GWM poised to buy former Holden proving ground

GWM is prepared to preserve a piece of Australian automotive history, with negotiations underway to acquire the former Holden proving ground in Lang Lang Victoria.

Following the closure of all operations and the end of the Lion in Australia in 2020, Holden sold its iconic testing and development site to Vietnamese car brand Vinfast, but the unforeseeable challenges posed by the Covid 19 pandemic left the marque regretting its purchase and looking for a buyer.

However, GWM has emerged as a prospective buyer as it ramps up its local development activities led by former Holden chassis engineer Rob Trubiani; the purchasing of the proving ground would add to an already formidable Australian asset set.

Speaking to media this week, GWM chief technology officer Nicole Wu said not only was the company considering buying the site, it was already talking about a cash figure.

“To be honest, we are negotiating about the price,” she said. “It's not expensive compared with what we have in China and in other countries.”

GWM isn’t desperate for another testing facility, with numerous proving grounds dotted about the globe including China, the Middle East and Siberia, but an Australian site would be a valuable addition given its laser focus on the local market and some ambitious sales growth.

According to Wu, an investment to buy the facility would reduce long-term overheads and maximise the potential in local engineering expertise, much of which evaporated with the closure of Holden manufacturing and development.

“There are two points to use (buy) it: the first thing you are going to have is a rental-free ground, and second, you have the talent who knows how to use the proving ground and we have Rob Trubiani and we are lucky to have him. I think he is a legend.”

Exactly what price is being discussed has not been divulged but the current owners paid $36.3 million in 2020 and have been inviting ‘expressions of interest’ for purchase since 2021 – just 12 months after acquiring the site.

A handful of enquiries have so far failed to result in a sale, and the owners may be considering offering a discount to the first serious buyer – which could be a well-funded Chinese marque.

Either way, GWM understands the value of making the proving ground its own. Among other benefits, it would prevent rivals using the site a similar advantage and producing cars for Australian customers which feel as though they have been made in Australia.

“The hard part to know is what is the Aussie requirement when tuning our vehicles and making them even better,” Wu said.

“Yes, we are considering to purchase this ground sincerely and there is need to consider it the business.”

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