Holden Confirms Manufacturing Closure
In December of 2013 Holden finally confirmed what many had feared; that it was ceasing the manufacture of cars in AustraliaHolden Confirms Australian Closure (Photo credit: Wikipedia)
General Motors chairman and managing director Dan Akerson stated:
“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,” Akerson said.
What does this mean for the local manufacturing industry?
It is expected that the withdrawal of Holden from the local manufacturing scene will result in loss of 2900 jobs at Holden’s South Australian and Victorian manufacturing facilities over the next four years.
It is also expected to lead to the death of the local car making industry, with Toyota Australia, hundreds of parts suppliers and tens of thousands of jobs likely to follow.
In addition to the closure of manufacturing facilities the company will also “significantly reduce” its engineering operations in Australia by the end of 2017, but will continue to operate a global design studio for GM.
Besides the impact on jobs and the loss of local manufacturing expertise, the loss of Holden will have a big impact on national pride with the loss of an iconic local car brand.
What does the future hold?
It will be interesting to see what the flow on effect is on the value of Holden vehicles in Australia, both new and second hand.
Holden vehicles will of course continue to be sold, they will just be manufactured elsewhere.
Will “aussie made” Holden’s retain stronger values as buyers seek to hold onto the last of the Aussie manufactured cars?
What is your opinion?
You can read more about this story at http://www.caradvice.com.au/263976/holden-confirms-australian-manufacturing-closure-in-2017/