April 28, 2009

Horse 985 - The End... of Holden?

http://business.smh.com.au/business/holden-hit-by-gms-cutbacks-20090428-akva.html
Holden Australia has been dealt a blow with parent General Motors confirming that it will scrap the Pontiac brand including the Pontiac G8 which is built in the Elizabeth plant near Adelaide.
Sold as the VE Commodore in Australia, Holden arm had planned to export 30,000 of the high performance cars to the US.

The move, part of sweeping cuts contained in GM's second viability plan, will mean the loss of nearly $1 billion in exports for Holden, which had invested $77 million to gear up for the shipments.

That's the end of the line for Holden really isn't it? With virtually all of their export markets gone; with GM teetering closer and closer to the edge of oblivion, I'm wondering just how long it will be before they completely abandon Australia altogether.

Admittedly I'm not actually surprised that GM would look out for its own patch before everyone else's but to be honest I fear generally for the fate of Holden and car manufacturing in Australia. How interesting that I foresaw something to this effect two and a half years ago:
http://rollo75.blogspot.com/2006/07/horse-593-holdens-big-mistake.html
Holden motor company of Australia may have just accidentally taken the first step to committing automotive suicide.

If Holden goes, then all of the related minor parts industries suffer. If they lose their biggest customers, then their profits dry up and ultimately they die as well. Overall the news coming out of America this morning is grim.

Winston Churchill once said: "Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning". That was then, this unfortunately actually is the end, or at very least the beginning of the end.

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