Holden engine plant safe

Business as usual at Holden's Victorian V6 plant despite production shift changes... But unit downsizing on agenda

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Holden's announcement yesterday regarding shift changes will not affect the Port Melbourne plant assigned to V6 engine production in the immediate term, according to company spokespersons. Aside from managing "usual attrition", Holden will maintain activities at the plant, which currently employs approximately 400 people.

GM Holden's Chairman and Managing Director Mike Devereux admitted the engine has become more expensive due to the strong Australian dollar. He also acknowledged consumers are increasingly looking to downsize engine capacity for economic benefits, however the V6 unit is scheduled for ongoing production for a while yet.

According to Devereux, two-thirds of the total number of V6 engines produced are exported; primarily to South Korea where they are fitted to the Captiva (both the Chevrolet and Holden versions). The engine is also used by the Buick GL8 minivan (pictured) sold in China under the GM-Shanghai joint venture.

"As the price of fuel goes up, the demand for the V6 goes down. And added to increased costs, it certainly puts the pressure on us," admitted Devereux.

"The team [at Port Melbourne] is focussed on producing incredibly high quality engines. I think we're almost the best quality V6 engine plant in GM right now... And that wasn't the case just a couple years ago."

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