The American car giant General Motors has decided to close its historic Australian car brand Holden as it leaves the market in Australia and New Zealand by next year. The officials of the company have informed that they will wind down the Holden sales, designs and engineering operations in Australia and New Zealand in 2021. The iconic car brand Holden has not been fetching adequate returns on investments for quite some time. The company will freeze its operations in Thailand as well. General Motors has as well planned to sell off its Reyong factory in Thailand to China’s Great Wall Motors. It will also withdraw the Chevrolet brand from Thailand by the end of this year. This announcement has come after three years GM motors has stopped its manufacturing plant in Thailand.
The CEO of General Motors, Mary Barra has said that right now, the company wants to concentrate on those markets, which can promise strong returns. She has assured that the company will fully support its employees and customers through this transition. Reports indicate that this announcement might result in 600 job layoffs. The president of the company, Mark Reuss has told that the company has looked at every possibility to keep the Holden brand but it will cost a lot to sustain in a highly fragmented right-hand-drive market. After exiting from low-profit markets, the company is expected to focus on the US, China, Latin America, and South Korea. This decision is going to end Holden’s 160 years of association with Australia. The company was established in South Australia in 1856 much before it started making vehicles in 1908.
General Motors is planning to scale back operations in all three countries to selling niche specialty vehicles. The American carmakers plan to do a similar thing in Japan, Russia, and Europe. The company has said that it will honor all warranties of the customers and will continue to sell its services and spare parts in the three nations Australia, New Zealand, and Thailand. Local operation units will take care of the recalls and safety issues of cars reported by the existing customers. Last year, General Motors had also announced that it was planning to stop selling its iconic car model Commodore after four decades.