BREAKING: Holden U-turns on engineers

Holden has backflipped on its decision to sack key engineering resources. The decision to retain key local capability was made last week, following a meeting in Melbourne which included senior US execs from General Motors.

A statement is expected within hours [Ed: see UPDATE below].

motoring.com.au believes that retrenchment for Holden engineering staff is now on hold. Indeed, according to insiders, the company has decided to retain a “significant amount of resource” focussing on its local drivetrain calibration operation.

Although a number of key engineer staff have already left Holden, the core of the division is still in situ.

Holden’s team is one of the most qualified in the GM world. The company has up-to-date local facilities and can carry out a range of engineering programs from initial calibrations right through to production-ready finished vehicles.

With General Motors expected to significantly overhaul its engine and gearbox suite via the introduction of mild and full hybrid and other technologies in the next five years, experienced powertrain engineers are at a premium. In the Aussie tradition of doing more with less, one key strength of the Holden engineers is their ability to troubleshoot and finesse calibrations across a range of emission and CO2 related regulatory environments.

motoring.com.au believes it’s this skill set that has saved the local operation and will be leveraged by General Motors.

Also key to the decision is the devaluation of the Australia dollar. This effectively makes Aussie resources up to 25 per cent cheaper than when decisions were made to axe the local operation in late 2013.
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UPDATE: Following the publication of motoring.com.au’s scoop news earlier this morning, GM Holden has confirmed it will retain a “significant number of engineering positions”.

The company’s official statement via spokesperson, Senior Manager – External Communications Kate Londsale reads:

“We can confirm there will be a significant number of Engineering positions retained at GM Holden. While this is good news, we are still working through project details and our staffing requirements.

“As always, we will work closely with our workforce as we determine exactly what is required. At that point, we will be able to make a full public announcement.”