Holden brushes off report of more funding

Holden has brushed off reports it wants more government funding, describing them as speculation. Source: AAP

HOLDEN says reports it wants more taxpayer funding to ensure the future of its Australian car assembly operations is pure speculation.

The company says it won't comment on negotiations with both the federal and state governments over ongoing assistance.

"That's a purely speculative piece and we won't be commenting publicly on our negotiations with either governments or the unions," a Holden spokesman said of the reports on Wednesday.

In 2012 the company was promised $275 million in a package to ensure it continued to build cars in Australia until at least 2022.

The funding would be used to help it design and develop two new vehicles that would be built at the Elizabeth factory in Adelaide from 2016.

While there was in-principle agreement last year, the details were still being finalised with both the commonwealth and the South Australian government.

Concerns over promises by the coalition to adjust auto industry assistance and the timing of the federal election are also causing uncertainty.

But reports said Holden now wanted up to $60 million more in government funding despite recent moves to axe 400 staff in Adelaide and cut production costs.

The Australian Manufacturing Workers Union also said the co-investment agreement was under review and more money was being sought.

Industry Minister Kim Carr said the government was in negotiations with Holden and would make an announcement shortly.

"We're not in the business of having private conversations and then broadcasting them," he told reporters in Melbourne.

He said car companies have been adapting rapidly to industry changes and had come through the challenges of the global financial crisis.

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