Holden to close Aussie plants

Holden will close its Australian operations in 2017, with General Motors today announcing it will transition to a national sales company in Australia and New Zealand. “The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, says Dan Akerson, chairman and chief executive officer of GM. “This includes the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.” As a result of the closure, about 2,900 positions will be impacted over the next four years. This will comprise 1,600 from the Elizabeth vehicle manufacturing plant and around 1,300 from Holden’s workforce in Victoria. Research released last month suggested that Holden’s closure would cost the South Australian economy NZ$1.32b and 13,200 jobs. The Australian Manufacturing Workers’ Union says Toyota is likely to follow suit, meaning the end of the automotive industry in the country. In that case, up to 50,000 jobs could be lost with second and third-tier suppliers also forced to close.