General Motors axes Holden brand in Australia

General Motors axes Holden brand in Australia

Autocar

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Holden HSV GTS made its way to the UK as the Vauxhall VXR8 GTS

Historic marque retired after more than a century of vehicle production, with 600 job losses expected

The Holden brand will be axed by parent company General Motors by the end of 2021, ending the storied Australian brand’s 164-year history.

The company, founded in Melbourne in 1856, has been owned by GM since 1931. It dominated the Australian and New Zealand car markets for decades, but it's market share slipped dramaticlly in recent years, and it began to post heavy losses. In 2017, GM shut down the firm’s Australian manufacturing operations, leaving Holden selling a mix of imported and rebadged Opel and GM machines.

Julian Blissett, GM International Operations’s senior vice-president, said that Holden would be “retired” because GM felt the investment required to make it competitive in the Australian and New Zealand market outweighed the likely return.

“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.

“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. This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team.”

Blissett said GM’s would focus its future growth strategy in Australia and New Zealand on speciality vehicles, working with a number of partners.

GM Holden’s managing director, Kristian Aquilina, pledged to give the brand a ‘dignified and respectful wind-down’ before operations cease in 2021. He added: ““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." 

*A brief history of Holden*

James Alexander Holden, who emigrated to Australia from Walsall in 1852, founded his eponymous company as a saddlery in 1856. His grandson, Edward Holden, joined the firm in 1905 and due to his interest in cars it expanded into automobile repair work in 1908. That progressed to more extensive coachbuild work, and after the war Holden expanded to produce car bodies for the Australian market for both Ford and GM.

In 1931, GM bought Holden and merged the firm with its Australian arm. That quickly led to Holden opening a second factory in Port Melbourne. After the Second World War the Australian government pushed an initiative to develop an Australian designed and built car, with the resulting vehicle – simply called the Holden – launched in 1948.

Holden soon dominated the Australian market – accounting for around half of all sales in the country in the late 1950s – helped by a range that included the V8-powered Monaro, a range of Utes and the Commodore, its most popular model that launched in 1978.

But Holden's market lead in Australia slipped as Japanese and Korean rivals began to enter the market. In 2013 GM announced Holden would cease production in Australia in 2017, due to the high costs of manufacturing in the country. 

In 2019 Holden sold 60,751 cars in Australia, a fall of 32% year-on-year that put it in sixth plance on the sales charts. Market leader Toyota sold 217,061 models.

*Read more*

*Vauxhall VXR8 GTS review*

*2017: The end of car production in Australia - what went wrong*

*Used car buying guide: Vauxhall Monaro*

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