It fought valiantly for its survival, but in the end it was not enough. Holden has announced that it will cease as a brand altogether, winding down sales, design and engineering efforts in Australia and New Zealand by 2021. The news comes just three years after it shut down its manufacturing operations in 2017.
Parent company General Motors made the “difficult decision” after implementing and considering numerous options to maintain and turn around the brand, according to GM International Operations senior vice president Julien Blissett. “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.”
In a detailed analysis of the investment required to make Holden competitive beyond the current generation of products, several factors counted against it. This included the fragmented right-hand drive markets, the economics to support the growth of the brand, and the ability to deliver an appropriate return on investment.
“After 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,” said Blissett. “This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team.”
Holden’s interim chairman and managing director Kristian Aquilina said that it was important to work with all stakeholders to deliver a “dignified and respectful” wind-down, given its 160-year history. “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.”
Holden said that it will honour all warranties and servicing offers made at the time of the sale, and that it will provide servicing and space parts for at least 10 years, through its aftersales networks. It will also handle any recalls and safety-related issues if they arise, as required, working with governmental agencies.
Impacted employees will also be provided separation packages and employment transition support, while dealers will be offered appropriate transition arrangements – including the opportunity to continue as authorised service outlets to support Holden customers.
Australian motoring portal CarAdvice detailed the shocking move – according to a high-ranking GM official, the “agonising decision” was only made in Detroit in the past 48 hours, adding that the company had every intention of reviving the brand following the end of local manufacturing.
The recent introduction of the Acadia and Equinox SUVs, based on GMC and Chevrolet’s United States models respectively, as well as the planned launch of the Chevrolet Corvette, is apparently evidence of this. “Our intention was to turn around the brand… there is zero blame to the local team,” the source said. “This decision [about Holden] is all about investment priorities.”
General Motors has been retreating from unprofitable markets for some time – including in Europe, where the company sold its Opel and Vauxhall brands to the PSA Group in 2017. The company has also been pulling Chevy from right-hand drive markets, including the United Kingdom, Japan, India and South Africa. Within the Southeast Asian region, the brand has also recently exited the Vietnamese and Indonesian markets.
As such, the company has apparently decided that it would be unprofitable to develop new RHD models for three comparatively small markets, including Thailand. In fact, GM also announced today that will sell its operations in the Land of Smiles to Great Wall Motors, thereby scuppering any plans for a next-generation Colorado pick-up – Holden’s bestselling model.
General Motors still plans to continue offering specialty vehicles in Australia and New Zealand, with CarAdvice reporting that the Holden Special Vehicles (HSV) sub-brand could be turned into the imaginatively-named General Motors Specialty Vehicles (GMSV). This company already imports the Chevrolet Camaro and Silverado, converted to right-hand drive.
The publication said that the brand could add the Chevrolet Tahoe and Suburban SUVs, as well as Cadillac SUVs that share their underpinnings. The forthcoming electric Hummer pick-up could also be converted to RHD and sold there further down the road, while the introduction of the Corvette should continue unaffected. Unlike those other models, the sports car will come in RHD form directly from the factory, as the switch to a mid-engined layout will ease the conversion.
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Meanwhile Proton sales meletop @ RHD markets.
Which country?
Singapore? Nope.
Japan? Nope.
Thailand? Nope.
Indonesia? Nope.
UK? Nope.
India?? Never.
Definitely. Brunai.
Not yet. Still too early. Don’t have the right cars to hit the sweet spot for a full on attack on export markets yet
Sell the brand to the Chinese. Maybe Geely and then rebadge Proton’s as Holden’s. Proton would then have stronger chance of selling vehicles in Australia then if they were badged as Proton’s.
Proton has a surprisingly good name in Australia due to it’s pickup truck based on the Wira they once sold there.
The jumback (spelling?) did sell well, but I don’t think the aussies had a good view of it. I rmb reading all the negative comments on some aussie forum about its safety. that being said, i hope proton can sell well down there.
Not true. Arena failed badly all over the world
Aussies didn’t buy Holden because of the branding but for their performance cars. A Proton’s Holden will need to have performance cars to attract Aussies but these kind of cars aren’t cheap to develop nor market feasible for profits, hence why Holden died despite Aussies had supported them. It is the market which screwed up.
You’re right. They’ll need more powerful engines to appeal to the Aussies when the whole world is downsizing and compensating the big cc with electrification, hybrids and at the most basic, turbocharging or supercharging for better efficiency. Guess, whoever buys the Holden brand will need to have a combination of offerings to suit the modern taste of what’s to come as well as to retain some old school style in limited numbers for the traditionalists and hopefully, later on, wean them off old tech entirely
Good idea. China and Geely can turn it around. Just like they did with Proton
So Murica has sold to China? Wahahahaha!!!!!
as large as Australia and New Zealand market also cant survive this OEM model (without compromising the citizen benefit for the cost). We know how Malaysia rakyat being conned for years.
no idea what the heck you’re saying.. but its very clear why holden failed.. you just need to go do some research and read.
What large market? Australia has 26 million people only, 7 million less than Malaysia.
However 26 million people in developed country is larger market than 33 million bangsat.
You do know that such a large country like australia has population about the same as small malaysia right? Cars sell to people, not to the land.
Ford camp in Australia : hooray
inb4 Ford has left Aussie market way before this.
Make America great again by making others paupers.
1) GM is not good at making small cars .
2)GM alway says making small car does not create strong profit.
3)GM HQ CEO only cares about oneself KYC to look good at the expense of poor GM products
4)Someone says make America Great Again by selling junk GM cars . If GM cannot make a great small car or good SUV, how can America be great again?? Still puzzle by that Moron statement
5) America is not great ,, Only the USD which is the reserve currency of the world is great. What happened if USD is not circulated , transacted and peg against other currencies.??Yes,make America Great again by going BUST
6) GM cars got decent good styling but very poor 4 cylinders engine engineering , poor manufacturing workmanship , and parts used , poor car detailing and safety making that are causing GM cars endless reliability and durability ssues , . Hence GM cars are money pit useless products that is keeping many customers away.. not surprise why GM executives failed to understand why GM products cannot sell except collecting high salaries only .
Hence , customers will go for C’ontinental and Asian car brands that are better engineering , better detailing , better durability and reliability , better quality spare parts , better fuel consumption and justify pricing .
This GM is to make GM great but without good products portfolio to entice new customers just like make America great without understanding what America can sell to the world .
Period to GM ..
Geely can takeover.
simple. stop making rubbish cars. rebadge daewoos arent enough.