Demise of General Motors in Australia

[Wollfen]

So General Motors Holden in Australia announced Monday it is closing up shop altogether in the country by the end of the year. It won't even be selling imported vehicles either. Eight years ago General Motors was Australia's top selling locally manufactured brand and in 2019 it sold 43 000 vehicles in total, what the hell happened?
In a market that sold over a million cars in 2019, even Ford is starting to look shaky with only 63 000 cars sold. Will it be next?
Jobs under threat with Holden closure

 

[barnfind]

RH vehicles being pulled out of several countries, GMSV may still be available
REPORT: GM to close Holden brand, cease RHD production - Speedcafe

 

[The Goose]

Blame fiat.

GM - fiat work together to build a smart car type pos.

fiat pulls a fast one tells GM to buy them during the joint venture (they know GM can’t) deal falls apart. GM backs out by giving up the rights plans etc to the joint venture car and then pays them their cash reserves.

GM then declares bankruptcy and obama steps in for the coupe de gras.

GM in ruins.

fiat uses that money to buy Chrysler.

Not bad for a car company that’s never made a profit since WW2.

Of course that’s the comic book version.

 

[Old Mike]

That’s a shame. I’m sure it’s not because there’s no profit. Instead it’s probably because the profit margin isn’t big enough. I’m betting the folks down under were proud to build their own cars. Now they’ll be stuck buying the f**king “world” platforms everyone else is buying. Back when GM first shot itself in the foot and quit building rwd cars, they turned to Holden to try to bring them back here. Cool cars, but the General just didn’t seem willing or able to market them properly. What a waste. Too bad, too. The Ausies can look back on some really interesting machines.

 

[LeBaron1973]

That’s a shame. I’m sure it’s not because there’s no profit. Instead it’s probably because the profit margin isn’t big enough. I’m betting the folks down under were proud to build their own cars. Now they’ll be stuck buying the f**king “world” platforms everyone else is buying. Back when GM first shot itself in the foot and quit building rwd cars, they turned to Holden to try to bring them back here. Cool cars, but the General just didn’t seem willing or able to market them properly. What a waste. Too bad, too. The Ausies can look back on some really interesting machines.

Yes, as Gary (Wollfen) and I can remember- not so many years ago the Aussie market was primarily Holden vs Ford, eventually tariff reductions and a more quality imported range of vehicles from Japan along with both Holden and Ford making large family cars which people didn't want anymore took care of things. Perhaps had both manufacturers offered their US range (Aussie built) things may have been different, Aussie built Corvette's, Camaro's, Mustang's, and the commercial ranges like the F-100 and Chevrolet and GMC equivalents would have been popular- instead, because of lack of will to engineer for RHD, the commercial vehicle market was handed to the Japanese.

Not to forget Chrysler Australia which produced good vehicles but were always 3rd in the market.

 

[crv]

What happened?, besides the federal government's great idea of doing away with tariffs, people stopped buying Holdens (and Fords). Cheaper imports, both in price and build quality (the best selling car at the moment is the Toyota Hilux, made in Thailand) were the subject of heavy advertising, and the lemmings just follow the crowd, suddenly it became hip and cool to drive a Hyundai and those sticking with Holdens were 'bogans'.
The other thing that changed was demographics, Asians don't drive Holdens (a few do, but they would be a tiny minority) and certainly weren't buying the local product, and there are large numbers of car buying Asians in Australia.
The idea that the traditional family sedan was too big or outdated is nonsense, SUVs are very common and they are not small vehicles by local standards.
Magazine articles were praising imported cars for their supposed better quality and reliability decades ago, with a few exceptions, this was hardly the case, many motoring 'experts' were critical of the Australian cars, I reckon that prolonged negative publicity also had an impact on sales for both Ford and Holden.
Bit by bit, this country has and continues to lose its manufacturing capabilities and more and more imported goods become the only choice, heck, even Mars bars are now being brought in from China!

 

[Wollfen]

Mmmm Mars bars.... Oops, damn, I am so easily distracted from what is important. Uh, that make me a typical Aussie?

 

[Pete Kaczmarski]

I better hoard parts for my '04 GTO....

 

[Carmine]

As these things happen, I basically take solace knowing the end of what we know as the "car" is coming anyway. Soon enough we'll be passengers in autonomous, toaster-shaped, commodity vehicles anyway. Will it even matter what badge is on the front?

While I find all aspects of the industry historically interesting, Australia is about the only independent market outside the U.S. where I'd actually desire any of their automotive products and thus, despite what tempers my sadness, this is a damn shame. There is an element to anglo-culture that eventually seems to destroy itself, so I'm not surprised to see another element of Australian industry disappear the same way the British industry did two decades earlier. America trends this way, but either our mix of western European blood demands some sort of nationalistic pride, or we're just too damn big to entirely disappear.

I would like to see Australia before it is gone. Of course I know it won't be "gone"... Just everything that made it an interesting place.

 

[LeBaron1973]

Mmmm Mars bars.... Oops, damn, I am so easily distracted from what is important. Uh, that make me a typical Aussie?

Yes.

Lol

 

[LeBaron1973]

I better hoard parts for my '04 GTO....

View attachment 354025

Probably no need, unless prices start to rise. Rare spares in Australia make lots of Holden and Ford parts under license which is great for restorers, no doubt they'll continue to do do now both makes are out of local production.

Check with your GM parts supplier.

 

[Newport 66]

Yes.

Lol

Damn, scratch them from my candy bar list. I wonder(but really, do I want to know) who else are china-chocolate???

 

[crv]

Damn, scratch them from my candy bar list. I wonder(but really, do I want to know) who else are china-chocolate???

A lot of the well known brands (food) are now made in China, from chocolate/lollies, buiscuits, canned food, pet food, etc.
We have labels that tell us the percentage of local and imported ingredients, but where those imported ingredients come from, who knows.

 

[70bigblockdodge]

My 2 cents is GM makes some really bizarre decision. They walk away from markets citing "not enough profit margin" this is not losing money in a market segment, but basically acting like a spoiled child because they did not win. Ford does similar things, but knows where it's bread is buttered, so they do not look as foolish.
Chrysler is a whole different animal in regards to bad management.
I follow Carmine's thoughts on cars and autonomous, toaster like vehicles. One saving grace in independent driving vehicles is a vehicle I despise, modern pickup trucks. The macho image promoted by these fluff trucks is large enough to maintain non autonomous driving segment at least till I'm dead and gone, after that that's your problem.