Friday, 28 February 2020 08:55

Holden to bite the dust

Written by  Mark Daniel
Holden will no longer exist post 2021. Holden will no longer exist post 2021.

A few weeks ago, it told us – with a poker face – that utes and SUVs were the future.

However, last week, Holden put its cards on the table, telling us it’s folding by the end of 2021 in both New Zealand and Australia. As the retrieval plans unfolds, it appears that the only staff to remain from the overall headcount of 800, will be those in the aftersales departments looking after service, warranty and parts issues.

Citing a global consolidation of the automobile industry, GM operations senior vice president, Julian Blissett noted that GM had worked through multiple scenarios, but ultimately concluded it was unable to rebrand and remain competitive with a product that only sold in two markets.

A further consideration was the fact that in other parts of the world, GM had removed itself from right-hand drive markets, so it was effectively building vehicles that sold only in Thailand and Australasia – all of which are relatively small markets compared to the rest of the globe.

The company has said that it will honour all service and warranty commitments, alongside making parts available for at least ten years. Existing dealers, 185 in Australia and 31 in NZ, will be offered contracts to become authorised service agents. They will also be helped with compensation packages and ongoing assistance to liquidate current inventories.

It is interesting to note that the manufacturing plant in Thailand, that builds the Colorado ute, has been sold to Chinese manufacturer Great Wall, which has already promised new product for the buoyant ute sector in NZ.

Holden has stated that it will continue to trade until the last unit is sold, while also ensuring ongoing support to the existing 1.6 million vehicles. At this stage, it says it is also in discussions to establish a supply chain to support GM badged, specialised vehicles like Silverado and Camaro. 

More like this

The last of the Sports Cats

The launch of the Series 2 HSV SportsCat was an endorsement of the risky decision to take the performance brand into the crowded high-end ute market.

Holden on the road for summer

In a move to demonstrate the capability of its vehicles, Holden recently put the talk to one side and ‘walked the walk’.

Featured

Back the sector that backs NZ

OPINION: The biggest issue currently facing our industry is environmental policy, writes Beef+Lamb NZ chief executive Sam McIvor.

 

National

Lamb price down, but not weak

While lamb prices are starting the new season at around 16% below last year’s levels, they are not outright weak,…

Quota split a major worry

New Zealand meat exporters want the EU and UK to get serious on reaching a deal on post-Brexit quotas.

NZ meat exports at risk

Nearly half of our country’s meat exports are at risk unless there is urgent action by government to allow migrant…

Machinery & Products

JCB releases new loader range

Originally scheduled for a June Fieldays release, which was stymied by the Covid crisis, JCB has recently unveiled its third…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

He's back!

OPINION: This old mutt understands that former Fonterra chief executive Theo Spierings has landed himself a new gig back in his…

Utu?

OPINION: Your canine crusader understands that the farmer’s favourite politician – Environment Minister David Parker – not content with implementing…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter