[FenwickHockey65]

GM to Transition to a National Sales Company in Australia and New Zealand
Company to cease manufacturing in Australia by 2017
General Motors

December 10, 2013

DETROIT – As part of its ongoing actions to decisively address the performance of its global operations, General Motors today announced it would transition to a national sales company in Australia and New Zealand. The company also said it would discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017.

“We are completely dedicated to strengthening our global operations while meeting the needs of our customers,” said GM Chairman and CEO Dan Akerson. “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.”

As a result of the company’s actions, approximately 2,900 positions will be impacted over the next four years. This will comprise 1,600 from the Elizabeth vehicle manufacturing plant and approximately 1,300 from Holden’s Victorian workforce.

Holden will continue to have a significant presence in Australia beyond 2017, comprising a national sales company, a national parts distribution centre and a global design studio.

GM Holden Chairman and Managing Director Mike Devereux said an important priority over the next four years would be to ensure the best possible transition for workers in South Australia and Victoria.

“This has been a difficult decision given Holden’s long and proud history of building vehicles in Australia,” said Devereux. “We are dedicated to working with our teams, unions and the local communities, along with the federal and state governments, to support our people.”

The sale and service of Holden vehicles will be unaffected by this announcement and will continue through the extensive network of Holden dealers across Australia and New Zealand. Warranty terms and spare parts availability will remain unchanged.

“GM remains committed to the automotive industry in Australia and New Zealand. We recognize the need for change and understand the government’s point of view. Moving forward, our business model will change significantly however, GM Holden will remain an integral part of its communities and an important employer both directly and through our dealers,” Devereux said.

Since 2001, the Australian dollar has risen from US$0.50 to as high as US$1.10 and from as low as 47 to as high as 79 on the Trade Weighted Index. The Australian automotive industry is heavily trade exposed. The appreciation of the currency alone means that at the Australian dollar’s peak, making things in Australia was 65 percent more expensive compared to just a decade earlier.

With the decision to discontinue vehicle and engine manufacturing in Australia by the end of 2017, GM expects to record pre-tax charges of $400 million to $600 million in the fourth quarter of 2013. The charges would consist of approximately $300 million to $500 million for non-cash asset impairment charges including property, plant and equipment and approximately $100 million for cash payment of exit-related costs including certain employee severance related costs. Additional charges are expected to be incurred through 2017 for incremental future cash payments of employee severance once negotiations of the amount are completed with the employees’ union. The asset impairment charges will be considered special for EBIT-adjusted reporting purposes.

[FenwickHockey65]

With Ford and GM both shutting down manufacturing, Toyota is certain to follow.

Sad day for Australia's auto industry.

[crysalis_01]

Guess I better get to work on importing the Ute I want while I can.

Sad days.

[05stram]

Question is the SS and other platforms are we going to get the Korean built? Or since some of it is coming here what if all the platforms will be here? Still confused on what all is coming home to be built from all the announcements being made these days.

[JAZ]

Another question. What will GM run in the Supercar Series against the RHD Mustang? Are they going to make a RHD Camaro?

[Denis]

wow....

[FenwickHockey65]

Originally Posted by 05stram

Question is the SS and other platforms are we going to get the Korean built? Or since some of it is coming here what if all the platforms will be here? Still confused on what all is coming home to be built from all the announcements being made these days.

Most, if not all future Holdens will be Korean-built and imported into Australia. GM will retain Holden design and engineering but there will be no manufacturing in Australia.

Originally Posted by JAZ

Another question. What will GM run in the Supercar Series against the RHD Mustang? Are they going to make a RHD Camaro?

It's quite possible the 6th gen will wear Holden badges at some point. But at the same time, development of the Commodore after VF is already underway. The big question will be if it retains its traditional RWD drivetrain.

[el ess A]

Everything will be a KIA before long...

[HeavyIOM]

Originally Posted by el ess A

Everything will be a KIA before long...

THIS!!!! pretty soon there wont be much worth buying. enjoy it while you can.

[LSXaddict]

I am just glad they're keeping the Holden design studios open. Yes many of them may end up being Korean built but I also could see a few of the platforms ending up on this side of the pacific.

[JAZ]

Originally Posted by FenwickHockey65

Most, if not all future Holdens will be Korean-built and imported into Australia. GM will retain Holden design and engineering but there will be no manufacturing in Australia.



It's quite possible the 6th gen will wear Holden badges at some point. But at the same time, development of the Commodore after VF is already underway. The big question will be if it retains its traditional RWD drivetrain.

Report from Autoblog:
"As for the Commodore – that one product line actually engineered and built by Holden in Australia – reports indicate that it (or at least its nameplate) could continue past 2017 as a shared program with Buick to be built in China. The new Commodore would likely have a front-drive layout with a four-cylinder engine, though Holden executives are reportedly pushing for a V6. Just what that means for the Chevy SS, Caprice PPV and the future of GM's rear-drive platform altogether remains to be seen, but we're starting to fear the worst."

Oh Oh! That's not good.

[Bhobbs]

Originally Posted by JAZ

Report from Autoblog:
"As for the Commodore – that one product line actually engineered and built by Holden in Australia – reports indicate that it (or at least its nameplate) could continue past 2017 as a shared program with Buick to be built in China. The new Commodore would likely have a front-drive layout with a four-cylinder engine, though Holden executives are reportedly pushing for a V6. Just what that means for the Chevy SS, Caprice PPV and the future of GM's rear-drive platform altogether remains to be seen, but we're starting to fear the worst."

Oh Oh! That's not good.

I'm sure the Aussies would just love a FWD, 4 banger Commodore.

[matt55]

[gen=5]

wtf is wrong with GM i think if every stops buying a GM for a yr maybe we can keep the type of cars that makes us happy and not the freaking over seas market I guess as long as the GM,ford brass get their 20 million $ bonus each