KEY POINTS:
ADELAIDE - Local car maker Holden will remain viable and make a positive contribution to the global recovery of auto giant General Motors, a plan put to the US government says.
But Holden may not be saved from job cuts as local executives look at all aspects of
the business and make some "tough decisions" as part of the global restructuring efforts.
The GM plan put to the US treasury department said the company might need up to US$30 billion in government loans as it implemented a survival strategy that included cutting 47,000 jobs, including 26,000 from outside the US.
GM would try to borrow up to US$16.6 billion more from the government, on top of the US$13.4 billion it had already received.
The company also planned to close 14 factories, five more than originally planned, sell off or phase out the Saturn brand and consider doing the same with Hummer.
It would also consider its options for its Pontiac brand. Holden currently produces the G8 sedan for Pontiac.
Holden was mentioned just briefly in the GM plan, which made references to the program to build a new small car in Australia from 2010.
It said Holden and the federal government had developed a plan to bring the more fuel-efficient model to market, with funding provided by the government in the form of permanent grants.
"With this support, Holden is projected to be a viable operation, making a positive contribution," the GM plan said.
Holden media relations national manager Scott Whiffin said GM's global restructuring plan highlighted the need for every part of the corporation to contribute.
"Holden is actively working on a series of initiatives that will see us contribute meaningfully to GMs global viability," he said.
"We have already announced plans to build a second car line in Adelaide - the reality of that is that we are a company that is innovating to make sure we are responding to a rapidly changing market."
Mr Whiffin said Holden also had other initiatives on the table that were still to be finalised.
"We are actively looking at all aspects of the business and will be making some decisions - some of them tough decisions - in the coming weeks in terms of our structure and operations," he said.
"All of this contributes to a viable, sustainable local operation."
Mr Whiffin said Holden's outlook remained challenging with shrinking local and export markets affecting sales volumes and manufacturing schedules.
In 2008, Holden's total vehicle sales in Australia fell by 11 per cent while in January sales were down by 14.5 per cent compared to the same month last year.
- AAP