GM pulls plug on Holden operations in Australia and New Zealand

[BennoB66]

Announced today that GM will shut down its operations in Australia and New Zealand at the end of 2020. This means no more GM cars or trucks at all. Apparently they can't be bothered with RHD vehicles. I wonder what this means for the UK with their vauxhall insignia? GM say that they will provide support for the 3 or so years on the warranty but I see parts getting hard to get. Especially when all GM products are no longer being sold in these markets.

 

[Stray_Kiwi]

Feeling pretty gutted really. I have 20 months left on my warranty now I am worried about increasing servicing costs. The crippling depreciation was something I was well aware of going in. The car owes me nothing but is now worth half what I paid for it 9 months ago.

Still a great drive though.

 

[BennoB66]

Feeling pretty gutted really. I have 20 months left on my warranty now I am worried about increasing servicing costs. The crippling depreciation was something I was well aware of going in. The car owes me nothing but is now worth half what I paid for it 9 months ago.

Still a great drive though.

I read that of the 200 Holden dealers in Australia, 180 sell other brands too so it seems the service network will remain for most people.

 

[1500cc]

And just when they were going to build RHD Corvettes for them.

 

[Wlepse]

WTH? You know when I bought the Buick I was worried the nameplate wouldn't be around till the end of my warranty...now I wonder how much longer GM will be around. Seems like they are bailing on everything which makes you think they are hard up for cash.

 

[PrincipalDan]

And in the afterlife William C. Durant wept...

» William Durant | Automotive Hall of Fame

 

[1500cc]

WTH? You know when I bought the Buick I was worried the nameplate wouldn't be around till the end of my warranty...now I wonder how much longer GM will be around. Seems like they are bailing on everything which makes you think they are hard up for cash.

I miss GM's glory days as well. But as hard as it is to watch, pulling out of markets where they realistically have very little chance of returning to profitability is the right choice for the company.

 

[Ctrcbob]

Announced today that GM will shut down its operations in Australia and New Zealand at the end of 2020. This means no more GM cars or trucks at all. Apparently they can't be bothered with RHD vehicles. I wonder what this means for the UK with their vauxhall insignia? GM say that they will provide support for the 3 or so years on the warranty but I see parts getting hard to get. Especially when all GM products are no longer being sold in these markets.

Japan can supply plenty of RHD cars.

 

[Wlepse]

I miss GM's glory days as well. But as hard as it is to watch, pulling out of markets where they realistically have very little chance of returning to profitability is the right choice for the company.

I think the bigger question should be why they are not profitable. I thought there was an article written about a year after PSA took over Opel that they turned a slight profit (found it GM sold these money-losing brands. Now they're making hundreds of millions). How did they manage that in a year when GM couldn't for years?

 

[trflesher]

Here's an article I found via LinkedIN today in case anyone else wants to read more on it ... General Motors is retreating from Australia, New Zealand and Thailand

 

[Stray_Kiwi]

Here's an email sent to me by the Interim GM of Holden Australia/New Zealand:

By now, you may have heard the news 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. While we understand the impact that this decision may have on you, we want to provide assurance that 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

We have a long transition in front of us and we are focused on supporting our customers and our Dealers through this change. The doors do not close tomorrow. In fact, your local Dealership remains in operation and any existing bookings and agreements remain in place. 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. Any future changes to our Dealer network that have a direct impact on you, will be communicated at that time. This decision has not been taken lightly, especially considering the iconic status of the Holden brand. Holden will always have a special place in the development of our countries. As Australia and New Zealand grew, Holden was a part of the engine room fuelling that development. This announcement will be felt deeply by the many people who love Holden, drive a Holden and feel connected to our company which has been with us for 160 years.

 

[1500cc]

I think the bigger question should be why they are not profitable. I thought there was an article written about a year after PSA took over Opel that they turned a slight profit (found it GM sold these money-losing brands. Now they're making hundreds of millions). How did they manage that in a year when GM couldn't for years?

It's probably a bunch of things. One of the biggest was that PSA immediately axed 3700 Opel manufacturing jobs, something GM was too afraid to try with the unions. So I'll give PSA credit for that. But after that, it's a a bit murkier. For example GM didn't didn't transfer the underfunded pension liability to PSA, so that saved PSA money. Also I believe Europe uses different accounting practices, so it's likely some of the profit was a result of shifting Opel expenses around on paper.

Bottom line is that the auto biz is a long term proposition, and no amount of management brilliance can effect a huge turnaround overnight. Even the 3700 jobs would only translate to about $400M in savings, and that's before accounting charges, so there has to be more to the story than just "GM are morons".

 

[BennoB66]

Japan can supply plenty of RHD cars.

Yes sales of the Toyota camry hybrid are soaring and the V6 model sells as well.

 

[SweetWafer]

Feeling pretty gutted really. I have 20 months left on my warranty now I am worried about increasing servicing costs. The crippling depreciation was something I was well aware of going in. The car owes me nothing but is now worth half what I paid for it 9 months ago.

Even with a supposedly functioning dealer network in the USA, it took GM four months to supply a left rocker panel for my crashed car.

I don't know why they made this car at all... It is really clear that they have very little interest in supporting those of us who bought these vehicles.

 

[D2R]

It's probably a bunch of things. One of the biggest was that PSA immediately axed 3700 Opel manufacturing jobs, something GM was too afraid to try with the unions. So I'll give PSA credit for that. But after that, it's a a bit murkier. For example GM didn't didn't transfer the underfunded pension liability to PSA, so that saved PSA money. Also I believe Europe uses different accounting practices, so it's likely some of the profit was a result of shifting Opel expenses around on paper.

Bottom line is that the auto biz is a long term proposition, and no amount of management brilliance can effect a huge turnaround overnight. Even the 3700 jobs would only translate to about $400M in savings, and that's before accounting charges, so there has to be more to the story than just "GM are morons".

In addition, PSA already has EU compliant stuffs in the works.

 

[2007LucerneCXL]

GM's voodoo accounting, I'm sure AU government probably has a few horror stories of deals it made with GM.

It's not just the Holden owners who are going to have to deal with this issue, it's all the support personnel and services that were in some way supported by Holden who will also be in trouble financially or employment wise. But when GM shut down the Holden plants and last year Holden stopped production on the Regal models due to low sales for a period it was the beginning of the end.

Holden made some outstanding performance cars and a few got exported to the USA as other GM models, for those owners I'm sure there concerns about longtime support for parts that are not a GM multiple US models have to be right up there now.

 

[Stray_Kiwi]

But when GM shut down the Holden plants and last year Holden stopped production on the Regal models due to low sales for a period it was the beginning of the end.

I'll refer to the Commodore as a Regal for simplicity. The facts are:

• Sales of the Regal have been in steady decline since 2003. Even the 2013-2017 VF model which was the last truly Australian made car only sold half of the VX/VY models sales volume in 2003.
• Holden's sales of light trucks (called Utes down under) have been very strong, in the top 3 in it's category.
• The Acadia sells pretty well in it's segment as well as does the Trailblazer

There seemed to be enough evidence to suggest sales of SUVs and Utes could save Holden, but GM had other ideas. I suspect they are getting out while the business is still viable.

 

[2007LucerneCXL]

None of us mere mortals would ever be able to figure out how GM makes a decision, life is to short and the forum doesn't have enough space LOL.

When GM announced it pulled out of the car market in favor of SUV's and trucks in the USA it seemed like common sense had left the board room. But to shut down a entire brand, well it's following a plan and what that long term is who really knows.

Again sorry on the loss as Holden joins the other GM brands that have been discontinued which is getting larger than current brands.

 

[96americanluxury]

Yes sales of the Toyota camry hybrid are soaring and the V6 model sells as well.

Which is amazing. A buddy of mine and I drove all of the midsize sedans when he was in the marketplace last year, and the Camry was at the bottom of the list right next to the current generation Hyundai Sonata. The Camry has a terrible interior made with cheap plastics and questionable ergonomics, one of the worst infotainment systems in the business, isn't particularly quiet on the road and has nothing special going for it in the driving department.

How they are the #1 sedan in sales, boggles the mind.

 

[PrincipalDan]

Which is amazing. A buddy of mine and I drove all of the midsize sedans when he was in the marketplace last year, and the Camry was at the bottom of the list right next to the current generation Hyundai Sonata. The Camry has a terrible interior made with cheap plastics and questionable ergonomics, one of the worst infotainment systems in the business, isn't particularly quiet on the road and has nothing special going for it in the driving department.

How they are the #1 sedan in sales, boggles the mind.

Well Toyota sedan customers (by-in-large) aren't really spring chickens. There are a solid percentage who are buying Camrys on the strength of that great one they had in 1996 - or because their Dad always bought Camrys. Toyota is cheaping out on interiors (I owned a 2010 Highlander) but so far I can't find evidence that they're cheaping out on mechanical bits. My Highlander's interior would have been better if it had been made by Rubbermaid but after driving it to 135,000 ish miles I was convinced it would hit 250,000 no problem. To some people that's all that matters.