recovery.
In a statement cited by the Al-Arabiya report, Binladin Group’s board of directors said the approval underscores trust in the company’s future direction and reinforces its development and growth objectives.
Under the approved arrangement, outstanding financial obligations will be settled through the issuance of new shares, allowing the company to substantially reduce its debt burden and strengthen its balance sheet.
As a result, the Ministry of Finance will become the group’s majority shareholder, aligning the government directly with the company’s growth trajectory while supporting its financial stability.
The transaction follows earlier measures taken by the Ministry of Finance to stabilize the group’s financial structure.
Previously, Saudi Arabia’s National Debt Management Center announced the successful completion of a syndicated loan facility on behalf of the ministry, arranged with a consortium of local and international banks. The facility totaled approximately SR23.3 billion ($6.2 billion) and was part of a broader framework to address the company’s liabilities.
The Ministry of Finance had earlier outlined a series of coordinated steps with Binladin Group to settle outstanding cash obligations to banks and restructure the company’s financial commitments. These measures were designed to restore operational stability and enable the group to continue executing its portfolio of large-scale construction projects.
The move is seen as a continuation of the government’s broader support for the construction and infrastructure sector, a key pillar of Saudi Arabia’s economic transformation agenda under Vision 2030.
The restructuring is expected to help ensure the timely completion of strategic projects, safeguard employment, and enhance the sector’s attractiveness to investors.
Commenting on the development, Mohammed Al-Tayyar, a political economy researcher, said the capital increase through a debt-to-equity swap significantly strengthens Binladin Group’s financial standing. He noted that the transaction is likely to bolster investor confidence, improve governance and transparency, and open up new opportunities for sustainable growth as the company moves forward under a more stable financial framework.
