General Motors to shut down RHD operations; Holden brand axed

General Motors is going through a very rough patch of time and has taken many tough decisions to date. However, one of the toughest decisions it had to take is wrapping up its business, including design, engineering and sales in Australia and New Zealand by 2021.

With this, General Motors will axe Holden from its Australian operation. This news has come just three years after the company winded up its local manufacturing. Julien Blissett, the VP of General Motors International Operations mentioned that the automaker took many steps to try and turn things around for the good. However, given the significant changes that the auto industry underwent, the strategies did not turn out to be very fruitful.

One of the many reasons that seem to have forced the giant automaker to wrap up completely is the fragmented right-hand-driven markets. Many factors went against the investment required to continue the alliance with Holden, like the lack of economic growth of the company itself and the insufficient return on investment.

After having considered these factors, GM could not prioritise investment in Australian operations over the global interest. However, this decision to retract business is solely an internal issue and has not been caused by Holden or its talent in the industry.

On the other hand, the MD and Interim Chairman at Holden, Kristian Aquilina said that it will work closely with all of its stakeholders to ensure a smooth transition and a respectful and dignified shutdown. That said, it will continue to be in-line with the warranties and service guarantees at the time of sale. Hence, it will provide after-sale service and supply of parts for at least 10 years. Plus, it will also handle any safety-related issues or recalls.

Holden will also work towards ensuring that this does not affect the employees and dealers adversely. All the employees will get employment transition support and separation packages. The dealers will also get transition arrangements - including the option to continue as authorised service spots for Holden.

Interestingly, GM was planning to launch the Chevrolet Corvette and had also introduced the Equinox and Acadia. According to the automaker, these were the strategies it had implemented to try and turn the fortunes around. But yet, all the efforts failed.

Also read: Volkswagen California (Transporter) set to return to Australia by Q3 of 2020