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NEWS
Holden dead? Chevrolet leaves Europe
Reports say Holden will exit Australian manufacturing as GM confirms Chevrolet is dead in EuropeIt’s all change in the world of GM and a perfect storm of local and overseas events make Holden’s exit from local manufacturing operations now appear to be a formality.
Mainstream news outlets have reported overnight that Australian federal government ministers believe Holden is set to announce the closure of its Australian manufacturing operations.
At the same time, General Motors has formally announced a timetable for Chevrolet’s exit from Europe as the company seeks to re-engage with Opel in that marketplace. Instead, it will concentrate “where the opportunity for growth is greatest.”
And this week, Australia confirmed the establishment of a free-trade agreement with South Korea, Holden and GM’s manufacturing location of choice in this part of the world.
So are we adding up two and two and getting five? Alas no...
Prominent Abbott government minister Christopher Pyne told motoring.com.au on November 8 that he believed Holden had already made its decision.
In a brief discussion at Melbourne airport, the minister told motoring.com.au that Holden repeatedly had changed its bargaining position and demands in what he believed were negotiations that were destined to fail.
He stated the announcement of the departure of Holden boss Mike Devereux for a new position in the company’s Asian operations was telling.
Devereux (pictured) will still front the government’s Productivity Commission auto industry enquiry next Tuesday, however, this appearance now appears to be not much more than window dressing.
Although Holden spokespersons have repeatedly stated on the record they will not comment on speculation, last night motoring.com.au sources confirmed Holden will exit local manufacturing. The timetable will be similar to Ford Australia’s October 2016 cessation.
This week it has been variously claimed that the manufacturing closure announcement, originally planned to take place ahead of the Elizabeth plant’s Christmas closure, had been delayed until the New Year.
The speculation that Holden’s announcement would take place this week is interesting given the timing of GM’s European operations announcement which kills the Chevrolet nameplate in that arena and re-engages Opel (and Vauxhall) as its brand(s) of choice.
“Beginning in 2016, GM will compete in Europe’s volume markets under its respected Opel and Vauxhall brands. The company’s Chevrolet brand will no longer have a mainstream presence in Western and Eastern Europe, largely due to a challenging business model and the difficult economic situation in Europe,” GM announced overnight.
“Chevrolet, the fourth-largest global automotive brand, will instead tailor its presence to offering select iconic vehicles – such as the Corvette – in Western and Eastern Europe, and will continue to have a broad presence in Russia,” it continued.
GM will also re-focus on luxury efforts in Europe behind Cadillac.
“Europe is a key region for GM that will benefit from a stronger Opel and Vauxhall and further emphasis on Cadillac,” said GM Chairman and CEO, Dan Akerson.
“For Chevrolet, it will allow us to focus our investments where the opportunity for growth is greatest,” he stated.
GM’s press release continues: “The majority of the Chevrolet portfolio sold in Western and Eastern Europe is produced in South Korea. As a result, GM will increase its focus on driving profitability, managing costs and maximizing sales opportunities in its Korean operations as the company looks for new ways to improve business results in the fast-changing and highly competitive global business environment.”
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Written byMike Sinclair
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