Not the sigh of relief expected for Holden After Ford announced that they would cease all in-continent manufacturing by the end of the next three years, GM now appears to be reaping the somewhat unanticipated repercussions of their arch rival’s decision.
Although Ford is out of the picture in the Australian auto manufacturing scene as of 2016, it appears that the lack of competition for GM’s Holden division may not be the sigh of relief that the manufacturer needed. After Ford announced that they would cease all in-continent manufacturing by the end of the next three years, GM now appears to be reaping the somewhat unanticipated repercussions of their arch rival’s decision.
For starters, Ford’s announcement will definitely be stealing the bulk of media attention away from GM for the foreseeable future- attention which would have otherwise benefitted the launch of GM’s new VF Commodore lineup. In addition to being bumped from center stage, there’s still the unfortunate reality that the same high costs of assembly being attributed to Ford’s decision to close up shop in Australia still apply to GM’s Holden division. Add to this the wild card effect of the two companies’ shared supplier base, and you’ve got quite the situation- as far as the future of the Holden division goes.
However, the automaker isn’t just waiting around to see how this will play out, rather, in an official statement credited to Holden chairman Mike Devereux, Holden is working both sides of the political aisle to secure government goodwill and a better idea of the current challenge’s they’re facing. This appears to be yielding positive results at the moment, as the 10-year production plan that Holden has secured with the Australian government will see the billion-dollar investment used, at least in part, to produce a pair of new global vehicles.
Although long-term viability still remains in question, it appears as if for the time being Holden may be (over want of a better word), holding on.