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GM to stop manufacturing cars in Australia

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."

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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.

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