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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. View full article -
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. -
And then there were none. Toyota announced today at their Altona plant on the western outskirts of Melbourne that the company would end local production in 2017 and transition into a sales and distribution company. The move will affect 2,500 manufacturing jobs. "This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years,"said Toyota Australia President and CEO Max Yasuda. "While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision. We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia. Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts." The decision comes a few months after Holden and Ford announcing they would be shuttering their production operations in Australia and become a a sales and distribution company. Toyota's reasoning behind the closing is the same as Ford and Holden; the high value of the Australian dollar, high cost of production, and new free trade agreements. Source: Drive.com.au, Toyota William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 10 February 2014 TOYOTA AUSTRALIA ANNOUNCES FUTURE PLAN FOR LOCAL MANUFACTURING Toyota Australia today announced that it will stop building cars in Australia by the end of 2017 and become a national sales and distribution company. This means that local manufacturing of the Camry, Camry Hybrid and Aurion vehicles, as well as the production of four cylinder engines, will cease by the end of 2017. The decision was not based on any single factor. The market and economic factors contributing to the decision include the unfavourable Australian dollar that makes exports unviable, high costs of manufacturing and low economies of scale for our vehicle production and local supplier base. Together with one of the most open and fragmented automotive markets in the world and increased competitiveness due to current and future Free Trade Agreements, it is not viable to continue building cars in Australia. Toyota Australia President and CEO, Max Yasuda, was joined by Toyota Motor Corporation President and CEO, Akio Toyoda, as he made the announcement to employees late this afternoon. "This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years," Mr Yasuda said. "While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision "We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia. "Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts. "Our focus will now be to work with our employees, suppliers, government and the unions as we transition to a national sales and distribution company. Support services will be available to our employees and we will do everything that we can to minimise the impact of this decision on our employees and suppliers." Mr Yasuda said approximately 2,500 employees directly involved with manufacturing will be impacted when the plant stops building cars in 2017. There will also be an impact on the company's corporate divisions, which will be studied over the coming months to determine what roles and functions will remain in the future. Mr Yasuda said that Toyota was also committed to providing support to the industry as it prepares for the end of vehicle manufacturing in Australia. "We will work with our key stakeholders to determine how to provide the best support to our employees, suppliers and local communities during the coming years," Mr Yasuda said. "Not only do we need to ensure our local suppliers and employees can plan for their future, we also need to make sure that we continue to produce high quality vehicles and engines for our domestic and export customers." Toyota Australia will continue to be involved in its local communities and employ thousands of people both directly and indirectly via its extensive dealership network. It is the company's intention to import the Camry and Aurion vehicles beyond 2017, along with the entire range of Toyota passenger and commercial vehicles. View full article
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And then there were none. Toyota announced today at their Altona plant on the western outskirts of Melbourne that the company would end local production in 2017 and transition into a sales and distribution company. The move will affect 2,500 manufacturing jobs. "This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years,"said Toyota Australia President and CEO Max Yasuda. "While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision. We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia. Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts." The decision comes a few months after Holden and Ford announcing they would be shuttering their production operations in Australia and become a a sales and distribution company. Toyota's reasoning behind the closing is the same as Ford and Holden; the high value of the Australian dollar, high cost of production, and new free trade agreements. Source: Drive.com.au, Toyota William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 10 February 2014 TOYOTA AUSTRALIA ANNOUNCES FUTURE PLAN FOR LOCAL MANUFACTURING Toyota Australia today announced that it will stop building cars in Australia by the end of 2017 and become a national sales and distribution company. This means that local manufacturing of the Camry, Camry Hybrid and Aurion vehicles, as well as the production of four cylinder engines, will cease by the end of 2017. The decision was not based on any single factor. The market and economic factors contributing to the decision include the unfavourable Australian dollar that makes exports unviable, high costs of manufacturing and low economies of scale for our vehicle production and local supplier base. Together with one of the most open and fragmented automotive markets in the world and increased competitiveness due to current and future Free Trade Agreements, it is not viable to continue building cars in Australia. Toyota Australia President and CEO, Max Yasuda, was joined by Toyota Motor Corporation President and CEO, Akio Toyoda, as he made the announcement to employees late this afternoon. "This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years," Mr Yasuda said. "While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision "We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia. "Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts. "Our focus will now be to work with our employees, suppliers, government and the unions as we transition to a national sales and distribution company. Support services will be available to our employees and we will do everything that we can to minimise the impact of this decision on our employees and suppliers." Mr Yasuda said approximately 2,500 employees directly involved with manufacturing will be impacted when the plant stops building cars in 2017. There will also be an impact on the company's corporate divisions, which will be studied over the coming months to determine what roles and functions will remain in the future. Mr Yasuda said that Toyota was also committed to providing support to the industry as it prepares for the end of vehicle manufacturing in Australia. "We will work with our key stakeholders to determine how to provide the best support to our employees, suppliers and local communities during the coming years," Mr Yasuda said. "Not only do we need to ensure our local suppliers and employees can plan for their future, we also need to make sure that we continue to produce high quality vehicles and engines for our domestic and export customers." Toyota Australia will continue to be involved in its local communities and employ thousands of people both directly and indirectly via its extensive dealership network. It is the company's intention to import the Camry and Aurion vehicles beyond 2017, along with the entire range of Toyota passenger and commercial vehicles. -
William Maley Staff Writer - CheersandGears.com December 10, 2012 Opel announced today that it will close the Bochum plant in Germany in 2016 when production of the current Opel Zafira ends. "Despite rigorous efforts, there was no success in changing the situation. The main reasons are the dramatic declines in the European car market and the enormous overcapacity in the entire European auto industry," Opel said in a statement today. The closure is part of a long-term recovery plan called Drive Opel 2022. Under the plan, Opel will work on trying to be more cost efficient, improving the brand's image, strengthen market share, and entering new markets and segments. The plan also says by 2016, Opel will have 23 new models and 13 new engines. The closure of Bochum also means the loss of 3,300 jobs. Opel says they will preserve some jobs in its Bochum warehouse and is looking at allocating new component production to the region. Local labour leader Rainer Einenkel says the union is hopeful about trying to save Bochum. Meanwhile, the German government expects GM to provide severance packages for the workers. "It's a severe blow that affects a lot of people and their families and the Bochum region as well. The German government has the expectation that the parent company General Motors will do everything possible to find socially acceptable solutions," said Georg Streiter, spokesman for German Chancellor Angela Merkel. Source: Opel, Automotive News Europe (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 Opel plans to end car production in Bochum in 2016 2012-12-10 Warehouse to remain in Bochum and probably to be expanded New component production could be allocated in Bochum Initiative "Bochum Perspective 2022“ to secure existing and create new jobs Goal: No forced redundancies before run-out of current Zafira Attractive separation packages Germany stays backbone and home of Opel Announcement is part of long-term plan “Drive! 2022” Ruesselsheim. Adam Opel AG management today informed its employees that vehicle production is planned to end in Bochum at the end of the current Zafira lifecycle – expected in 2016. In June, Opel announced that no successor to the current Zafira is planned to be allocated in Bochum in view of the shrinking European car market and the overcapacities in the automotive industry. Despite intensive efforts this situation could not be changed. The warehouse in Bochum will continue to offer jobs beyond 2016 and could be expanded. Additionally, Opel is negotiating with the employee representatives to allocate a new component production in Bochum. On top of this, the working group “Bochum Perspective 2022”, which was recently established by Opel, has the objective to focus on site development, to secure existing jobs and create new ones in the City of Bochum and the entire Ruhr region. “Bochum Perspective 2022” is composed of representatives of local and regional government, along with leaders and innovators from labor, industry, academia and financial institutions located in North Rhine-Westphalia. Opel will support the initiative financially and personnel-wise. “Building on the Bochum Perspective 2022, we have a clear goal for securing a significant number of tariff-bound jobs at Adam Opel AG. They include positions in our warehouses and potentially component production. Opel takes its responsibility seriously and will implement still-necessary job reductions in the most socially responsible way. The goal of our negotiations with the works council is to refrain from forced redundancies before the run-out of the current Zafira,” said Steve Girsky, GM Vice Chairman, Chairman of the Opel Supervisory Board and Acting President of GM Europe. "Germany is our most important market and with about 20,000 employees the backbone and home of our brand. And this will stay this way in the future,” Opel Deputy CEO Dr. Thomas Sedran said. Opel also has the responsibility for its independent dealers; in North-Rhine-Westphalia alone there are 320 Opel dealers who employ about 5,300 employees. This move is part of the company’s long term plan “Drive Opel 2022” which targets break-even results by mid-decade. Opel plans to increase its revenue and variable profit significantly by more cost-efficiency, re-focusing its go-to-market strategy, improving the image of the Opel brand, strengthening the quality of market share and entering new markets and segments. From 2012 to 2016, Opel will launch 23 new models and 13 new engines in total. View full article
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William Maley Staff Writer - CheersandGears.com December 10, 2012 Opel announced today that it will close the Bochum plant in Germany in 2016 when production of the current Opel Zafira ends. "Despite rigorous efforts, there was no success in changing the situation. The main reasons are the dramatic declines in the European car market and the enormous overcapacity in the entire European auto industry," Opel said in a statement today. The closure is part of a long-term recovery plan called Drive Opel 2022. Under the plan, Opel will work on trying to be more cost efficient, improving the brand's image, strengthen market share, and entering new markets and segments. The plan also says by 2016, Opel will have 23 new models and 13 new engines. The closure of Bochum also means the loss of 3,300 jobs. Opel says they will preserve some jobs in its Bochum warehouse and is looking at allocating new component production to the region. Local labour leader Rainer Einenkel says the union is hopeful about trying to save Bochum. Meanwhile, the German government expects GM to provide severance packages for the workers. "It's a severe blow that affects a lot of people and their families and the Bochum region as well. The German government has the expectation that the parent company General Motors will do everything possible to find socially acceptable solutions," said Georg Streiter, spokesman for German Chancellor Angela Merkel. Source: Opel, Automotive News Europe (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 Opel plans to end car production in Bochum in 2016 2012-12-10 Warehouse to remain in Bochum and probably to be expanded New component production could be allocated in Bochum Initiative "Bochum Perspective 2022“ to secure existing and create new jobs Goal: No forced redundancies before run-out of current Zafira Attractive separation packages Germany stays backbone and home of Opel Announcement is part of long-term plan “Drive! 2022” Ruesselsheim. Adam Opel AG management today informed its employees that vehicle production is planned to end in Bochum at the end of the current Zafira lifecycle – expected in 2016. In June, Opel announced that no successor to the current Zafira is planned to be allocated in Bochum in view of the shrinking European car market and the overcapacities in the automotive industry. Despite intensive efforts this situation could not be changed. The warehouse in Bochum will continue to offer jobs beyond 2016 and could be expanded. Additionally, Opel is negotiating with the employee representatives to allocate a new component production in Bochum. On top of this, the working group “Bochum Perspective 2022”, which was recently established by Opel, has the objective to focus on site development, to secure existing jobs and create new ones in the City of Bochum and the entire Ruhr region. “Bochum Perspective 2022” is composed of representatives of local and regional government, along with leaders and innovators from labor, industry, academia and financial institutions located in North Rhine-Westphalia. Opel will support the initiative financially and personnel-wise. “Building on the Bochum Perspective 2022, we have a clear goal for securing a significant number of tariff-bound jobs at Adam Opel AG. They include positions in our warehouses and potentially component production. Opel takes its responsibility seriously and will implement still-necessary job reductions in the most socially responsible way. The goal of our negotiations with the works council is to refrain from forced redundancies before the run-out of the current Zafira,” said Steve Girsky, GM Vice Chairman, Chairman of the Opel Supervisory Board and Acting President of GM Europe. "Germany is our most important market and with about 20,000 employees the backbone and home of our brand. And this will stay this way in the future,” Opel Deputy CEO Dr. Thomas Sedran said. Opel also has the responsibility for its independent dealers; in North-Rhine-Westphalia alone there are 320 Opel dealers who employ about 5,300 employees. This move is part of the company’s long term plan “Drive Opel 2022” which targets break-even results by mid-decade. Opel plans to increase its revenue and variable profit significantly by more cost-efficiency, re-focusing its go-to-market strategy, improving the image of the Opel brand, strengthening the quality of market share and entering new markets and segments. From 2012 to 2016, Opel will launch 23 new models and 13 new engines in total.
