Australia has announced plans to set up a A$100m ($90m; £55m) fund to create jobs in states affected by Holden’s decision to stop making cars there.
Holden, a subsidiary of General Motors, said last week that it would stop production in Australia by 2017.
The move will result in 2,900 people losing their jobs in the states of Victoria and South Australia.
There have been fears that Holden’s decision may impact growth and result in job losses in related sectors.
The federal government will contribute A$60m to the fund, with the Victorian state government putting in A$12m.
Prime Minister Tony Abbott said he hoped that Holden would contribute $20m and that he would also be asking for a contribution from South Australia “in the same order as Victoria’s”.
However, South Australia has criticised the package, calling it “manifestly inadequate”.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.