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Official: Holden Manufacturing to Stop in 2017

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It's official: Holden will no longer be manufacturing its own cars. GM announced late last night that Holden would discontinue vehicle and engine manufacturing, as well as reduce its engineering operations by 2017.
More on Motortrend.com:
Holden will now transition from a full-fledged automaker to a national sales company, similar to how Vauxhall functions in the United Kingdom. GM will continue to sell Holden-badged versions of GM products, like the Holden Cruze, or Holden Volt. Australian-developed models like the Holden Caprice, Holden Commodore, and Holden Ute, though, will be no more.
The decision to close Holden was based on economics, says GM chief Dan Akerson, who will step down in January, "The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”
More on Automobilemag.com:
According to GM, making things in Australia is 65 percent more expensive than compared to just a decade ago -- since 2001, the Australian dollar has risen from $0.50 to as high as $1.10 U.S. dollars. As of this morning, the Australian dollar is equal to about $0.91 USD. Though it's closing its Australian production facilities, GM says it'll still maintain a major presence in the market. Aside from the Holden sales company, GM will continue to maintain its parts distribution center, and global design studio. Holden's 2900 manufacturing positions will be affected by the closure.
More on Automotive.com:
GM is the latest automaker to end Australian production -- Ford announced it will end Australian production in 2016. Toyota remains the last automaker producing vehicles in Australia. Mitsubishi was the first to pull out, exiting in 2008.
It's too early to tell what this means for the Holden-sourced Chevrolet Caprice and Chevrolet SS in the U.S., but we doubt GM will give up the police market, and it isn't inconceivable for the SS to move to another rear-drive platform. According to Chevy, production of both the SS and Caprice will continue as planned in Australia. GM will likely announce their fate at a (much) later date. Source: GM
24 comments
TeamWidetrack
TeamWidetrack

All people in suits in the industry are the same. Because of it, they want the cars to be all the same. GM may not have a monopoly on horrible leadership and brand management but why make the people who stayed loyal to you pay for your mistakes?

Alex daOriginal
Alex daOriginal

why shift production? the Zeta is getting old... let Zeta die, the future is Alpha! 


the CTS is about the right size so why not use it's platform to create an SS replacement "Chevelle plz" a new Commadore and maybe a new Ute and Wagon! though I see Colorado/Ranger have done to the Ute what the S-10/Ranger did to the El Camino...

francyfimiani
francyfimiani

Hopefully they keep the Commodore/SS/Ute in production somewhere else, they look so awesome!!!

TJ World of Cars
TJ World of Cars

And this is why you don't trust GM to help you run your business, for they'll use you for profit, and then when you start losing money (through your fault or theirs), they'll drop you like a hot potato. Just ask Saab, Pontiac, Saturn, and others. If Holden had the capital, they should have found a way to split with GM, for there are still plenty of markets that want big RWD cars (the Middle East, China, etc.). And just like that, the GM graveyard of brands grows one name larger.

ALF- Gordon Shumway
ALF- Gordon Shumway

@TJ World of Cars How's that any different from other corporations?

giallofly
giallofly

A shame, but it's been coming for a long time.

Dwayne Washington
Dwayne Washington

Would be great to have the Ute here, was suppose to be a reality til the big market fall and we lost Pontiac.

renoboy74
renoboy74

who is to say that they couldn't shift production of the commodore, caprice and ute to north america, making them available for both left hand drive markets here and right hand drive markets such as australia , the UK and so on. ford screwed up by killing the falcon.. they should have modified the new mustang's platform which is already engineered for both markets and build the falcon/ute off that platform, again making it available to both markets.. making the falcon a specialty car like the SS.

-Dequindre-
-Dequindre- moderator

It's a sad day for Australia. They've lost manufacturing for two of their most historic automotive brands (Holden and Ford Australia). However, this could potentially be a gain for North America. Ford and GM still invest heavily in Mexico, Canada, and especially the U.S. 

pennrck22
pennrck22

While this is hardly new news..def a sad day indeed now that its official..


as stated in the article, Holden will continue production of the SS and CAPRICE police vehicle..i wonder about the cars NEXT GEN models???


GM was rumored to be shifting production of these RWD vehicles to the US..heres to hoping the newly introduced SS isn't a one hit wonder like the poor GTO or G8..id like to think with the AWESOME underpinnings of the new CTS, GM wont limit that chassis to just Caddy..GM has the best RWD cars to date with the ATS and CTS, lets keep the momentum going!!


RIP commodore, caprice and ute..man I wish the ute would have made it stateside!!

Classic Bob
Classic Bob

Sad day, no more Ute’s for the outback, no more SS for the USA..

laxedout30
laxedout30

So I will never see a new age El Camino..... sad day indeed

FordCosworth
FordCosworth

How about shutting down the ultimate money loser Opel.?


13 straight years of losses is quite pathetic and unacceptable.

92Vectra1.6i
92Vectra1.6i

@FordCosworth EVERY decent front drive GM car introduced in the past decade has Opel roots or is / was simply a rebadged Opel. The "new" GM wouldn't be viable without Opel design and engineering.

FordCosworth
FordCosworth

@92Vectra1.6i @FordCosworth I agree with your comment. But that does not justify holding onto the money loser. Opel has been a money-losing venture for more than the last decade — to the extent of $11 billion during the time period. Through countless cases of mismanagement, market share that has halved since 1999 and overall subpar governance, the unit has limped along — subsidized by its parent company. 



jamie hayungs
jamie hayungs

That's a shame....I feel for the Australian auto workers. But GM made a huge mistake in not bring the Holden line over here. Instead we get a warmed over GTO, and the sad SS, which I doubt will be sold more than 2 years. All we got was the mighty G8 GXP.......Such a waste of a great car manufacturer.

92Vectra1.6i
92Vectra1.6i

@jamie hayungs The SS and G8 GXP are the same car under the skin with the SS (other than the SS being automatic only and having  slightly revised suspension components) having a higher quality, better laid out interior combined with a less attractive exterior.

Oz65
Oz65

The closure in 2016 is the scheduled end of the current Commodore (SS) so it shouldn't affect supply to the US but will make the model an orphan with no obvious successor.


The closure will mean the end of Australian RWD cars.  Ford are keeping their R&D centre and proving ground at the You Yangs near Melbourne so it can develop models for Asian and South American markets such as Ranger.  Unfortunately Holden is not keeping its excellent engineering skills based in Melbourne and its engineering centre and Lang Lang proving ground will close forever.


It is a sad day down here but the volumes are too low to be competitive and the cost structures way too high.  The behaviour of the unions has made it worse.  The unions held out for ridiculous conditions and have ended up with their members out of a job.


Ford and Holden (and Toyota) didn't help themselves responding too slowly to the market changes in Australia.  SUVs are the fastest growing sector in Australia but there is only one SUV made here, the Territory.  Likewise. despite the growth of diesels in the Australian market, there is only one model sold with a diesel engine, the Territory, and that engine is imported.


renoboy74
renoboy74

@Oz65 sounds like they really screwed themselves over down there.. the UAW up here did a good job of keeping holden sourced products off american roads for a while, there was talk about the commodore coming stateside back in 1997 (we already had an Opel version sold here as the Cadillac Catera) to replace the then discontinued  RWD Chevy Impala SS but UAW  really screwed that up.. we got the monaro as the GTO  and that lasted 3 years, then we got the G-8 in '09 and before we could really get used to it, GM killed pontiac off... now the commodore is making its presence here as the SS and its a great looking car , if GM is smart they will shift zeta development here instead of killing it off and bring the brains behind its development stateside.. the sad thing with ford and holden doing this, is its gonna ruin the V-8 supercar series the same way nascar was ruined when they QUIT using real cars on the circuit in the late 70s...

mopar_srt
mopar_srt

Wow! So much for the SS creating buzz for Chevy. But for Australia, this is akin to Ford ceasing production here in the States. Sorry to see them go.

 

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