Holden To End Australian Manufacturing By 2017, Transition To "Sales Company"

Derek Kreindler
by Derek Kreindler

Holden informed the Australian federal and state level governments that it will cease car production in Australia by 2017, citing a “perfect storm” of unfavorable exchange rates, high production costs and a small but competitive car market that has seen sales of traditional Australian-made rear-drive sedans and Utes plummet in recent years. An estimated 3000 workers are said to be directly affected by the closure of Holden’s manufacturing facilities.

The news delivered a crushing blow to an industry still reeling from Ford’s departure earlier this year. Shortly afterwards, Holden appeared to re-affirm its commitment to Australia, but now it appears to be for naught. In a prepared statement, outgoing GM boss Dan Akerson said

“We are completely dedicated to strengthening our global operations while meeting the needs of our customers.

The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”

Long-time TTAC readers will be familiar with our extensive coverage of Holden’s on-again off-again manufacturing decision. At first, there was said to be two new global sedans, including a new Commodore (said to be based on the front-drive Epsilon II architecture), with Holden boss Mike Devereux publicly committing to building a new Commodore in Australia at the launch of the most recent generation.

Just as TTAC predicted, Holden will become a “national sales company”, presumably importing GM cars made in Korea, Thailand and even China. The Thai built Colorado and Korean built Cruze and Malibu will comprise the future of Holden’s lineup, as demand for the Commodore and Ute has fallen consistently. In addition to the aforementioned factors, the end of protectionist tariffs on imported cars is also cited by many as the downfall of the traditional Australian car, with consumers opting en masse for Thai-built trucks and more fuel efficient Japanese, Korean and European vehicles.

Derek Kreindler
Derek Kreindler

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  • Lightspeed Lightspeed on Dec 11, 2013

    The only Holden I drove was a V6 Pontiac G8 when they were closing Pontiac. It was a nice car at the blow-out price of $24K CDN (par with US at the time) but, at the list-price of $37K, not so much.

  • Mandalorian Mandalorian on Dec 11, 2013

    I think in the US and North America, we tend to view Holden with rose-tinted spectacles, seeing it as a lovable All-Aussie underdog that makes precious V8 Muscle cars and El Caminos. The reality may be a bit different. Think GM circa 2007/8.

  • Arthur Dailey Good. Whatever upsets the Chinese government is fine with me. And yes they are probably monitoring this thread/site.
  • Jalop1991 WTO--the BBB of the international trade world.
  • Dukeisduke If this is really a supplier issue (Dana-Spicer? American Axle?), Kia should step up and say they're going to repair the vehicles (the electronic parking brake change is a temporary fix) and lean on or sue the supplier to force them to reimburse Kia Motors for the cost of the recall.Neglecting the shaft repairs are just going to make for some expensive repairs for the owners down the road.
  • MaintenanceCosts But we were all told that Joe Biden does whatever China commands him to!
  • Rick T. If we really cared that much about climate change, shouldn't we letting in as many EV's as possible as cheaply as possible?
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