Holden's demise: Why Australia's once-favourite car manufacturer died (2024)

Holden is dead, and in a few decades so too will be the motorists who can remember a time where every second driveway had a locally-built car sitting in it.

From family car trips in a rusting 1970s Kingswood station wagon, to teenage excursions in a second-hand Commodore, the history of Holden is indelibly ingrained in Australian history.

But all the nostalgia in the world was not enough to save Holden from the bold financial gamble it made after the Global Financial Crisis: pouring all of its resources into creating large sedans.

Holden's demise: Why Australia's once-favourite car manufacturer died (1)

As the car-buying public shifted towards SUVs and dual-cab utes for family duties – or micro Japanese city cars for urban trips – Holden persisted with its large, comfortable sedan-based Commodore.

The last Australian iteration, the VF Commodore, was a beautiful car: with a powerful LS3 engine, bi-modal exhaust and class-leading interior, it was truly the best of Australian engineering.

But other than the dyed-in-the-wool enthusiasts, it wasn't what the market wanted.

Holden's demise: Why Australia's once-favourite car manufacturer died (2)

Mothers of school-aged children, who so often control the family budget, wanted ride height as it gave a greater sense of safety – so much so that SUV sales soared through the roof.

Tradies, once the backbone of Holden's sales thanks to a long history of performance utes and wagons, turned to hulking dual-cab utes.

The truck-like Toyota HiLux has been the best-selling new car in the country for the last decade.

Holden's demise: Why Australia's once-favourite car manufacturer died (3)

In second place, it's Ford's Ranger, also a dual-cab utility.

No large sedan from any manufacturer sits within Australia's top-selling new vehicles.

When General Motors decided that Holden could no longer build vehicles in Australia due to the high cost of labour, the death knell on Holden's future was sounded.

Holden's demise: Why Australia's once-favourite car manufacturer died (4)

Years earlier, after the GFC of 2007-2008, the Federal Government was desperate to keep the lion roaring.

In the 12 years since 2000, the government gave Holden $2.17 billion in Federal subsidies as it scrambled to keep Australian car workers in a job.

But it wasn't enough.

In 2017, at Holden's Elizabeth plant in Adelaide, the last Australian-made VF Commodore rolled off the line.

To replace it, Holden imported a re-badged Opel Insignia from Germany and called it a Commodore – and the Australian public appeared to hate it.

Holden's demise: Why Australia's once-favourite car manufacturer died (5)

In 2019, Holden sold just 43,176 new vehicles, the lowest since 1954. In 2019, Toyota sold more than 47,000 HiLuxs – more than Holden's entire line up with just one model.

In 1998, at the peak of Holden's power, Australians bought 94,682 new Commodores, even though the average yearly wage was just over $42,000.

Many people will take cheap shots on Holden's demise – commenting on squeaky dashboards, the brand's affinity with "bogan" consumers and its failure to cash in on the SUV boom – but the fact is its parent company General Motors is the one calling the shots.

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For GM, Holden is not the centre of its world.

Currently, GM makes right hand drive vehicles for Thailand, Japan, Australia and New Zealand.

It is not competitive in these markets, and therefore is cutting one part of the Australian dream: to have a house in the suburbs with a backyard and a Holden wagon in the driveway.

Holden's demise: Why Australia's once-favourite car manufacturer died (2024)

FAQs

Holden's demise: Why Australia's once-favourite car manufacturer died? ›

When General Motors decided that Holden

Holden
Holden was founded in 1856 as a saddlery manufacturer in South Australia. In 1898, it moved into the automotive field. It became a subsidiary of the United States–based General Motors (GM) in 1931, when the company was renamed General Motors-Holden's Ltd.
https://en.wikipedia.org › wiki › Holden
could no longer build vehicles in Australia due to the high cost of labour, the death knell on Holden's future was sounded.

Why did Holden stop manufacturing in Australia? ›

Holden blamed a strong Australian currency, high manufacturing costs and a small domestic market among the reasons for exit of local manufacturing. This led to the announcement, on 11 December 2013, that Holden would cease vehicle and engine production by the end of 2017.

What happened to the Holden car company? ›

Holden, the Australian car manufacturer, ceased production and left the American market in 2009 due to a combination of factors such as high production costs, unfavorable exchange rates, declining sales, and the global financial crisis.

Why did Holden pull out of Australia? ›

There are various reasons for the brand's demise. Chief among them were the withdrawal of federal government subsidies to local manufacturers and the rise of the SUV. GM pulled out of all right-hand drive markets last year, so Holden was on borrowed time, regardless.

What was the downfall of Holden? ›

When GM decided Holden couldn't afford to keep making cars in Australia, the death knell was sounded for the Australian automaker. Holden was discontinued because GM stopped putting a premium on right-hand-drive markets.

When did Holden stop manufacturing in Australia? ›

After announcing the closure plans in 2013, the final car came off the line in Adelaide on October 20, 2017. A report for the federal government found 805 Holden workers in Adelaide lost their jobs that day and the shutdown came in the same month Toyota ceased production in Melbourne.

Why did Holden stop making cars? ›

The decision to kill Holden was strictly financial, according to a statement by the company. From the release: GM has taken this difficult decision after an exhaustive analysis of the investment required for Holden to be competitive for the long term in Australia's and New Zealand's new car markets.

Does Holden still make cars in Australia? ›

Holden, formerly known as General Motors-Holden, was an Australian subsidiary company of General Motors It was an Australian automobile importer, and exporter which sold cars under its own marque in Australia. The 164-year-old company ceased trading at the end of 2020.

What car is replacing Holden? ›

Holden got an early fairytale with Chaz Mostert leading a Walkinshaw Andretti United one-two on Saturday. The Commodore will be replaced by the Chevrolet Camaro when the Gen3 era commences in 2023.

Can you still buy a Holden? ›

At the end of 2013, Holden announced that it would be halting production in Australia, and importing vehicles from its overseas plants. By 2021, the Holden brand was discontinued entirely. But that doesn't mean that Holdens are not a good choice to buy when it comes to purchasing a used car.

When did Toyota stop making cars in Australia? ›

In April 2012, Toyota retrenched 350 workers. Toyota received criticism for the manner in which the process was carried out; for example, deploying security guards to escort sacked staff. The plant closed on 3 October 2017, marking the end of Toyota's automobile manufacturing in Australia.

Why is Holden important to Australia? ›

Holden was a pioneer of the nation's automobile industry and contributed significantly to the increasing prosperity of Australians in the postwar years. A Holden was the first car owned by many Australians.

Why is Holden so messed up? ›

Originally Answered: In the book “Catcher in the Rye” what's wrong with Holden Caulfield? Holden Caulfield suffers from post traumatic stress disorder. The fictional cause is the death of his beloved little brother, Allie.

What is Holden's biggest issue? ›

Major ConflictThe major conflict is within Holden's psyche. Part of him wants to connect with other people on an adult level (and, more specifically, to have a sexual encounter), while part of him wants to reject the adult world as “phony,” and to retreat into his own memories of childhood.

What is the death of Holden in Australia? ›

The Death of Holden is an in-depth reportage into the closure of Australian manufacturing operations by Holden. The Death of Holden investigates how such a popular car, often considered a seminal Australian brand, could not sustain local manufacturing operations.

What happened to the last Holden made in Australia? ›

The 'last' Holden Commodore manufactured in Australia sells for $750,000 at auction. A bidder has paid $750,000 for "the last car ever produced at Holden Australia" — even though General Motors says "absolutely the last Holden" is on display at the National Motor Museum in Birdwood, South Australia.

What will replace Holden in Australia? ›

Holden got an early fairytale with Chaz Mostert leading a Walkinshaw Andretti United one-two on Saturday. The Commodore will be replaced by the Chevrolet Camaro when the Gen3 era commences in 2023.

What was the last Holden made in Australia? ›

The VF Series II SSV Redline sedan was given the final vehicle serial number and was the last to travel through the body and paint shops at the company's Elizabeth plant, which closed in 2017.

What was the last Australian built Holden? ›

Now, in a statement to carsales, GM has confirmed the final Holden ever produced is the same Red Hot SS-V Redline with black roof that was presented with a 'Last Car' sign in a factory ceremony on October 20, and that it remains on display at Birdwood.

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