General Motors (GM) have announced retirement of the Holden brand after 160 years of service in Australia and New Zealand.
Founded in 1856, the beloved brand which is a subsidiary of United States based company GM, has experienced consistent waning sales which have culminated in the inability to return on investment, alongside noting the limits of only operating in two markets.
Holden are wrapping up processes, with the timeline of closure to conclude in ten years, during which they will still provide ongoing services and parts.
In a statement on Facebook, Holden have announced the following:
“With a heavy heart, Holden announced today that General Motors will be retiring the Holden brand in Australia and New Zealand. This announcement will be felt deeply by the entire Holden family, our customers and our fans. We will immediately begin working with our dealer partners across Australia and New Zealand to implement an orderly transition, including support for our existing customers. Holden will continue to support customers in the following ways:
- Honour all existing warranties and guarantees
- Honour all free scheduled servicing offers
- Ongoing call centre support
- Provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand
- Recalls or safety-related issues if they arise
GM has taken this difficult decision after an exhaustive analysis of the investment required for Holden to be competitive for the long term in Australia’s and New Zealand’s new car markets.
Regrettably, this assessment determined such an investment could not meet GM’s investment thresholds, including delivering an appropriate return. Factors weighing against further investment in Holden included: the highly fragmented right-hand-drive domestic markets; the economics to support growing the brand; and delivering an appropriate return on investment.
More broadly is the issue of scale. The global consolidation of the automotive industry has made it increasingly challenging to support a brand and a business that operates in only two markets, which represent less than one per cent of the global industry.
This decision has not been taken lightly, especially considering the iconic status of the Holden brand and the contribution it has made not only to GM, but to the development of the economies of Australia and New Zealand.
It impacts all aspects of the Holden business, including the wind-down of the National Sales Company, GM Holden Engineering, GM Design Australia, Holden Financial Services and Maven Australia. We are commencing work with our dealer partners on timing to cease sales of new vehicles, as well as transitioning dealerships to authorised service outlets.“
Queries and general questions to be directed to the Holden Facebook page.
To read the full statement, head here.
More News
