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GM to Stop Making Cars in Australia

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Old 12-11-13, 06:50 AM
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Joeb427
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Default GM to Stop Making Cars in Australia

GM to Stop Making Cars in Australia by 2017

by The Associated Press Dec 11th 2013 6:06AM


CANBERRA, Australia -- General Motors Co. (GM) said Wednesday it will stop making cars and engines in Australia by the end of 2017, with nearly 2,900 jobs to be lost, because of high production costs and competition.

The decision could spell the end of car manufacturing in Australia as the industry will be too small for supporting businesses such as parts makers to remain economic. Toyota Motor Corp. (TM) announced it is reassessing its future in Australia. A union said 50,000 jobs in the auto industry are in jeopardy.

GM's Australian subsidiary Holden once dominated Australian auto sales, but lost market share to imported cars. Ford Motor Co. (F), once Holden's major rival in Australia, announced in May that it was ending production in the country in 2016. Toyota is the only other auto manufacturer in Australia.

Australia had four car manufacturers before Mitsubishi Motors Corp. shut its doors in 2008.

GM's announcement has been anticipated for months. The Australian government has been under mounting pressure to offer increased subsidies to the Detroit-based company to keep it manufacturing in Australia for the sake of the auto parts industry.

The decision reflected the "perfect storm of negative influences" that Australia's auto industry faces, GM's chief executive Dan Akerson said in a statement. Describing Australia as "arguably the most competitive and fragmented auto market in the world," he also blamed the sustained strength of the Australian dollar, high costs of production, and a small population.

Holden, which has manufactured cars in Australia for 65 years, would become a sales company, he said.

The announcement was made the same day GM revealed that Akerson will be replaced by Mary Barra on Jan. 15.

GM's Australia chairman Mike Devereux said GM cars rebadged as Holdens would continue to be sold and serviced in Australia after 2017.

GM is currently selling the Australia-built Chevrolet SS in the United States.


The 6.2-liter V-8 muscle car is called the Holden VF Commodore in Australia.

"Building cars in this country is just not sustainable," Devereux told reporters.

Industry Minister Ian Macfarlane said he was "floored" when Devereux phoned and broke the news.

Macfarlane said he was disappointed that GM had made its decision before an inquiry had completed an analysis of government support of the auto industry.

Holden has received 1.8 billion Australian dollars ($1.6 billion) in federal government assistance in the past 11 years.

"The task for the industry has got measurably more difficult as a result of Holden's decision, but it is not impossible to maintain a component and car industry in Australia," Macfarlane told reporters.

Toyota said GM's decision put its own ability to make Australian cars under "unprecedented pressure."

"We will now work with our suppliers, key stakeholders and the government to determine our next steps and whether we can continue operating as the sole vehicle manufacturer in Australia," Toyota said in a statement.

The Australian Manufacturing Workers' Union, which represents most of the auto industry's workforce, predicted that Toyota would also shut its Australian plant.

"Toyota have told me that they won't be able to survive in Australia because of the lack of volume in the component industry," AMWU vehicle division secretary Dave Smith told reporters.

"This will spell the end of 50,000 automotive jobs," said Smith, blaming a lack of federal government support for GM's decision.

Acting Prime Minister Warren Truss said the number of cars manufactured in Australia had declined by one third in only six years. Automakers in Australia produced about 178,000 cars last year, according to the International Organization of Motor Vehicle Manufacturers.

Truss said there more than 50 car models available to a population of only 23 million people.

"While Australians say they want locally manufactured cars ... the reality is they don't buy them," he said.
http://www.dailyfinance.com/2013/12/...#!slide=977112
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Old 12-11-13, 10:24 AM
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jwong77
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Thats too bad, really liked GM's offerings from Australia. It said they would stop making cars there, but will they stop designing them there too?
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Old 12-11-13, 10:43 AM
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Perphaps merge the threads, but reported last night

https://www.clublexus.com/forums/car...by-2016-a.html
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Old 12-11-13, 10:50 AM
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Perhaps GM's new female CEO, Mary Barra, will overrule this decision (let's hope). She is not the typical beancounter than ran GM for decades. She is an ex-auto engineer and seems more tuned to what is needed to build nice products, regardless of country of origin and/or cost of production. And Australian Holdens are some pretty nice platforms.
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Old 12-13-13, 12:42 AM
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Default Holden cars and dealerships could be rebadged as Chevrolet

Holden cars and dealerships could be rebadged as Chevrolet


HOLDEN cars and dealerships could be rebadged as Chevrolet once General Motors shuts its Australian manufacturing operations in 2017.

Holden has secretly been fighting to protect the Australian icon from extinction for the past decade, say company insiders.

But the switch to selling only imported cars - all of which are already sold as Chevrolets overseas - means the iconic Holden badge faces its biggest threat to date.

Holden boss Mike Devereux told News Corp Australia: "Holden is here to stay. Holden has been a part of Australia's past ... and it will part of its future for decades to come."

"Holden is one of the most valuable brands in Australia. We are committed to the brand for the long term. The brand is going to be a part of the fabric of this country for a very long time."

However, General Motors headquarters in Detroit wanted to kill the Holden nameplate during the Global Financial Crisis, along with the Hummer and Pontiac brands, but the then boss of Holden Mark Reuss fought against it.


"There will now be the biggest fight ever to save the Holden brand from being shelved," a Holden insider told News Corp Australia.

"Every time there is a new boss of Holden or a new head of General Motors, the question is asked, 'Why do we still have the Holden brand in Australia?'.

"Now that (Holden) won't be making cars and there won't be anything unique about the vehicles, the debate is going to come up again and it will be hard to win. There will be massive implications for the brand."



Holden Barina RS ... sold as a Chevrolet Sonic RS in the USA

By remaining an orphan brand, Holden misses out on global Chevrolet marketing campaigns, such as the $600 million seven-year sponsorship deal with superstar soccer team Manchester United.

The closure of Holden's test track and the sacking of hundreds of engineers means that future imported Holdens will not be uniquely tuned for Australian driving conditions.

One insider said the switch to Chevrolet could happen if General Motors believes the Holden brand image has been damaged by the shutdown of its factories.

"There is no emotion in this," he said. "It will all come down to money. If General Motors thinks sales will go down because the Holden brand is on the nose, then they will switch it to Chevrolet."

News Corp Australia understands it would cost between $500,000 and $1 million to rebrand each of its 233 dealerships nationwide, and that General Motors would foot half the bill for each showroom, forcing Holden dealers to pick up the rest of the tab or lose the franchise.

One insider revealed that Holden has been forced to conduct exhaustive research with Australian car buyers to prove the case to Detroit that the Holden brand is worth saving.

"The amount of money we've spent trying to defend the Holden brand to Detroit is ridiculous," he said.

"But when executives from North America come out to Australia, they take photos of Chevrolet badges that people have fitted to their Holden utes, and use that against us."

The last time Holden won the argument with Detroit to save the proud Lion badge, it got a stay of execution because Holden agreed to "soften" its image and focus on technology.

However, since then, Holden has announced multi-million-dollar sponsorship deals in the AFL and NRL football codes.

"Holden made a promise to General Motors that it would try to modernise the brand because it has a bogan image," the source said.

"That's why the (Chevrolet) Volt is being sold as a Holden, even though Holden is losing $1 million a year on it," he said.

With a price tag of $60,000 for an electric car the same size as a $20,000 Toyota Corolla, Holden has sold fewer than 200 Volts since it went on sale in Australia last year.

Holden boss Mike Devereux insists the cars will continue to be sold as Holdens once the company becomes solely an importer of vehicles.

But Mr Devereux will not be responsible for that decision by 2017; he starts his new international role for General Motors next February.

"The Holden brand is here to stay. I can rule out today any change to the Holden brand," he said in a statement yesterday.

"Holden is one of the most valuable brands in Australia. Holden is synonymous with cars in Australia."

"Holden is here to stay. Holden has been a part of Australia's past ... and it will part of its future for decades to come."

"We are committed to the brand for the long term. The brand is going to be a part of the fabric of this country for a very long time."


The original Holden "lion and stone wheel" logo was created by sculptor Rayner Hoff in 1928, before GM brought the saddlery turned body builder in 1948.

The logo was a tribute to the prehistoric fable that lions rolling stones led to the invention of the wheel.

The Holden lion badge has changed only three times since 1928: in 1948 at the launch of the first General Motors Holden car, in 1972 to coincide with the launch of the HQ Kingswood, (which went on to become the biggest selling Holden of all time), and in 1994 as Holden ramped up its marketing push for the Commodore to reclaim top-seller status from the Ford Falcon.
http://www.news.com.au/finance/busin...-1226781980761

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Old 01-10-14, 05:29 PM
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Default GM may be asked to give up Holden name in Australia

GM may be asked to give up Holden name in Australia



Never a people to go down without a fight, Australia is still lobbying to save local Holden production following the announcement from General Motors that its South Australia-based subsidiary would be closing up shop. Now, the state's premier (that's like a governor) is attempting to find another automaker to buy Holden from GM. Premier Jay Weatherill has suggested that Holden be sold to another manufacturer, if it will mean that production will continue at the Elizabeth and Fisherman Bend factories.

"It may be that a particular car manufacturer might want to set up here but use the equity that's in the Holden brand to continue making cars," Weatherill told reporters. "That's obviously something that's the property of General Motors at the moment and, presumably, they have an interest in keeping it because it has value for them. But that is something that we would want to advance in any discussions with Holden."

Which manufacturer would be willing to plop down money on the Holden name and factories, particularly after both GM and Ford have ended local production, remains unclear. Toyota is currently the only other brand to maintain production in Australia.

Plans for Holden's future have included turning it into a branch of Chevrolet, as well as importing a front-wheel-drive version of the brand's flagship, the Commodore, from China.
http://www.autoblog.com/2014/01/10/g...-in-australia/
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Old 01-10-14, 05:51 PM
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too bad mate .....
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Old 01-10-14, 09:55 PM
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Hahaa importing the KOMMI from China!

As soon as Holden shuts down, their sales numbers will plunge big time.
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Old 05-02-14, 10:16 AM
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Default Holden getting Cascada, Astra and Insignia from Opel


Holden Cascada Convertible to Debut in Australia and New Zealand in 2015; Joined by Astra and Insignia
2014-05-01

Holden's ongoing commitment to sourcing the best vehicles from around the world took an important step forward today with the announcement that three European-sourced vehicles will join Holden's line-up in the first half of 2015.

The sleek Cascada convertible will come to Australia for the first time, joined by the Astra GTC and VXR three-door hatches and the sophisticated Insignia VXR performance sedan.

General Motors Executive Vice President and President, GM International Operations (GMIO) Stefan Jacoby joined Holden Chairman and Managing Director Gerry Dorizas at a press conference at Holden HQ at Fishermans Bend today to make the announcement.

Mr Jacoby said the announcement of these European-sourced models joining Holden's portfolio demonstrated that the company would continue to bring the best possible products from GM's product portfolio to Australian customers to support a strong future for Holden.

"Holden is one of the strongest brands in Australia and the introduction of the Astra, Cascada and Insignia to the portfolio in 2015 will be a great addition," Mr Jacoby said.

"We are determined to offer Australian and New Zealand customers the best possible products that we can source from our global operations, as we build a strong future for Holden.

"GM is dedicated to building strong brands that connect with our customers. Holden and GM are undergoing a transformation that is committed to driving our markets toward success.

"We are focussed on the long-term fundamentals, such as ensuring Holden retains its proud Australian identity and provides customers with the best possible cars.

"It's critical we focus on consumer and market-driven product strategies that enable global scale while engaging customers at a local-market level. The Astra, Cascada and Insignia are proof positive of our strategy."

Mr Dorizas said the commitment to performance and quality evident in the three Europe-sourced models aligned with Holden's heritage and brand.

"Astra, Cascada and Insigina will be niche vehicles in terms of volume for our company, and their performance credentials and premium execution are a perfect match for Holden and will provide yet more fantastic choice for our customers," Mr Dorizas said.

"We are building a strong future for Holden by focusing on our customers, our dealers, our employees and our products."

Specifications:

Holden Astra GTC
3-door hatch
1.6L turbo petrol engine
6-speed manual and automatic transmission
Front-wheel drive
On-sale first half 2015

Holden Astra VXR
3-door hatch
2.0L turbo petrol engine
6-speed manual transmission
Front-wheel drive
On-sale first half 2015

Holden Cascada
2-door convertible
1.6L turbo petrol engine
6-speed manual and automatic transmission
Front-wheel drive
On-sale first half 2015

Holden Insignia VXR
4-door sedan
2.8L turbo V6 engine
6-speed automatic transmission
All-wheel drive
On-sale first half 2015
http://www.autoblog.com/2014/05/01/h...stra-insignia/
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Old 05-14-14, 01:45 PM
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Default Commodore EV was almost ready before Holden collapsed


When you look at a Holden Commodore, you're not likely to see a "green" car staring back at you. (That is, assuming you're in Australia where the Commodore is sold. Or in the UK where you can get a Vauxhall VXR8. Or here in the US where it's rebadged as a Chevy SS or before that as a Pontiac G8 or GTO.) It is, in many cases after all, a big, rear-drive V8 muscle sedan. Not, in other words, known for its frugal sipping of fuel. But that didn't have to be the case.

According to our VB-guzzling compatriots from Down Under, a joint venture was on the verge of bringing an electric version of the Commodore to market. That joint venture was called EV Engineering, and it was the same outfit that built the (unofficial) record-setting Commodore that drove on electric power alone for a full 24 hours, covering 1,172 miles in the process. With development all but complete, EV Engineering was all ready to bring its electric Commodore to market, until all its constituents started dropping out.

First Futuris dropped out, then Better Place went under, GE Finance pulled its backing and GM turned Holden into an importer. After that Bosch and Air International dropped out, leaving just one constituent to the joint venture. The sole remaining partner, Axiflux is on the lookout for potential partners for the electric vehicle technology on which it collaborated, but given the state of the Australian automobile industry these days, it could be facing an uphill battle – up Ayers Rock, no less – to capitalize on the technology it's got.
http://www.autoblog.com/2014/05/14/h...hat-never-was/
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Old 05-14-14, 01:58 PM
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Will Aussie taxpayers bail out Holden? Like we did for GM?
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Old 05-14-14, 06:31 PM
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no much to bail out since they're just going to be an importer of opels it sounds like, lol
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Old 05-15-14, 08:12 AM
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Originally Posted by bitkahuna
no much to bail out since they're just going to be an importer of opels it sounds like, lol
Well, Opel, like Hyundai, once built junk, but today, IMO, really makes some nice stuff. From what I have seen of their GM-rebadged products, they use solid materials, fairly stout construction, have good ride/handling compromises (except for the Regal GS, which is quite stiff by my standards), and have a nice Germanic feel. Their reliability, once worse than average, has also improved quite a bit.
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Old 05-15-14, 08:15 AM
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Originally Posted by islandbeef
Will Aussie taxpayers bail out Holden? Like we did for GM?
While, of course, that is up to the Australian people and their government, I personally can think of lots worse ways to spend Australian cash.
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Old 05-15-14, 09:12 AM
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Originally Posted by Joeb427
GM to Stop Making Cars in Australia by 2017

GM is currently selling the Australia-built Chevrolet SS in the United States.

The 6.2-liter V-8 muscle car is called the Holden VF Commodore in Australia.

http://www.dailyfinance.com/2013/12/...#!slide=977112
Just a correction as we don't get the 6.2L V8 for our SS VF.

But rumour has it that Holden will introduce the 6.2L with the mid life cycle refresh VF
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