Holden talks seek to save company in Aust

Talks are set to start in Adelaide to help secure the future of the embattled car maker Holden. Source: AAP

TALKS involving federal Industry Minister Ian Macfarlane, South Australian Premier Jay Weatherill and Holden boss Mike Devereux are set to start in a bid to secure the future of the embattled car maker.

The trio are trying to thrash out a deal on support for the car producer to ensure it continues to build vehicles in Adelaide.

The company was promised $275 million last year but is now thought to need more, possibly close to $500 million before committing to develop and build two new car models from 2016.

Before the recent federal election the coalition stood firm on a plan to cut $500 million from total auto industry assistance.

Since the poll, Mr Macfarlane has been more supportive of Holden, suggesting he was willing to see what the new government could do.

But extra government help is likely to be linked to Holden increasing its export sales.

Premier Weatherill said the state government wanted to secure the car producer's future in SA and the early signs were encouraging.

"We'll be advancing the case very strong to Mr Macfarlane," Mr Weatherill told reporters on Tuesday.

The premier, Mr Macfarlane and Mr Devereux are scheduled to front the media at Holden's Elizabeth plant on Wednesday.

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