Fairfax reports the assistance package from the state and federal governments is worth $200-$250 million, and could see a new model added to Holden’s Elizabeth production line in South Australia.
Prime Minister Julia Gillard and South Australian Premier Jay Weatherill will reportedly join GM Holden chairman and managing director Mike Devereux in Canberra today to make the announcement.
Reports of the deal will be welcome news to the circa-2500 employees at Elizabeth and the thousands of other Australians who work for Holden parts suppliers.
The General Motors-owned manufacturer previously said it could make no commitment to continue building cars in Australia beyond the lifecycle of the current Commodore (which will run until 2015-2016) without assistance from the government.
The news follows a $103 million co-investment deal in January that will see Ford produce cars in Australia until 2016. The federal government contributed $34 million to that package, while the Victorian government’s investment was believed to be $15-$20 million.
Holden is expected to make an official announcement today, and CarAdvice will bring further reports.