Holden's Future Remains in Doubt

Rumor / Comments

Production may cease after 2016.

Ford Australia will be gone in just a couple of years, and it appears that GM's Holden division may have the same fate. Although GM previously said that it intends to keep Holden, various economic factors may change that decision. Reports coming in from Australian publications claim that consultations are currently taking place between GM and the government from Down Under, but things aren't looking too promising. Holden has been losing money and without financial assistance from the Australian government, it likely won't survive.

The reason being is that GM, like Ford, is trying to globalize its model lineup, and while Holden does make the ever wonderful Commodore sedan, wagon and ute, they don't churn enough of a profit. Australians, in recent times, have also been buying smaller front-wheel-drive cars, like the Cruze, for the same reason everyone else is: improved fuel economy. For now, no official decision will be made before the Christmas holidays, but don't be surprised to see an official announcement at the turn of the year. All told, some 50,000 people work at Holden, and as much as both GM and the government don't want those jobs lost, the economic situation is not in their favor.

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