General Motors (GM) has shocked the automotive market today with news it will almost entirely leave Australian markets with its iconic Holden brand with it. GM has made the difficult decision after implementing and considering numerous options to maintain and turn around Holden operations.

International Operations Senior Vice President, Julian Blissett says, “Through its proud 160-year history, Holden has not only made cars, it has been a powerful driver of the industrialisation and advancement of Australia and New Zealand.

“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.”

Sales, design and engineering operations will wind down by 2021 in both Australia and New Zealand, while Holden Financial Services and Maven in Australia will come to an end.

In a statement today Holden indicated staff will receive exit and transition packages, while work will begin soon on ending dealer arrangements, with some being offered the chance to remain parts and service outlets. There are 800 Holden employees across Australia and New Zealand, with 185 dealers in Australia and 31 in New Zealand. In a phone conference held today, the company indicated most of the staff will have departed by June this year.

The company says it undertook a detailed analysis of the investment required for Holden to be competitive into the future, but this was impacted by the smaller 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 prioritise the investment required for Holden to be successful for the long term in Australia and New Zealand, over all other considerations we have globally,” says Blissett.

Holden says it will honour all warranties and pre-paid service contracts on its vehicles and offer parts for at least ten years though Aftersales networks.

Source: http://autotalk.com.au/industry-news/breaking-holden-brand-gm-exits-australasia

17 Feb 2020