Holden announces early end to Cruze production

Holden has finally made it official: assembly of the Cruze small car at the company's Elizabeth manufacturing plant will conclude in October this year.

In a press release issued by the company this afternoon, Holden MD Mark Bernhard said that the "cessation of Cruze manufacturing this year was always a key part of Holden's plan to gradually wind down manufacturing and ensure our people and the supply base have the maximum amount of time possible to transition", although Holden has until now been discreet about its plans for Cruze and its small-car portfolio generally.

"I want to acknowledge first and foremost the impact the end of local manufacturing has on people, and their families, across the country and throughout the industry," Bernhard also said.

"Our people remain our number one priority. As I've said since the first day I took up this role last year, my most important job is to support our people and I want to reaffirm that commitment to helping them wherever we can. Our focus is to manage the gradual wind-down of manufacturing between now and the end of 2017 in a way that treats our employees with respect and dignity as they leave the company and gives them the best chance at gaining future employment.

"In the coming months, we will be helping many in our manufacturing workforce transition to new employment, wherever possible. Holden is committed to supporting staff through this transition process, and all our people have access to career counselling, training and job-search assistance.

"October will bring to an end five and half years of Cruze production that saw nearly 125,000 Cruze models built and sold in Australia. I want to thank our people for the part they have played in Holden's history, they should be extremely proud of their contribution to our industry. At its peak, 33,000 Cruze vehicles were sold annually in the most hotly contested segment of one of the most competitive car markets in the world.

"The best way we can honour our people and our heritage is to build a bright and successful future for Holden and that's exactly what we are doing. Through the launch of 24 new products by 2020, a laser-like focus on customer experience and a rejuvenation of the Holden brand we are taking our company forward."

The manufacturer hasn't revealed why Cruze production is winding up so soon, although the new emissions standard – ADR 79/04 – no doubt has had some influence on the decision, and the cost of building the car and turning a profit, versus the relative profitability of the Commodore, would be another reason.

The Commodore will remain in production up to "the end of 2017", with Holden granted a short-term exemption from Euro 5 emissions compliance, which might be enough time remaining to build up a dealer inventory of the large rear-wheel drive passenger car to last the company well into 2018. At that time, it's believed the current VF Series II model will be succeeded by an all-new Commodore built by Opel on a front-wheel drive platform shared with Chevrolet's new-generation Malibu.

Today's announcement made no mention of how many staff would be shed – if any – as a direct consequence of the end of Cruze production. Holden remains committed to a soft landing for its staff at the Elizabeth plant, post production. The company has contributed $15 million to the Federal Government’s Growth Fund, for the support of manufacturing and engineering staff left jobless. In addition, the company is offering its employees "a suite of transition services and up to $3000 in approved training" to help them resettle.