Leslie Massey
Holden was a source of Australian national pride for decades, producing cars designed and engineered by Australians for Australians. Holden was the first company to assemble car bodies for Ford in Australia and by 1924 was the exclusive supplier in Australia of car bodies for US-based General Motors. The company dominated the Australian car market in the 1950s and continued its ascendancy throughout the 1950s and 60s, introducing many new models. However, Holden ceased manufacturing vehicles in Australia with the closure of the Elizabeth plant on 20 October 2017.
| Characteristics | Values |
|---|---|
| Date Holden stopped making cars in Australia | 20 October 2017 |
| Date Holden brand was retired | 2021 |
| Number of Holden workers in Adelaide who lost their jobs | 805 |
| Number of former Holden dealers that became Holden Certified Service Outlets | 185 |
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What You'll Learn
- Holden's closure impacted its workers, with one-third struggling to find work
- The Australian government tried to revive the automotive industry in the 1980s
- Holden's failure to adapt to market demands and competition
- Holden's financial losses and negotiations to reduce employee wages
- Holden's final locally-made model, the Holden Commodore VF SS V
Holden's closure impacted its workers, with one-third struggling to find work
Holden's decision to exit the "highly fragmented right-hand-drive market" and retire the Holden brand by 2021 had a significant impact on its workers. The closure of Holden's manufacturing plants in Melbourne and Adelaide resulted in job losses for hundreds of employees, with 805 workers in Adelaide alone losing their jobs when the final car came off the line in October 2017.
The impact of the closure was far-reaching, with one-third of former employees struggling to find work in the months and years that followed. Flinders University academic Gemma Beale researched the closure's impact on Holden workers, finding high incidences of depression and other mental health issues. Dr Beale highlighted the need for long-term holistic support programs to address the challenges faced by former Holden employees, as many support programs ended after just one year.
The closure of Holden's Elizabeth plant in Adelaide resulted in 950 staff losing their jobs, and while more than 80% of former Holden workers have found new employment, some have struggled to adjust. The comparatively young age of Holden's workforce and the presence of diverse skills were seen as advantages in the transition process. However, the loss of such a significant employer in the region had a profound impact, with Professor Beer noting that the closure affected not only the workers but also their families and communities.
The end of Holden's car manufacturing in Australia had a lasting effect on its workers, with many experiencing a sense of grief and loss comparable to the passing of a second family. The closure also highlighted the importance of secure and ongoing work, as the transition programs were limited by the availability of jobs, particularly in the automotive industry and related supply chains. Holden's departure from the Australian market left a notable void, impacting not just its employees but also the broader community that had come to associate the brand with a sense of success and identity.
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The Australian government tried to revive the automotive industry in the 1980s
Australia's automotive industry began to decline in the 1970s, with the local industry losing competitiveness. The Whitlam government's decision to strengthen the Australian currency and reduce tariffs and trade barriers hurt the automotive industry, which was slow to adapt to these changes.
By the 1980s, the Australian automotive industry was in need of revival. The government attempted to stimulate the industry through the Automotive Competitive and Investment Scheme (ACIS), which provided $500 million AUD in annual support to automakers from 2000 to 2011, costing a total of $7 billion AUD. However, despite these efforts, the industry continued to struggle, with foreign companies losing interest in the Australian market due to the removal of trade protections.
The Australian automotive industry faced further challenges in the 1990s and 2000s, with domestic makers' market share shrinking despite stable assembly operations. Holden, one of Australia's leading car manufacturers, struggled to adapt to changing market demands and tastes, with their later models criticised for their use of budget materials and lack of standard options.
In 2013, Holden announced the closure of its Australian manufacturing plants in Melbourne and Adelaide, with the final car rolling off the production line in October 2017. This marked the end of an era for the Australian automotive industry, with thousands of jobs lost and former employees facing challenges finding secure employment.
The Australian government's efforts to revive the automotive industry in the 1980s through financial support and policy changes had only a temporary impact, as the industry continued to face challenges and eventually ceased mass vehicle assembly in the country.
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Holden's failure to adapt to market demands and competition
Additionally, Holden's decision-making regarding their vehicle offerings contributed to their struggles. The company's latest models, such as the Arcadia, Equinox, and the newest Commodore, were deemed too conservative and failed to excite consumers. Holden's marketing strategies, such as promoting expensive HSVs to those who could barely afford them, also raised questions from a business perspective. The company's inability to capitalise on the resources and investments of its parent company, GM, particularly in the development of electric vehicles, was another missed opportunity. Holden's failure to innovate and adapt to the changing market demands left them vulnerable in an increasingly competitive automotive industry.
The high Australian dollar, high production costs, and a small domestic market further exacerbated Holden's challenges. With a strong Australian dollar, car manufacturers faced difficulties in justifying their operations in the country, especially without sufficient subsidies. Holden's production costs were high, and their small domestic market made it challenging to recoup these costs, especially when compared to the efficiency of foreign competitors.
Furthermore, Holden's inability to create vehicles specific to the right-hand-drive markets of Thailand, Australia, and New Zealand, which were among the company's top priorities, became a significant challenge. The cost of designing and manufacturing vehicles for these markets became too high, impacting Holden's profitability.
In conclusion, Holden's failure to adapt to market demands and competition was a result of a combination of factors, including a lack of innovation, high production costs, and an inability to anticipate and respond to shifting consumer preferences. Holden's demise serves as a cautionary tale for automakers underestimating consumer demands and failing to stay agile in a dynamic market environment.
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Holden's financial losses and negotiations to reduce employee wages
Holden, one of Australia's leading car manufacturers, announced the end of its operations in the country in 2017, with the final car rolling off the production line in October of that year. This decision had a significant impact on Holden's employees, many of whom faced job losses, retirement, and insecure employment.
In the years leading up to its closure, Holden struggled financially and sought to cut costs. In 2012, it was reported that Holden received over AUD 150 million per year in subsidies from the Australian government, with the subsidy in 2007 being higher than the company's capital investment for the same period. Despite this financial support, Holden only turned a profit in 2010 and 2011, with losses of AUD 70.2 million and AUD 210.6 million in 2008 and 2009, respectively.
In 2013, Holden initiated negotiations to reduce employee wages by up to AUD 200 per week, following the announcement of 400 job cuts and a reduction in assembly line capacity. The company was losing money on every vehicle it produced, and the wage negotiations were an attempt to reduce costs and remain viable. Holden's employees, however, resisted these wage cuts, and in 2013, 1,700 workers at the Elizabeth plant voted to accept a three-year wage freeze instead, in the hope of keeping the production line open beyond 2016.
Despite these efforts, Holden was unable to secure the necessary funding from the government, and in December 2013, General Motors announced the end of Holden's manufacturing operations in Australia. This decision resulted in significant job losses, with 2,900 jobs affected over four years. The closure of Holden's manufacturing plants in Melbourne and Adelaide had a profound impact on the employees, with many experiencing emotions similar to grieving the loss of a second family.
The end of Holden's car manufacturing in Australia was a significant event, marking the closure of one of the country's leading carmakers and impacting the lives of its employees, many of whom faced challenges finding secure employment.
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Holden's final locally-made model, the Holden Commodore VF SS V
Holden, one of Australia's leading car manufacturers, announced the end of its operations in the country in 2013, with the final car rolling off the production line in October 2017. This marked the closure of Holden's manufacturing plants in Melbourne and Adelaide and the end of an era for the iconic Australian car brand.
The Holden Commodore VF SS V was the final locally-made model, and it holds a special place in the history of the Australian automotive industry. The Commodore nameplate was introduced in 1978, and the VF series was the fifteenth and final iteration of the Commodore manufactured in Australia. The VF Commodore was launched during a downward trend in large car sales in Australia, but it still managed to achieve strong sales figures.
The Holden Commodore VF SS V offered a range of features that appealed to car enthusiasts. It was known for its powerful 6.2-litre 304 kW (408 hp) and 570 N⋅m (420 lb⋅ft) LS3 V8 engine, which provided enhanced performance. Holden also introduced a Bimodal exhaust as standard equipment on the SS, SS V, and Redline models, further enhancing the driving experience. The VF series was also the first Commodore to utilise an electric power steering system, improving fuel economy compared to previous hydraulic systems.
The exterior styling of the Holden Commodore VF SS V was also notable. The front bumper and running lights were restyled, giving the car a modern and aggressive look. Additionally, all wagon models received new LED taillights, adding to the overall appeal of the vehicle. The interior of the VF featured improvements as well, with the SV6 models offering HUD/GPS and new wheels, while the SS models gained HUD/GPS and 19-inch wheels.
The Holden Commodore VF SS V played a significant role in Holden's history and the Australian automotive landscape. Its production run from June 2013 to October 2017 marked the end of locally-made Holden vehicles, and it remains a sought-after model among car enthusiasts even today.
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Frequently asked questions
Holden ceased manufacturing vehicles in Australia on 20 October 2017, with the closure of the Elizabeth plant.
The last Aussie-built Holden was a red VF Commodore SS-V Redline.
The closure of Holden's manufacturing plants in Melbourne and Adelaide impacted the lives of many Holden workers. One-third of former employees retired, one-third struggled to find work, and the rest found new jobs, often involving insecure employment.
Holden became an importer of rebadged cars from various GM subsidiaries located in the United States, Canada, Germany, Thailand, and South Korea. While Holden ceased to exist in Australia as an entity from which to buy a car at the end of 2020, GM has promised to provide servicing and spare parts for at least 10 years in Australia and New Zealand.
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