GM Holden has confirmed that it will discontinue vehicle and engine manufacturing operations in Australia by the end of 2017.
At a cost of almost 3000 jobs comprising of 1600 from the car plant in Elizabeth, South Australia and slightly less from Holden’s Victorian operations, Holden will effectively become a sales network for GM products and also assume a parts distribution role and become a global design studio.
GM Holden chairman and managing director Mike Devereux said the company remained committed to the car industry in Australasia but admitted the manufacturer’s business model has changed.
It is a decision which has also placed immense pressure on Toyota’s ability to remain in manufacturing in Australia given the strain on the supplier network.
“We recognise the need for change and understand the government’s point of view,” Devereux said.
“Moving forward, our business model will change significantly however, GM Holden will remain an integral part of its communities and an important employer both directly and through our dealers.”
Speaking at the height of uncertainty over Holden’s future at the weekend, Holden Special Vehicles and Holden Racing Team owner Ryan Walkinshaw told Speedcafe.com that he was not concerned about a potential withdrawal.
“Its an awkward situation because we don’t know exactly what is panning out,” Walkinshaw said.
“But we are still pretty confident we will still be able to do some things with Holden cars. Our fate isn’t really in our own hands necessarily.
“At the moment the company is strong (HSV).
“We’ve made the best car that has ever been made in this country (HSV GTS which produces 430kW).
“It’s probably one of the best cars ever made anywhere in the world.
“As long as Holden is making cars in Australia we will be making the best cars we possibly can based on those models.
“It doesn’t have to be Commodore-based. We will work with whatever we will have available to us. We are pretty adaptable with the business and are pretty entrepreneurial.”
Walkinshaw said that racing is part of his fabric and he had been brought up in a motor racing environment.
He said he cannot see that Holden’s decision will change things for his Holden Racing Team squad which will field a four-car Commodore outfit under the Walkinshaw Racing banner next year.
