About 600 Holden employees will lose their jobs after parent company General Motors announced it would axe the iconic Australian car brand by the end of the year.
Key points:
- The company pledged to provide at least 10 more years of customer service for Holden owners
- GM executives said the brand was struggling in a fragmented right-hand drive market
- Federal Industry Minister Karen Andrews said it was "unacceptable" the decision was made without consulting the Government
GM said the brand was no longer competitive in the current market and would be "retired" from sales, design and engineering across Australia and New Zealand by 2021.
The announcement drew criticism from the Government, with Prime Minister Scott Morrison saying he was angry the brand was allowed to "wither away".
Holden ended its Australian manufacturing operations in October 2017, forcing hundreds of job losses.
About 800 Holden employees had remained in Australia, including 600 Melbourne workers focused on designing cars for the Australian market.
GM International Operations senior vice president, Julian Blissett, said today's announcement would mean the "overwhelming majority" of Holden staff would lose their jobs by the end of June 2020.
"This was an agonising decision for us and one we didn't make lightly or easily," Mr Blissett told a Melbourne press conference.
The announcement coincides with GM's decision to withdraw Chevrolet from the domestic market in Thailand by the end of the year.
Mr Blissett said the total bill for exiting Thailand, Australia and New Zealand would be more than $US1 billion, "so this is not a cheap undertaking".
Company vows 'fair' transition for workers, dealers
GM officials said about 600 employees would leave by June, while 200 would remain in ongoing roles connected with the company's pledge to offer at least 10 more years of customer service to owners of the 1.6 million Holdens in circulation.Work at the carmaker's Port Melbourne site will be wound down by the end of June and the Lang Lang calibration facility will finish up in August.
Late last year, the company quietly announced it was axing the Commodore and Astra lines, following dwindling sales.
GM Holden interim chairman and managing director, Kristian Aquilina, said the company had "chased down every conceivable option" to prevent the closure of the brand.
The executives said the business case for Holden struggled due to the small market and global consolidation of the car industry.
Mr Aquilina said the axing was not a reflection of the "expertise and commitment" of Holden dealers and employees, who were "heartbroken" by the announcement.
"There's lots of tears, lots of hugs. We're a Holden family and we're there for each other," he said.
"We've been there amongst the huggers and tear-jerkers too. So it's an emotional time."He said those losing their jobs would be offered a "separation package" and a small number of people would be given the option to relocate.
GM said it would now focus on specialty vehicles in Australia and New Zealand.
Mr Blissett said there would be a "fair package" of transition support for suppliers and the 185 Holden dealerships in Australia.
Company accused of 'walking away from Australia'
The future of the Holden brand has been a political issue since 2013, when the carmaker first announced it would end manufacturing in Australia.
Prime Minister Scott Morrison said he was "disappointed but not surprised".
"But I am angry, like I think many Australians would be. Australian taxpayers put millions into this multinational company. They let the brand just wither away on their watch. Now they are leaving it behind," he said.
Federal Industry Minister Karen Andrews said it was unacceptable for GM to have made the decision without any consultation with the Government.
"To make an announcement of such significance, I think it would have shown a considerable amount of goodwill, as well as decency in picking up the phone and talking to Government beforehand," she said.Ms Andrews said it was disappointing for the Government to have only learnt a few hours before the announcement that the company was "walking away from Australia and Australians".
Opposition spokesman for industry Brendan O'Connor said it was a sad day and another nail in the coffin for Australia's manufacturing sector.
He said there were multiple reasons for the decision but he thought "the Government really dropped the ball here".
"They had no idea about the matter, which also shows their lack of engagement with the sector [which] is of concern too."
Australian Manufacturing Workers' Union (AMWU) automotive and transport coordinator Dave Smith said GM's decision was shocking and unexpected.
"It's very disappointing for the workers who will be affected by this decision. It comes as a bit of a surprise," he said.
"There's really been no talk of this and no notice that this might be on the cards.
"And when I spoke to a company representative that rang me today, I very much got the impression it was a surprise for local management as well."
Mr Smith said the Australian automotive industry had been "a real loser" of globalisation, and said the Federal Government should "hang their heads in shame for watching over the demise" of the industry.
"It [Holden] could have stayed in Australia if it had Government support," he said.
When Mr Aquilina was asked whether Government assistance could have helped save the brand, he said the decision was "up to General Motors and Holden".
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