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Category: Government and Politics / Federal - State Issues / States and Territories / Federal Parliament / Parliament / Automotive

Punch still keen to invest in SA car sector: Xenophon

Monday, 29 Feb 2016 07:30:51

Holden and Punch have abandoned their plan, but Punch is considering another, says Nick Xenophon. (ABC News)

Punch Corporation is working on a plan B for involvement in the car industry in South Australia after its Holden ambitions evaporated last week, independent senator Nick Xenophon says.

Key points:

  • Nick Xenophon had two rounds of talks with Punch over the weekend
  • He says Punch is doing due diligence on a plan B
  • The Senator says a lower Australian dollar is creating scope for Punch to invest

The South Australian senator had weekend talks with Punch executives after the demise of a plan to keep car manufacturing alive after Holden shuts its northern Adelaide operation next year.

Belgian entrepreneur Guido Dumarey, who owns Punch Corporation, issued a joint statement with General Motors late last week saying both sides had concluded the manufacturing proposal was not a viable business model.

Senator Xenophon said Punch had not given up on investing in SA.

"I spoke to [Mr] Dumeray and his senior mergers and acquisitions executive on Saturday at length and spoke again to Punch yesterday morning," he told 891 ABC Adelaide.

"Punch is going to look at their due diligence about a plan B — I think they're going to say not very much about that unless there is a solid plan.

"But I guess the one silver lining in this pretty dark cloud is that they still believe, from the meetings they've had here in Australia [and] from the reception they got from both the government and the opposition, state and federal governments alike, that they think there's real scope for investment in SA."

Senator Xenophon remained hopeful a plan would emerge to support skilled SA workers.

"Punch still believes that there is scope to invest in SA based on the lower Australian dollar. The business circumstances are very different from what they were two years ago," he said.

South Australian Premier Jay Weatherill said he was still planning to head to Detroit next month for talks with General Motors.

"I will be visiting Detroit in coming weeks to discuss with GM their plans to support these [Adelaide] workers and to put to them proposals about the future use of the plant at Elizabeth," he said.

AustraliaPlus


 

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