Recent news reports have revealed that General Motors (GM) will be pulling its Chevrolet brand out of major markets in Europe. GM has now confirmed that its Australian subsidiary, Holden, will stop making cars Down Under by the end of 2017.
It is reported that 2,900 Australian people will lose their jobs as a result of the closure. It’s a sad and disappointing end for the famous Holden marque, which can trace its history back as far as 1856. It was founded as a saddlery maker by British immigrant, James Holden, before moving into the automotive field in 1908. Holden became a subsidiary of GM in 1931, and it was renamed as General Motors Holden Ltd, before latterly returning to its original Holden name.
The Holden brand has a proud history in Australia, but has been struggling since the 1970s. Holden’s rapid downturn in profitability has been due to a failure to exploit a sustainable export market and inability to tackle the threat of Japanese manufacturers.
Toyota has been the best-selling marque in Australia for the past decade. In 2011, Mazda 3 became the top-selling model, toppling the mighty Commodore.
For many years, Holden has relied on government support just to survive. But according to the Australian Broadcasting Corporation (ABC), the Prime Minister, Tony Abbott, has declared there would be no more taxpayer assistance.
With Ford ceasing production in 2016 and Holden shutting down a year later, Australia is left facing the prospect of having Toyota as the only company making cars in the country.
But there could be worse to come. According to Dave Smith, national secretary of the vehicle division at the Australian Manufacturing Workers Union, there’s no guarantee that Toyota will stay in Australia, claiming it was ‘highly likely’ that the Japanese giant would go.
