Holden to Cease in Australia and New Zealand
GM International Operations Senior Vice President Julian Blissett said GM had taken the difficult decision after implementing and considering numerous options to maintain and turn around Holden operations.
"Through its proud 160-year history, Holden has not only made cars, it has been a powerful driver of the industrialization and advancement of Australia and New Zealand," said 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, together with the local team."
GM undertook a detailed analysis of the investment required for Holden to be competitive beyond the current generation of products. Factors impacting the business case for further investment included the highly fragmented right-hand-drive markets, the economics to support growing the brand, and delivering an appropriate return on investment.
"After comprehensive assessment, we regret that we could not prioritize 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."
GM intends to focus its growth strategy in Australia and New Zealand on the specialty vehicles business and plans to immediately work with its partner on developing these plans.
GM Holden Interim Chairman and Managing Director Kristian Aquilina said that given the significance of Holden through its history, it was critical the company worked with all stakeholders to deliver a dignified and respectful wind-down.
"Holden will always have a special place in the development of our countries. As Australia and New Zealand grew, Holden was a part of the engine room fuelling that development," said Aquilina.
"Today's announcement will be felt deeply by the many people who love Holdens, drive Holdens and feel connected to our company which has been with us for 160 years and is almost ubiquitous in our lives.
"Unfortunately, all the hard work and talent of the Holden family, the support of our parent company GM and the passion of our loyal supporters have not been enough to overcome our challenges.
"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 customers can be assured that the company will honour all warranties and servicing offers made at time of sale. Holden will provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand. As required, Holden and its aftersales network will also continue to handle any recalls or safety-related issues if they arise, working with the appropriate governmental agencies.
Impacted Holden employees will be provided separation packages and employment transition support.
Holden will work with its dealer network on appropriate transition arrangements, including offering dealers the opportunity to continue as authorized service outlets to support Holden customers.
Holden Customer Care is available to answer customer inquiries and all warranties and service agreements. Holden customers in Australia can call 1800 46 465 336 or visit www.holden.com.au; Holden customers in New Zealand can call 0800 465 336 or visit www.holden.co.nz.
Media are invited to a press conference at 1.45pm today, Monday, February 17, 2020, in Room 204 at the Melbourne Convention Centre.
The best way to access the room is via the main Melbourne Convention Centre entrance which is located at 1 Convention Centre Place, South Wharf, Melbourne.
Attendees will then need to turn left as they enter and take the lift or Stair 1 to Level 2. Room 204 is at the very top of the stairs/ lift.
Media who are not able to attend can dial-in via:
Participant International Dial-In Number
Australia: 1800 005 989
New Zealand: 0800 445 971
Australia, Sydney: 02 8223 9773
Conference ID: 4525638
Please dial-in from 1.30pm for a prompt 1.45pm start.
About General Motors Corporation
General Motors Corporation (NYSE:GM). The Group's principal activities are divided into two business segments: Automotive, Communications Services and other operations and Financing and Insurance operations. Automotive, communications services and other segment designs, manufactures and markets cars, trucks, locomotives and heavy-duty transmissions and related parts and accessories. Financing and Insurance operations are conducted through General Motors Acceptance Corporation and other financing entities which provides a range of financial services. The services includes consumer vehicle financing, full-service leasing and fleet leasing, dealer financing, car and truck extended service contracts, residential and commercial mortgage services, commercial, vehicle, and homeowners' insurance and asset-based lending.
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