Why Did Holden Automotive Shut Down?

With the closure of the Holden factory in Australia, another automotive brand has permanently joined history. In the last decade, some automakers in the US and Europe have shut down, but why did only the Australian automaker face such a fate? Holden was a subsidiary of General Motors, based in Australia, and was established in 1856 for making horse saddles. Founded by James Alexander Holden, the company entered a new business in 1923, producing parts for General Motors vehicles in the US. At that time, it produced twelve thousand parts annually for General Motors and later began assembling Ford vehicles in Australia. Body and chassis manufacturing were other activities of Holden before it became a car manufacturer. The company also assembled Chevrolet vehicles for a period before World War II and, after the war, assembled brands like Buick, Pontiac, Vauxhall, and Chevrolet. In the 1950s, with the help of General Motors, the company began producing products under the Holden brand, thus becoming the first Australian automotive brand to grow in that decade. However, this Australian automaker remained under the shadow of General Motors in later years, using various General Motors vehicle platforms in many of its models. But why did Holden say goodbye to production? General Motors has been downsizing and restructuring for several years. After the economic crisis in the United States, General Motors has been trying to shrink and eliminate loss-making companies to regain its strength in the automotive industry. One of the brands General Motors initially bid farewell to was Pontiac. After Pontiac, it sold its European subsidiaries, Vauxhall and Opel, to the Peugeot-Citroën group, and now Holden has joined Pontiac in memory. The last product produced by Holden was the six-cylinder Holden VF Commodore, manufactured in the suburbs of Adelaide. The power of this vehicle is provided by a 6.2-liter V8 engine, the same engine installed under the hood of the Chevrolet SS, producing 455 horsepower. With Holden's closure, about 2,500 people have been directly unemployed, and some parts companies in Australia and those affiliated with this automaker are also at risk of closure. However, it is likely that the laid-off Holden workers will be utilized in the production of military equipment or household goods. One of the main reasons for the cessation of Holden's products was the changing preferences of Australian consumers. Australians now need smaller, more fuel-efficient cars in cities and require four-wheel drives or pickups for agricultural work and suburban areas, which Japanese companies supply at better prices and quality, leading to a daily decrease in Holden customers. Another reason Holden faced losses was the high wages in Australia compared to Asia, which allowed Asian cars to be more competitive, making production in a competitive environment unprofitable for Holden. Additionally, Chinese companies like Great Wall, Chery, Foton, and Geely have recently entered the Australian market, which could make things even harder for Japanese automakers in the future. All these factors led to the end of Holden, and while many Australians have memories with this brand, it will forever join history after producing over 7,687,000 units.