South Australian Premier Jay Weatherill is in "serious talks" with Holden on a breach of agreement. Source: AAP
SOUTH Australian Premier Jay Weatherill will have "serious talks" with Holden about a breach of agreement and says it's wrong the car maker didn't warn of trouble ahead of launching its Cruze model last month.
Holden boss Mike Devereux announced on Monday it will cut 400 jobs at its factory in Adelaide and 100 at its plant in Melbourne.
Mr Weatherill says the government and the car maker celebrated the launch of the company's Cruze model in March.
"There was no mention of such a dramatic decision that was about to be announced," he told ABC television on Monday.
"That is wrong."
The premier said Holden's decision to axe jobs was in breach of a 2012 agreement to provide Holden with $50 million from his state to develop two new cars and guarantee the future of local operations until 2022.
He said the state had not paid the $50 million to Holden and they would have to discuss the future.
South Australia deserved better, Mr Weatherill said.
"There are a range of important undertakings in that agreement that I want to ensure that are delivered to South Australians," he said.
"We need to have some serious discussions with the company."
The government had been working with Holden to use Australian component suppliers in a global supply chain.
They also wanted Holden at the Elizabeth plant to be part of the global supply chain, not just a part of the domestic supply chain.
Mr Weatherill said Holden gave him little notice about the decision and Mr Devereux had only told him on Monday morning.
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