400 Holden engineers face axe

The death of Australian automotive manufacturing appears to be accelerating as Holden retrenches hundreds of engineers sooner than previously thought.

According to a source close to Holden, up to 400 of the company's 600 largely Melbourne-based engineering workforce may be given their marching orders by as early as October this year.

With much of the work already finished on the final Commodore, a facelifted version of the current VF expected to launch around October 2015, the bulk of the engineering staff will be laid off before year's end, according to the Holden insider.

It's understood that less than 100 engineers will be retained after the company closes its manufacturing operations in 2017.

The Australian automotive manufacturing industry is currently contracting at an increasingly rapid pace and Ford will be the first to close its local car building operations by October 2016, followed by Holden and Toyota both in late 2017.

Last year Ford CEO Bob Graziano stated that the plan was to close the Blue Oval's operations by 2016, but said it could happen sooner.

"We have always talked about it as our intent to go to 2016 and we are committed to getting there if we can," he said. "But I cannot predict what would happen externally that may prevent us from doing that."

Holden has already announced its plan to keep a design studio in Melbourne after it shuts its South Australian and Victorian manufacturing plants, and will also retain its Lang Lang proving ground to ensure imported models are calibrated for local conditions.

In May 2014 the president of GM International Operations (GMIO), Stefan Jacoby, reiterated Holden's commitment to local input, noting that Australian design and engineering are "critical assets for GM globally".

It is understood that Holden engineers Enterprise Bargaining Agreements (EBA) will be renegotiated in November, and remaining engineers will be redeployed throughout General Motors, both here and overseas.

GM Holden Senior Manager for Corporate Communications, Sean Poppitt, wouldn't be drawn on the possible job losses in October, stating that Holden is "absolutely committed to a long and orderly transition" for employees as the company winds down.

"We won't engage in speculation on timing or the number of employees impacted," he said.

"As announced last year, Holden's engineering workforce is largely tied to production of our locally-manufactured vehicles and as such our engineering workforce will be scaled back over time. The company currently has a Voluntary Separation Program open to engineering employees.

Holden has also localised a number of engineers to GM headquarters in Detroit where possible," stated Poppitt.

As GM Holden's Australian engineering team shrinks, Ford will become this country's largest automotive employer post 2017, as it will retain its Victorian design and engineering capabilities that have seen it develop global vehicles such as the Ford Ranger ute and upcoming Everest SUV.

Although local car companies' engineering departments are contracting, with Toyota also announcing it would cut its 160 employee numbers at the Toyota Technical Centre, car design is flourishing.

Toyota is expected to maintain Toyota Style Australia's 25 staff for regional vehicle and accessory design, Ford's 100-strong design team at Broadmeadows is tipped to double as it's global importance grows, and Holden's design studio will maintain its 140 staff who continue to play a key role for GM internationally, particularly in terms of concept car development.