Ford thanked Holden “for inspiring us to keep striving higher.”
General Motors announced last night that it will discontinue the Holden brand from Australia and New Zealand. This is a sign of how rapidly the automotive industry is changing. Although the news was unexpected, it was not surprising. There have been signs that Holden could be going out of business for some time. Ford Australia expressed its gratitude for Holden’s passing, as well as other automakers in those nations.
Ford Australia is sad to announce that Holden will be closing its doors,” the automaker said in the first of a series of tweets. “To our friends from Holden, thank-you for keeping us on our toes. It also inspires us to aim higher. “We will miss you,” Ford concluded.
GM’s decision to discontinue Holden comes after a series of difficult decisions. They began in late 2017, when Holden production in Australia stopped. In late 2017, Holden announced that it would be cancelling the Commodore- and Astra models. Holden couldn’t afford to remain competitive in these two countries. Over the past few years, GM has been leaving right-hand drive markets – it has left the United Kingdom and India, Japan, South Africa, and Japan.
GM’s decision to close the Holden brand does not mean that GM will be leaving Africa. At least, not yet. Service will be provided for the automaker’s vehicles for at most 10 years. To assist owners who are not yet customers, the company will create an aftersales network that will allow them to support existing warranties and provide service. The brand’s demise will result in the loss of approximately 600 jobs. Holden’s maintenance services will be run by 200 people.
Another reminder of how the automotive industry is constantly in flux is the Holden brand’s closing. GM’s investment priorities are the reason for Holden’s demise. Automakers all over the globe, including GM, are tightening their purse strings to compete with Silicon Valley and other tech firms that push into electric vehicles, semi-autonomous autonomous self-driving, and fully autonomous vehicles. The next few years are going to be expensive, which means that GM will need to find savings where possible.