Holden’s retirement: What it means

General Motors’ shock decision to axe Holden sent shockwaves across the nation. Here’s what will happen to your car warranty, V8 Supercars racing and Holden dealers.

GENERAL Motors’ decision to retire the Holden brand has shocked politicians, industry pundits and punters.

The 160-year-old brand, which started as a saddlery in Adelaide, grew to sell more than 7 million cars between 1948 and today.

Many details about the future of Holden are unknown, but here are a few answers to your likely questions.

What did Holden announce today?

General Motors, the American parent company of Holden, has announced the brand will be retired. It means Holden and its branded cars will be no more.

General Motors made the decision to axe the brand due to a lack of return on its investment.

The company will shift away from right-hand-drive cars and said Holden did not stack up in its changed investment priorities.

“It’s tough to support a brand and a business that operates in just two markets (Australia and New Zealand),” General Motors International Operations Senior VP Julian Blissett said.

What happens if I own a Holden?

In the immediate future nothing will change. General Motors has assured customers it will do the right thing by customers.

General Motors will honour all warranties and servicing offers and provide servicing and spare parts for at least 10 years through national aftersales networks.

Holden’s ZB Commodore.

Can I still buy a Holden?

Yes.

“The doors won’t close tomorrow,” Holden’s interim managing director Kristian Aquilina said.

Cars will remain for people to purchase at the dealerships and General Motors will honour warranty and service agreements.

Will my local Holden dealer remain?

No Holden cars will be sold by the end of 2021 so Holden dealers will be offered a compensation and transition package.

What that looks like and how many dealers remain is yet to be known.

Some dealers may stay on and sell specialised General Motors vehicles, like the Corvette.

Holden has had a long affiliation with Supercars. Here Walkinshaw Racing races a special Peter Brock livery at Bathurst in 2017. Picture: Daniel Kalisz

I thought Holden closed last year. Didn’t it?

No. In December, after posing the lowest sales in its history, Holden announced it would stop making the Commodore.

Considered the heartbeat of the company, the four-door Commodore was Australia’s top selling car for 15 years until 2010.

The Holden badge was planned to remain on cars including the Colorado, Trax, Astra and Equinox until today, when the company announced the brand would be axed.

What happens to the V8 Supercars and Holden’s other sponsorships?

Holden’s Commodores will be on the grid when the Supercars championship starts in Adelaide this weekend, but there are big questions about next year’s season.

Holden has a deal to race in the Supercars championship until the end of 2021 with the Red Bull Holden Racing Team.

Holden management said today it was “aware of our commitment and we will work through with Red Bull Holden Racing Team the implications of this decision”.

Supercars management says it is working through new racing rules, which are designed to lure new manufacturers into the sport by 2022.

Holden will also discuss its commitment with Rugby League around the sponsorship of State of Origin.

The FJ Holden motor car.

Where did it go wrong for the once loved Aussie brand?

At the end of the Second World War the first Holden, a 48-215 ‘FX’, rolled off the production line.

By 1958 one in two cars on the road would be a Holden and, in 1964, 23,914 workers were employed manufacturing Holdens across Australia.

In the decades to come the Commodore dominated the car landscape until, in 2010, the large car market suffered. Holden’s sales dwindled until 2017 when the last Aussie-made car rolled off the production line.

Holden announced the Commodore was finished in December and, after posting the lowest annual sales since 1954, announced today the whole brand would be retired.

Australia will make do with football, meat pies and kangaroos.