Lexi Webster
Holden is an Australian car manufacturer that produced some of the country's best-loved vehicles. The company was established in 1926 as General Motors (Australia) Limited, and in 1948, it launched the Australia's own car, the General Motors Holden 48-215, often referred to as the Holden FX. The Holden was the first full-scale automobile produced exclusively for Australia, and it became an instant success, being specifically designed for Australia's unique, rough roads. Holden continued to dominate the Australian car market in the 1950s and 1960s, introducing many new models. However, in the 1980s, the removal of government tariffs on imported cars increased foreign competition, leading Holden to produce fewer models in Australia and rebadge imported GM cars as Holdens. Despite a financial improvement in the 1990s, Holden eventually pulled out of Australia entirely by 2017.
| Characteristics | Values |
|---|---|
| First full-scale production | Holden was the first full-scale automobile produced exclusively for Australia. |
| Ownership | Holden is owned by General Motors, an American company. |
| Production | Holden cars were produced in all Australian states except territories and Tasmania. |
| Manufacturing plants | Holden had manufacturing plants in Adelaide, Acacia Ridge, Queensland, Woodville, Cheltenham, Newstead, Marrickville, Melbourne, Birkenhead, and Cottesloe. |
| Popularity | Holden was extremely popular in Australia, with its cars becoming iconic and instantly successful. |
| Sales | Holden's sales dropped below 100,000 in 2016 and further declined in subsequent years. |
| Government support | The Australian government provided grants and subsidies to Holden for production and infrastructure development. |
| Withdrawal | Holden pulled out of Australia by 2017, ending its Australian production line. |
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What You'll Learn
Holden's Australian manufacturing history
Holden, the Australian subsidiary of General Motors, has had a long history of manufacturing cars in Australia. The company was established in the country in 1926, with assembly plants in various states, and began manufacturing the first full-scale produced automobile exclusive to Australia in 1948--the Holden 48-215, also known as the FX or the ute. The Holden was designed to navigate Australia's unique, rough roads, and it quickly became an iconic symbol of the country.
Holden continued to introduce new models throughout the 1950s and 1960s, such as the EJ series in 1962, the EH update in 1963, and the HD series in 1965. The company also expanded its exports, selling cars to Africa, the Middle East, Southeast Asia, the Pacific Islands, and the Caribbean. In 1966, Holden introduced the HR model, which included new front and rear styling and higher-capacity engines. Significantly, the HR model also came with standard front seat belts, making Holden the first Australian automaker to provide this safety feature across all models.
However, in the 1980s, the removal of government tariffs on imported cars increased foreign competition. Holden responded by reducing the number of models manufactured in Australia and "rebadging" imported GM cars as Holdens. This led to a loss of identity for the brand, and by the new century, Holdens were no longer distinguishable as Australian-made vehicles.
Despite financial improvements in the 1990s, Holden eventually pulled out of Australia entirely by 2017, ending its Australian manufacturing history. The decision was influenced by the Australian government's refusal to subsidize the car industry, making it unprofitable for Holden and other manufacturers to continue operations in the country.
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The role of governments
Holden cars were once a symbol of Australia, dominating the Australian car market in the 1950s. The Holden was the first full-scale automobile produced exclusively for Australia, designed to navigate the country's unique, rough roads. Over time, Holden expanded its exports to Africa, the Middle East, Southeast Asia, the Pacific Islands, and the Caribbean.
However, Holden's success story in Australia came to an end. Several factors contributed to this, including a decline in sales, failure to adapt to market trends, and the strong Australian dollar. One significant factor was the Australian government's decision to stop subsidising the car industry.
Historically, the Australian government played a passive role in the automotive industry, particularly in recent decades. This policy passivity stands in contrast to other countries, which actively supported their automotive sectors. The Australian government's decision to end subsidies for the car industry is often cited as a critical factor in Holden's departure from Australia. Joe Hockey, the Treasurer in the Abbott government, abruptly refused to continue subsidising the industry. This decision was not based on economic rationale, as for every dollar of subsidy in local car manufacturing, multiple dollars were brought into the economy.
The strong Australian dollar also played a role in the government's decision. With a strong dollar, car manufacturers needed subsidies to continue operations, but economists predicted that the strong dollar would be short-lived. The government's focus shifted to reducing taxes for the wealthy, rather than supporting the car industry. This political decision had significant consequences for the industry and the country's economy.
In conclusion, the Australian government's role in the automotive industry, specifically its decision to end subsidies, was a key factor in Holden's exit from Australia. The government's passive approach to industrial policy in the automotive sector stands in contrast to other countries' active support. The demise of the automotive industry in Australia highlights the impact of unique policy choices and the importance of understanding their potential consequences.
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Foreign competition
Holden, an Australian icon, was first introduced in 1948 as "Australia's car", being the first full-scale-produced automobile exclusive to the country. Holden was an instant success among Australians as it was the first production car built solely for Australia's unique, rough roads.
However, Holden was owned and controlled by an American firm, General Motors (GM). In the 1980s, the removal of government tariffs on imported cars increased foreign competition for Holden. GM responded by producing fewer models in Australia and "rebadging" imported GM cars as Holdens. This led to Holden losing its identity and connection with Australians.
For instance, in 1986, the Commodore VL was powered by a Nissan engine and had a Nissan-built transmission. This decision to opt for a Japanese-made transmission led to the closure of the Woodville, South Australia assembly plant. Additionally, Holden entered an alliance with Toyota in 1989, forming United Australian Automobile Industries (UAAI). As a result, Holden sold rebadged versions of Toyota's Corolla and Camry as the Holden Nova and Apollo, respectively.
By the new century, Holdens were indistinguishable from German Opels and South Korean Daewoos. Holden's decision to end Australian manufacturing further severed its sentimental attachment with Australians. The dilution of cars sold in Australia and the rise of foreign competition made it challenging for Holden to justify manufacturing locally with limited options for export.
In conclusion, while Holden initially dominated the Australian car market, increased foreign competition and changing market dynamics led to a decline in their local manufacturing and a shift towards imported models.
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Sales and exports
Holden dominated the Australian car market in the 1950s, with its cars becoming synonymous with the 'Australian way of life'. The company's sales soared to over 200,000 per year, accounting for nearly 35% of new car sales. Holden's success continued into the 1960s, with its locally produced large six- and eight-cylinder cars remaining Australia's top-selling vehicles despite the arrival of competitors such as the Ford Falcon and Japanese cars. Holden's exports also grew during this time, reaching 17 countries by 1957, including Indonesia, Hong Kong, Singapore, and South Africa.
In the 1970s, Holden continued to produce all of its passenger cars in Australia, and every model was of Australian design. The company maintained its sales leadership in Australia with models such as the Commodore, which became the iconic modern Holden vehicle. During this decade, Holden also exported almost 100,000 Commodores to markets such as New Zealand, Thailand, and Singapore.
In the 1980s, Holden introduced the VL Commodore, which featured a Nissan-built engine and transmission. This decision was necessitated by a legal requirement that all new cars sold in Australia after 1986 had to consume unleaded petrol. However, changing currency exchange rates impacted the cost of the VL. Despite this, Holden continued to increase its Australian market share in the 1990s, exporting significant numbers of cars and locally produced engines.
However, Holden's sales began to decline in the 2010s, dropping below 100,000 in 2016 and falling further in subsequent years. This decline has been attributed to various factors, including the replacement of the Australian-built VFII Commodore with the imported ZB Commodore, and the decision to import all cars under the Holden name instead of manufacturing locally. In 2017, Holden's manufacturing was exported outside of Australia, which further impacted sales as customers were no longer buying Holden because they were Australian-made. Ultimately, Holden shut down as the company could not prioritise the investment required for long-term success.
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The Holden Ute
Holden is a full-sized car produced by the company of the same name across 5 generations from 1948 until 1984. The Holden was introduced to be Australia's car, being the first full-scale production automobile exclusive to the country. The Holden Ute, also known as the Holden Commodore Ute, is a coupe utility built by Holden, the Australian subsidiary of General Motors, from 2000 to 2017.
The first Holden Ute was the Holden 50-2106, based on the Holden 48-215. The Holden Ute name is often used for earlier Holden Utility models (produced from 1951 to 1984) as the word "ute" is a colloquial term commonly used in Australia for a utility vehicle. The second generation 'ute' was a revision of the 50-2106 and was based on the FE to EK Holden and retained the sedan body as a base. The third-generation Holden-based ute was slightly more refined than previous models, however, it still retained the full-length floorpan, although it gained the station wagon's wheelbase.
In 2003, Holden introduced a stretched, crew-cab version of the Ute with four doors and seating for five, called the Holden Crewman. The Holden Ute was produced until 2017, when Holden ended production of the Commodore lineup, which included the utility version.
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Frequently asked questions
No, not all Holden cars are made in Australia. Holden was introduced as Australia's car and was the first full-scale-produced automobile exclusive to the country. However, Holden's Australian identity has become tenuous over the years, with the company rebadging imported GM cars as Holdens and assembling imported CKD kits from overseas General Motors subsidiaries.
Holden, or General Motors Holden, launched its first car in 1948 with the FX 48-215, often referred to as the Holden FX. The model was launched by Ben Chifley, the then Australian Prime Minister, as "Australia's own car".
Holden stopped manufacturing cars in Australia due to a combination of factors, including increased foreign competition, the removal of government subsidies, and a decline in sales. Holden's decision to end Australian manufacturing severed its sentimental connection with the country.
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