Holden boosts V6 engine production

The company is expected to ramp up production from 6000 engines a year to 20,000 over the next four years.

The engines will go to Shanghai General Motors, a joint venture partnership between General Motors and the Shanghai Automotive Industry Corp. They are expected to be used in a range of GM China cars, including the Buick Park Avenue, a model based on the locally built Holden Statesman.

However, GM-Holden spokesman, Scott Whiffin, was unable to confirm Lutz's comments. "The priority for GM has been exiting chapter 11 bankruptcy proceedings," he said.

GM-Holden cancelled its export plans for the Commodore-based Pontiac G8 when GM axed its Pontiac brand in May. However, within hours of the New GM emerging from chapter 11 bankruptcy last Friday, Lutz was on the offensive.

He said Commodore exports were likely to recommence because of existing export agreements with GM-Holden and the fact that it already built the Commodore as a Chevy for the Middle East.

The car industry this week has been buoyed by Federal Industry Minister, Senator Carr's visit to China spruiking the local industry. Carr said several Chinese carmakers were keen on Australian know-how. "There are opportunities for expansion in transmissions through Geely and new investment opportunities with Chery Motors," he said. "We're seeing quite a wide range of possibilities of new technologies and new markets for Australian suppliers. "There are huge opportunities here in terms of broadening our collaborations and diversifying our opportunities."

The Chinese vehicle market is defying the global auto downturn as it continues to fast-track its own industry. Vehicle sales are set to hit 10 million sales this year.