Cars in India | Autoportal.com
Select City

GM to stop manufacturing cars in Australia

Snapshot: General Motors' subsidiary Holden to stop manufacturing cars in Australia because "Building cars in this country is just not sustainable."

General Motors (GM) has announced that it will stop manufacturing cars in Australia by the end of 2017. This was followed by Ford Motor Co. announcing that it is going to end production in Australia in 2016.

"The decision to end manufacturing in Australia reflects the perfect storm of negative influences the industry faces in the country including 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," GM's chief executive Dan Akerson said in a statement.

Holden doesn't believe that Australia is a sustainable market for them. They had already recieved 1.8 billion Australian dollars from the Australian government. Industry Minister Ian Macfarlane said he was disappointed that GM had made its decision before an inquiry had completed an analysis of government support of the auto industry.

The announcement was made the same day GM announced that Akerson will be replaced by Mary Barra on Jan. 15. GM's Australia chairman Mike Devereux said the priority over the next four years would be to ensure the best possible transition for workers in South Australia and Victoria.

Related car news

  • Australian government to take steps in lieu of announcement by Holden 13-12-2013 Arpit Phillips Australian government to take steps in lieu of announceme...
  • GM to discontinue Chevrolet Enjoy in India 22-06-2016 Davender Soni GM to discontinue Chevrolet Enjoy in India
  • General Motors acquires self-driving car kit startup Cruise Automation 14-03-2016 Davender Soni General Motors acquires self-driving car kit startup Crui...
  • Toyota is yet again the global sales leader 09-02-2016 Autoportal Team Toyota is yet again the global sales leader
  • India-bound New Chevrolet Compact Sedan Coming in 2017 07-08-2015 India-bound New Chevrolet Compact Sedan Coming in 2017
  • General Motors rolls out 500 Millionth vehicle 05-05-2015 Arjit Garg General Motors rolls out 500 Millionth vehicle


Helpline