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.November 12, 2003
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This Week:

• Infiniti Introduces All-New QX56 Full-Size Luxury SUV

• The Minivan Formula

• Hyundai Names Newest SUV the Tucson

• BMW X3 Makes Official North American Auto Show Debut At South Florida International Auto Show

• Luxury Volkswagen Phaeton Arrives to Miami Auto Show - 'Represents Great Value in German Luxury Class'

• Toyota Announces $15 Million Expansion Of Facility In Erlanger, Kentucky

• Porsche sales up 85 percent in North America

• $400 Million Engine Plant Powers Holden's Global Drive

• Flagship Diesel Engine To Be Built At Dagenham

• Federal-Mogul Announces Joint Venture in Turkey

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$400 Million Engine Plant Powers Holden's Global Drive
 

General Motors today opened its largest single investment in Australia in more than 20 years - Holden's $400 million global V6 engine plant in Port Melbourne, Victoria. The plant will generate up to 900 engines a day or 240,000 engines a year, with capacity to expand to 300,000 engines a year, which will ultimately create more than 500 jobs. The Port Melbourne facility is Holden's first new engine plant in 22 years and will deliver fully locally produced six-cylinder engines for the first time since 1986. Holden expects to generate up to $450 million a year in V6 engine exports, boosting the company's contribution to balance of trade to more than $1.5 billion a year.

The global V6 engine family will be exported to GM brands around the world and power future Holdens for domestic and overseas markets.

GM Chairman and Chief Executive Officer, Rick Wagoner, today joined senior representatives of Holden, the Federal and State Governments and industry unions to inaugurate the new plant, situated to the west of Holden's facilities in Port Melbourne. Mr Wagoner was joined by Holden Chairman and Managing Director, Peter Hanenberger; the Premier of Victoria, the Hon. Steve Bracks; Federal Minister for Industry, Tourism and Resources, the Hon. Ian Macfarlane; and ACTU President Sharan Burrow,

More than 2000 Holden employees were invited to the event, celebrating the most significant development for Holden since it invested $300 million in a high-volume four-cylinder engine plant and foundry which opened at Fishermans Bend in 1981 and remains an integral part of Holden's operations.

The Port Melbourne facility is the second GM operation to manufacture the global V6 engine.

Holden will share this responsibility with the GM of Canada plant in St Catharines, Ontario, which commenced production in March 2003. St Catharines also produces the Generation III 5.7 litre V8 engine for Holden and Holden Special Vehicles cars.

The first engines from the Port Melbourne plant are destined for GM de Mexico, where they will be installed into the 2004 model Buick Rendezvous crossover vehicle.

These engines will power future Holdens from 2004 and plans are being developed to export to other markets in the United States, Europe and Asia.

The global V6 engine family was developed by GM Powertrain, which has a mission to develop the world's best powertrains. The engine boasts all-aluminium construction and comes in three displacement sizes - 2.8 litre, 3.2 litre and 3.6 litre - with the capacity to be expanded to 3.8 litre.

The all-aluminium construction offers features such as dual overhead camshafts, 24-valve per engine and continuously variable cam phasing. The engines can be used for front, rear or all wheel drive vehicles and are compatible with hybrid electric applications.

High-Tech Manufacturing Facility

The Port Melbourne facility's contribution to Australia runs far beyond the initial investment of $400 million.

The ultimate commitment, with supplier investment, is estimated to grow to $700 million by mid-decade and stimulate further investment in the process. As an example, Ion Automotive announced in October 2002 that it would supply engine blocks from 2006.

The 32,000 square metre facility was constructed and designed by Baulderstone Hornibrook and Connell Wagner. Marubeni Corporation led a consortium to manage the design, development, construction and installation of high-tech machinery manufactured largely in Japan.

The plant has three machining and sub-assembly lines for the engine's block, crankshaft and cylinder heads. The engines are then built on a common assembly line before being sent to domestic or export customers. The layout allows for the removal of internal forklift usage, an important employee safety initiative.

Holden has employed leading environmental practices, including regulated temperature control and mist extraction for employees as well as modern recycling techniques.

Access Economics estimated in 2001 that the engine plant would add $5.2 billion to Australia's total economic benefit over the life of the program, as well as a total of 8000 flow-on jobs throughout the community.

The $400 million investment is part of Holden's $2 billion capital program in Australia between 2001 and 2006. It also includes a range of upgrades totalling $408 million in the general assembly area of Holden's vehicle manufacturing operations in Elizabeth, South Australia.

Holden also hired 1000 new employees at Elizabeth to introduce a third shift in June, increasing the company's overall workforce to about 9000.

(November 5, 2003)