Opinion
Updated
Holden was always going to find life tough once it stopped producing cars in Australia, late in 2017.
After all, this was a brand that built its reputation on making cars in Australia for Australians and Australian conditions.It was as Aussie as Vegemite, Qantas and Bondi Beach.
But the chain of events that led to the demise of Holden kicked off decades earlier — and much of it can be blamed on parent company General Motors.
GM damaged the brand
For decades Holden had largely been left to its own devices, creating cars Aussies loved.By the 2000s it was having to blend into the broader GM family and learn to think and act as a global car maker.
The economics of building a volume car for a very small part of the world no longer stacked up.From a brand that hit the bullseye more often than not, suddenly Holden was selling many imported cars that did not live up to the Holden brand.
Sales were initially unaffected. The lag effect in the car industry and the power of the brand meant buyers trusted Holden to deliver.
But drivers soon realised some of the then-new Holdens — Captiva, Viva and Epica, to name a few — were not what they expected.
Formerly rusted-on Holden drivers were gradually doing the unthinkable and buying Toyotas, Mazdas and Hyundais.
Holden went from being a dominant number one to thrashing it out with imported brands.
And the SUV did the rest
Worse, the car that was the backbone of Holden — Commodore — was out of favour.The families that formerly flocked to large sedans were migrating to SUVs.
Holden's SUV line-up had gaping holes and what was there did little to sway those gravitating to rivals.
The loyalty Holden once thrived on was disappearing.
The car company that once struggled to make a mistake — and was readily forgiven when it did — found itself battling like it never had previously.
GM made tough decisions
When parent GM entered bankruptcy in 2009, the situation worsened.Under the eye of the US Government, the former giant of the industry conducted a clean-out of brands, killing off Hummer, Pontiac, Saturn and Saab.
Not long before it had shelved Oldsmobile, its oldest brand.
Clearly, GM wasn't afraid to make tough decisions.
In the background, the development of key models was watered down or postponed.
Such moves make balance sheets instantly more appealing to bean counters and shareholders, but inevitably set in train a string of substandard products years down the track.
GM turned its attention to the big growth market of China and reviving its fortunes in the United States. Between them, they are the two biggest car markets in the world.
Holden survived the clean-out … at first
Holden was shielded from the chaos, in part because it had an established manufacturing facility as well as design and engineering centres that were highly regarded at head office.But the substandard imported product continued and Commodore sales continued to be devoured by SUVs.
Late in 2013, Holden announced it would cease manufacturing cars in Australia.
Some saw that as the death of Holden. Large, locally made cars were what Holden was built on.
But Holden was not giving up, insistent it would create a thriving import business.
While questions were being raised about the brand's viability, it appeared Holden had a lifeline from Europe.
Holden has long had an affiliation with Opel, GM's European subsidiary.
Opel and Holden both joined the GM fold in 1931 and became part of the American furniture while retaining their own identities.
The first Commodore of 1978 was based on an Opel design and Holden has enjoyed enormous success selling cars such as the Barina and Astra, each sourced from Opel.
Holden had rekindled its relationship with Opel and committed to taking a large chunk of its new models from the European manufacturer.
It seemed like a return to the old Holden, good cars and all.
But the China/US focus also took its toll on Holden's planned product portfolio.
In 2017, GM unexpectedly sold Opel to Peugeot and Citroen.
Around the same time, GM was retreating from right-hand drive markets, such as South Africa and Japan.
The millions of dollars it costs to engineer and build a car with the steering wheel on the right could not be spread across multiple markets, leaving Holden to foot most of the bill.
The numbers didn't add up
For GM, the prospect of dealing with a tiny (dwindling) market that had specific manufacturing requirements did not compute.In working on its own survival — which some would argue is not certain — GM effectively trampled over Holden in the rush.
While Holden spent more than half a century creating those great cars Australians loved, for the last decade or two it was almost entirely in the hands of a head office on the other side of the world.
Bad decisions killed a brand that not long ago seemed invincible.
As for the future, expect the passion of Holden to linger for decades.
Those who loved the brand still cherish and admire those classic Holdens.
Enthusiasts will still drive their old Holdens on weekends and car clubs will continue to celebrate the success of Australia's first car maker.
It's just that they'll be driving a Toyota, BMW or Hyundai during the week.
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