Just this May, following Ford’s bitter announcement about ceasing its manufacturing operations in Australia in 2016, GM’s Holden had said that it would continue to build cars in the country.
Come today, local news channel ABC reported that Holden has made the decision to “pull out of Australia as early as 2016, according to senior Government ministers”. The report added that the announcement was to be made this week, but is has been delayed until early next year when workers return from their summer vacations.
Holden, on its behalf, brushed off the reports and said it is still in discussions with the Government to receive an assistance package that would allow it to continue building cars in the country. Nevertheless, an unnamed source told ABC that GM has already made up its mind to leave Australia regardless of any assistance package.
It’s not made clear in the report whether General Motors would shut down Holden’s manufacturing and possibly other departments such R&D (research and development), while keeping the name for imported cars, or if would pull the plug on the brand altogether – though, admittedly, the latter wouldn’t make much sense.
According to recent studies, if Holden were to stop producing in the country, it would cost the South Australian economy $1.24 billion and 13,200 jobs alone, while its departure would surely affect the remaining companies in the (general)industry, which would likely follow suit shortly after leaving Australia without a car manufacturing business.
Thanks to Josh for the tip!
PHOTO GALLERY
