Holden to Cease Operations in 2017

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Holden to Cease Operations in 2017
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General Motors’ Holden unit has confirmed that it will cease its Australian manufacturing operations in 2017.

Nearly 3,000 workers will be impacted by the announcement since Holden has 1,600 employees in its Elizabeth vehicle manufacturing plant and 1,300 at Holden’s Victorian workforce. The announcement comes 24 hours after Holden chief executive Mike Devereux explained to the Australian government how annual subsidies for the automotive industry benefit economic activity. Prime Minister Tony Abbott’s government plans to cut $500million Australian dollars of subsidies from the car industry by 2015.

SEE ALSO: US Government Sells Remaining Shares in GM

The announcement comes straight from General Motors with CEO Dan Akerson saying that the decision “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.”

Holden promised that it will continue to have a significant presence in Australia beyond 2017, with a national sales company, a national parts distribution center and a global design studio.

GALLERY: 2013 Holden Commodore Ute

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[Source: News.com.au]

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  • Auto Motive

    I can understand why Holden is folding. Every car in their garage is outdated in styling and function. Failures by GM to bring a fresh design for the Holden group proved why the GTO failed. The SS Holden will be another nail in the coffin with the same stale styling cues. GM needs to hire a former BMW AUDI or Mercedes designer. Kia did it with a Audi guy and the first design 2011 Kia Optima is a huge success. Another note is most of the cars sold by GM are by diehard GM people. But they are also not stupid as seen by the lack of support on the Malibu. The refresh did nothing more to get those buyers in the showroom. Bland as can be including the well received Cruze. Sold like hell the first three years and now stagnant. GM is making all of the cash from SUV AND TRUCKS which put them in bankruptcy when gas hit $4….you need to learn from history.