Sad news for Australia

[Sieg]

GM says it will quit building cars in Australia
9:48 AM ET, 12/11/2013 - United Press International
General Motors said Wednesday it would quit manufacturing operations in Australia by the end of 2017, ending 2,900 jobs in what it called a challenging market.

"The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive 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," said outgoing GM Chairman and Chief Executive Officer Dan Akerson in a statement.

GM said the Australian dollar had more than doubled in strength against the U.S. dollar since 2001, rising from US $0.50 to as high as US $1.10 and jumping from 47 to 79 on the Trade Weighted index.

That makes goods 65 percent more expensive over the past 10 years, GM said.

In addition, with Toyota Motors as the only other automaker producing cars in the country, the burden of maintaining a supply chain of component parts hits GM harder than it otherwise might.

Toyota acknowledged the difficulty of keeping a supply chain going by itself and said the GM decision could push it to drop production in the country as well, the Australia Broadcasting Corporation said.

"This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia," Toyota said in a statement.

Australian Manufacturing Workers Union says it is now "highly likely" Toyota will leave Australia too.

"Toyota have told me they won't be able to survive in Australia because of the lack of volume in the component industry," said national secretary of the Australian Manufacturing Workers Union vehicle division Dave Smith.

"This is a dark day but there will be better days ahead," said Australian Prime Minister Tony Abbott upon his return from South Africa, where he attended a memorial service for former President Nelson Mandela.

South Australia Premier Jay Weatherill said the decision to quit building what is considered the national brand GM Holden, was a "body blow ... not just economically but socially."

"Holden has been an iconic national brand for Australians, a part of our heritage, which meant a great deal to Australians over several generations," said Deputy Prime Minister Warren Truss.

[BMR Sales]

That is Bad News, as Holden has Pioneered a Bunch of Stuff that migrated to the US (Pontiac GTO & G8)

I wish they had brought the Holden Ute/El Camino to the US as a Chevy.

T.C.

[Musclerodz]

Hopefully it is not the end of Holden, just moving manufacturing out of the country like everything else.

[cluxford]

It isn't great for the workers impacted, but was never sustainable, every Holden manufactured in Australia last year sold below the cost to build.

On a bright note that only leave Toyota. Ford announced they will pull out in 2016 earlier this year.

If Toyota goes then we have no local car manufacturing.

Yes this has massive implications for the tens of thousands employed in the sector.

But for those of us hankering for some modern muscle, they might reduce import duties and tariffs and we can start seeing some Camaro's and Corvette's, CTV's etc on our shores

[renegade6]

Very sad indeed. Holden produces some amazing products.

[J-440]

Isn't the Camaro produced in Australia as well? Wonder where the production line is going to move to...Detroit?? HA!! Also, how destructive are the unions down under? If they were like the unions in America, I can see why the doors are closing.
Hey GM, I'm still waiting for my bailout money to be returned to my 401K. Or you can give me a HUGE discount on a brand new Vette. Whaddya say eh dipsh#@s??

[beRSerk]

Nah the camaro isnt produced in australia, we cant even buy one here from a dealer, we have to import and pay a premium to get it changed to right hand drive.
What your probably thinking of is that it uses the australian designed 'zeta' platform, so essentially the chassis is the same architecture as our current holden commodore, which is now also your new chev SS.
Every car ive ever owned (until now my 69 camaro) has been a holden or an HSV, so its sad to see them go, HSV especially as they make some pretty bad ass cars, the new HSV GTS is using the LSA.
Im hoping now chevrolet will slowly move in and replace what will be missing in the form of a camaro

[ProTouring442]

Didn't Ford recently announce they were ending production in Australia as well?

Still, this seems to be a normal sort of thing. In the '80s, manufacturing jobs were leaving the US like mad. Now they are coming back. Maybe it's part of a normal cycle?

[BMR Sales]

Ford & GM announced, Toyota's next. I don't see this as a Cycle as it would kill off any Local Vendors

[rallystyle]

as much as I would like a new ute to show up on our shores this is what gm is becoming


http://youtu.be/Lvl5Gan69Wo