Holden was considering a plan to rebadge Chinese cars, to keep its showrooms open in Australia, in the year leading up to its shutdown announcement, secret documents have revealed.
Internal documents seen by Nine Entertainment Co showed Holden executives were looking at a close tie-up with Chinese brands MG and LDV for a range of cheap cars, SUVs, utes, and vans to supplement its existing range of vehicles.
As US car giant General Motors began to withdraw from key right-hand-drive markets globally, Holden executives were exploring a controversial plan to keep its showrooms open by sourcing vehicles from new business partners.
It’s a year ago this month that General Motors announced the Holden brand would be retired by the end of 2020.Credit: Joe Armao
After Holden stopped manufacturing cars in Australia in October 2017 – when it sold a mix of locally made and imported vehicles – the company became solely reliant on vehicles sourced from Thailand, South Korea, Mexico and the US.
The imported Holden Commodore was sourced from Germany and the Holden Astra was made in the UK. However, with the imported Commodore and Astra models due to be phased out after General Motors sold its European division, it left Holden with a sparse line-up of cars.
According to documents, senior Holden executives investigated a plan to supplement its dwindling line-up with vehicles from Chinese manufacturers MG and LDV, some of which would be badged as Holdens.
General Motors had established links with China in 1997, manufacturing cars there in a joint venture with the giant Shanghai Automotive Industry Corporation, so the lines of communication were already open.
Documents seen by Nine outlined a future vision for Holden showrooms that relied on China-sourced MG cars and SUVs and LDV utes and vans – to sell alongside the Thailand-built Holden Colorado ute, US-made Holden Acadia seven-seater, and the Holden Equinox from Mexico.
However, General Motors pulled the pin on Holden altogether – a year ago this week – before local executives could explore the China plan further.
Had the radical proposal gone ahead, only the badges would have been Holden – the majority of the vehicles in its showrooms would have been made in China.
In August 2020 during a Senate inquiry into the Holden shutdown and dealer compensation packages, Holden boss Kristian Aquilina was asked if General Motors had any plans to sell the famous lion badge to SAIC or any other Chinese manufacturer.
Queensland senator James McGrath said to Mr Aquilina: “We’ve seen MG, a famous British automobile company, is now owned by a Shanghai-based, state-owned company in China. Can you give us an assurance that General Motors won’t sell off the Holden brand to a state-owned brand in China, or indeed any other company?”
Mr Aquilina replied: “I’m not going to address any hypotheticals, but I want to assure you … Holden remains within … General Motors ownership. We expect to trade with that trademark and that brand for a long period into the future.”
The Holden boss indicated it was necessary for General Motors to retain ownership of the Holden badge because the company planned to continue to offer parts and service support locally for “at least” the next 10 years.
The revelation of Holden’s potential Chinese tie-up comes as late-model Commodore V8s are fetching record prices at auction.
Earlier this month, a Holden Special Vehicles Maloo GTSR W1 ute sold for $1.05 million. However that record was short-lived, overtaken earlier this week by a 1971 Ford Falcon GTHO Phase III sedan that went under the hammer for $1.15 million.
Last Tuesday, February 17, was 12 months to the day since General Motors announced the Holden brand would be retired by the end of 2020.