General Motors to retire Holden brand from sales by 2021, leave Australia

The Prime Minister has ripped into General Motors for allowing the Holden brand to “wither” – while taking more than $2 billion from taxpayers over the years.

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A furious prime minister says General Motors took billions of dollars in government subsidies only to let the Holden brand die and then walk away from the Australian market.

The Holden brand, an integral part of South Australia’s history for more than 160 years, will cease to exist next year, GM has announced in a shock decision.

In a huge blow for diehard Holden fans going into this week’s Superloop Adelaide 500, US company General Motors has announced Holden will be retired from sales by 2021.

It will close all local design and engineering operations by 2021 and retiring the Holden brand from sales in Australia and New Zealand, with about 600 people to lose their jobs in June.

“I am angry,” Scott Morrison said, noting governments had contributed more than $2 billion to General Motors.

“They took money from Australian taxpayers for all those years just to let the Holden brand wither on their watch – that’s disappointing.

“Throwing all that taxpayers’ money at them – at the end of the day they were never going to respect it.”

Mr Morrison vowed to look after the workers who will lose their jobs, stating Canberra would “work with them to ensure they can move into new industries”.

The company closed its Elizabeth car manufacturing plant in October 2017, bringing to an end car manufacturing in South Australia, although there were still design and engineering operations based in Melbourne.

The final two Holden Cruze cars made at SA’s Elizabeth plant in 2016 were donated to the Leukaemia Foundation. Picture: Calum Robertson

GM announced on Monday it would stop producing right-hand drive vehicles. Holden has sold those in Australia with its badge since local manufacturing ended in 2017.

It also announced plans to shut a car plant in Thailand and withdraw the Chevrolet brand from the market there.

Together the two shutdowns will cost the global motoring giant more than $1 billion.

Federal Industry Minister Karen Andrews earlier on Monday said she was “very disappointed” with Holden’s decision to exit.

“A lot of money has been given to these car manufacturers to try and support them … that makes it particularly disappointing that they have made the decision that they have,” she said.

“Holden is walking away from Australia.”

Ms Andrews – whose first car was a Holden Torana – was furious the government was only informed of Holden’s decision minutes before Monday’s public announcement.

“I don’t think it’s acceptable for Holden to have made this decision without any consultation with government,” she said, suggesting it lacked goodwill and decency.

The minister said she would make a call to car manufacturer Ford about its plans in Australia.

GM International Operations Senior Vice President, Julian Blissett, said the “overwhelming majority” of Holden staff would lose their jobs by the end of June 2020.

“This was an agonising decision for us and one we didn’t make lightly or easily,” Mr Blissett said at a press conference.

GM said 600 workers would leave by June, and 200 would remain in ongoing roles linked with the company’s commitment to offer at least 10 more years of customer service to owners of the 1.6 million Holdens in circulation.

The decision blindsided Holden owners, dealerships and sponsorpartners ahead of this week’s Superloop Adelaide 500.

Holden dealerships, of which there are 185 nationwide and at least 15 in South Australia, will be offered “appropriate transition packages” for their businesses, many of which have been built up over decades.

Holden was a dominant force in Australian car sales for decades, with a 27.5 per cent share of the market in the year 2000.

The last Holden Commodore is made at the Elizabeth plant on October 20, 2017.

That share dwindled rapidly however, with the influx of many new models and a swing away from large, high-powered vehicles such as V8s to sports utility vehicles and small, more economical cars.

The Holden versus Ford rivalry was also a crucial part of Australia’s motorsport history with the two for many years battling for supremacy in touring car racing.

Last calendar year Holden posted its lowest sales since 1954, selling about 43,000 vehicles out of a total of more than a million sold across Australia.

Holden sales have halved in just two years since it closed the Elizabeth plant.

Mr Blissett said GM had taken the difficult decision after looking at various options to turn around the Holden operations.

“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,” he said.

“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.

“This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team.”

The company said given the significance of the Holden brand “it was critical the company worked with all stakeholders to deliver a dignified and respectful wind-down’’.

GM said all warranties and servicing offers would be honoured and Holden will provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand.

Holden employees will be provided separation packages and employment transition support while dealerships would be assisted with “appropriate transition arrangements”, including the opportunity to continue as authorised service outlets.

Supercars teams and officials say they’ll hold urgent discussions with GM-Holden, with the decision sending a shockwave through the Supercars field just days before the start of this year’s championship at the Adelaide 500.

It has refused to commit to remaining part of Supercars beyond 2020.

While Holden said it would fulfil its commitment to the championship this year, it was less certain about having a presence in Australian motorsport into the future.

“Our intention is still to go racing in 2020 whilst we’ve still got Holden vehicles out there in dealer showrooms,” Holden’s interim chairman and managing director Kristian Aquilina said.

“To the extent, about GM and its involvement in racing beyond that, that will be part of the same conversation.”

Holden provides factory backing to the Red Bull Holden Racing Team featuring former champions Jamie Whincup and Shane van Gisbergen.

MORE TO COME

– with AAP