Nearly three years after ending local production in Australia, General Motors announced this morning in Australia that Holden will cease to exist by the end of the year. The move will see 800 jobs going away and the closure of the Melbourne design studio and Lang Lang proving ground. In a statement, GM International Operations Senior Vice President Julian Blissett said the company made the difficult decision to close operations after varying attempts to try and rejuvenate the brand.
“Over recent years, as the industry underwent significant change globally and locally, we implemented a number of alternative strategies to try to sustain and improve the business, together with the local team.”
“After comprehensive assessment, we regret that we could not prioritize the investment required for Holden to be successful for the long term in Australia and New Zealand, over all other considerations we have globally. This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team,” explained Blissett.
A source tells CarAdvice that the decision to shutter Holden took place over the weekend, and also stressed that GM had "every intention of reviving the brand following the end of local manufacturing."
"Our intention was to turn around the brand ... there is zero blame to the local team," said the high ranking General Motors official. "This decision (about Holden) is all about investment priorities."
The decision to close down operations in Australia will also mark the end of right-hand drive vehicles which comprised of Australia, New Zealand, and Thailand. GM has been pulling out of RHD markets for the past three years with the United Kingdom and India being some of the big ones.
Holden hasn't been doing so well in sales since the end of local production. The past couple of years has seen the brand hemorrhaging sales as buyers went towards SUVs and smaller vehicles. A key example of the bleeding, the ZB Commodore only sold 5,915 units last year - a decrease of 34.6 percent.
There will still be a small remnant of GM in Australia throigh a new sub-brand that will sell a select models from the U.S., including the Camaro and Silverado.
Source: CarAdvice, CarsGuide, GoAuto, Which Car, General Motors
Press Release on Page 2
Holden Vehicle Sales, Design, and Enginnering To Cease in Australia and New Zealand
MELBOURNE – The Holden brand will be retired from sales in Australia and New Zealand and local design and engineering operations will wind down by 2021, General Motors (NYSE: GM) announced today. Maven and Holden Financial Services operations will also wind down in Australia.
GM International Operations Senior Vice President Julian Blissett said GM had taken the difficult decision after implementing and considering numerous options to maintain and turn around Holden operations.
“Through its proud 160-year history, Holden has not only made cars, it has been a powerful driver of the industrialization and advancement of Australia and New Zealand,” said Blissett.
“Over recent years, as the industry underwent significant change globally and locally, we implemented a number of alternative strategies to try to sustain and improve the business, together with the local team.”
GM undertook a detailed analysis of the investment required for Holden to be competitive beyond the current generation of products. Factors impacting the business case for further investment included the highly fragmented right-hand-drive markets, the economics to support growing the brand, and delivering an appropriate return on investment.
“After comprehensive assessment, we regret that we could not prioritize the investment required for Holden to be successful for the long term in Australia and New Zealand, over all other considerations we have globally,” said Blissett.
“This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team.”
GM intends to focus its growth strategy in Australia and New Zealand on the specialty vehicles business and plans to immediately work with its partner on developing these plans.
GM Holden Interim Chairman and Managing Director Kristian Aquilina said that given the significance of Holden through its history, it was critical the company worked with all stakeholders to deliver a dignified and respectful wind-down.
“Holden will always have a special place in the development of our countries. As Australia and New Zealand grew, Holden was a part of the engine room fuelling that development,” said Aquilina.
“Today’s announcement will be felt deeply by the many people who love Holdens, drive Holdens and feel connected to our company which has been with us for 160 years and is almost ubiquitous in our lives.
“Unfortunately, all the hard work and talent of the Holden family, the support of our parent company GM and the passion of our loyal supporters have not been enough to overcome our challenges.
“We understand the impact of this decision on our people, our customers, our dealers and our partners – and will work closely with all stakeholders to deliver a dignified and respectful transition.”
Holden customers can be assured that the company will honour all warranties and servicing offers made at time of sale. Holden will provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand. As required, Holden and its aftersales network will also continue to handle any recalls or safety-related issues if they arise, working with the appropriate governmental agencies.
Impacted Holden employees will be provided separation packages and employment transition support.
Holden will work with its dealer network on appropriate transition arrangements, including offering dealers the opportunity to continue as authorized service outlets to support Holden customers.
Holden Customer Care is available to answer customer inquiries and all warranties and service agreements. Holden customers in Australia can call 1800 46 465 336 or visit www.holden.com.au; Holden customers in New Zealand can call 0800 465 336 or visit www.holden.co.nz.
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