04.11.2012
GM Gets $275 Million Government Subsidy in Australia
original article written by Net Advisor™
Sydney, Australia. U.S. Auto Manufacturer General Motors (NYSE: GM) received a $275 Million (U.S. Dollar) government subsidy “handout” from the Australian government. GM apparently was going to pull jobs out of Australia and move them to lower cost producing countries until it came to a financial arrangement with the Australian government.
“The subsidy is made up of $215 million from the federal government, A$50 million from the South Australian state government and A$10 million from the Victorian state government. “
— Source: Singapore Straits Times (Story #780914 gone) (note: the amounts $215 Million is in Australian Dollars. The $363 million is in Singapore’s local currency).
The Australian government caved in to GM’s demands in exchange for that GM will continue to produce cars (keep local Australian jobs) for another tens years. GM was considering to pull out of Australia.
“We were faced with the very real prospect of Holden closing its Australian operations.”
— Source: Jay Weatherill, South Australian Premier, Published by Government News.AU (PDF)
General Motors Exporting More Jobs After Government Bailout?
GM announced on March 25, 2012 that the U.S. government controlled automotive company will be shifting more jobs to “low-cost countries.”
“General Motors Co. (GM) is planning to shift more of its production to low-cost countries including Poland, Russia, China, India, Mexico and Brazil.”
It looks like the United States isn’t a “low cost country,” so those jobs won’t be coming to the USA anytime soon even though the U.S. taxpayer (the Treasury) controls 30% of GM’s outstanding shares (Source: NY Times PDF – highlight added).
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