Holden to shut down permanently in Australia and New Zealand

KUALA LUMPUR: After several survival efforts, GM has finally announced the permanent shut down of Holden brand. Its sales, design and engineering efforts will come to an end gradually in Australia and New Zealand by 2021. Its manufacturing operations were abandoned in 2017. Julien Blissett, senior vice president of GM International Operations said that it was a difficult decision but nothing was fixing things. The company made several changes to maintain and turn around the brand but failed.

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.” Blissett added by saying “After a 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. This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team.”

Holden mentioned that it will take care of the servicing and warranties of already sold cars for at least ten years. Also, it will handle safety-related issues and recalls, if occurred. As far as employees are concerned, the company said that impacted employees will be given transition support and separation packages. The current dealers will be also be provided with appropriate transition arrangements along with an opportunity to continue as the Holden dealer for providing services to the company’s customers.

The interim managing director of Holden, Kristian Aquilina said, “We understand the impact of this decision on our people, our customers, our dealers and our partners – and will work closely with all stakeholders to deliver a dignified and respectful transition.”

The decision of completely shutting down the brand was only made in the past 48 hours in Detroit, with the company’s sole intention to revive the brand, as per a senior GM official, posted on an Australian auto portal, CarAdvice. “Our intention was to turn around the brand…there is zero blame to the local team. This decision [about Holden> is all about investment priorities,” according to a source.

GM will, however, continue to offer speciality vehicles down under, with Holden Special Vehicles (HSV) sub-brand transforming into General Motors Specialty Vehicles (GMSV), according to CarAdvice.

GM is facing continuous loses in markets like Europe, where it sold Vauxhall and Opel brands to the largest automotive group, PSA Group in 2017. From several right-hand drive markets, the company has already pulled out, including India, Japan, South Africa and the United Kingdom. The brand has also exited markets like Indonesia and Vietnam.

GM also mentioned that it would be unprofitable to manufacture RHD models for three comparatively small markets, like Thailand. GM will be selling its operations in Land of Smiles to Great Wall Motors. This could also be a probable end to the next-gen Colorado pick-up.

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