Publication Details

Gollan, P., Bendemra, H., Ergas, H., Dr Elizabeth van Acker, E., Economou, N. & Toner, P. (2013). Holden to cease making cars in Australia by 2017: experts react. The Conversation, (11 December),


General Motors Holden has confirmed speculation it will withdraw from car production in Australia by the end of 2017. The announcement by Holden comes after days of sustained public speculation and calls from the federal government for the company to clarify its intentions. Holden has said it will "transition to a national sales company in Australia and New Zealand" and "discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017." GM Chairman and chief executive officer Dan Akerson cited a "perfect storm of negative influences", including the sustained strength of the Australian dollar, the high cost of production, a small domestic market and highly competitive and fragmented market. Holden said a total of 2900 jobs will be affected, comprising 1,600 from the Elizabeth vehicle manufacturing plant and approximately 1,300 from Holden's Victorian workforce. Attention is now turning to Toyota, which will be the single remaining car manufacturer in Australia. In May, Ford announced it would cease manufacturing cars by the end of 2016, with the loss of 1200 jobs. Expert reaction follows: