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dpa
Canberra/Bangkok
US manufacturer General Motors (GM) announced a large-scale withdrawal from markets in Thailand, Australia and New Zealand on Monday, prompting hundreds of job losses, the sale of a factory and the end of an Australian car brand.
GM said it was selling its Thai production plant and ending Chevrolet sales in the country, while also halting production of cars from the 160-year-old Holden brand in Australia and New Zealand.
GM said on Monday it has agreed to sell its production plant in the southern province of Rayong, around 150 kilometres south of Bangkok, to Chinese car-making company Great Wall Motors and expects to complete the sale by the end of the year, when it will also stop selling Chevrolet vehicles in the Thai market.
Great Wall Motors global strategy vice president Liu Xiangshang said the company will expand its operations in Southeast Asia and use its newly acquired Thai factory as a production base to manufacture and export its products to other countries in the region, including Australia.
“The car market in Southeast Asia is developing and has a lot of opportunities and potential to grow,” Xiangshand said.
Andy Dunstan, GM’s president of strategic markets, alliances and distributors, said in a statement the company’s decisions to withdraw from Thailand were based on a number of economic factors.
“The decision to stop producing and selling cars in Thailand is in accordance with our global business strategy and the company’s financial scope,” Dunstan said.
General Motor’s production plant in Thailand began operating in 2000 and has produced over 1.4 million vehicles, according to the
company.
In Australia, GM had already ended manufacturing operations of the local, 160-year-old Holden brand in South Australia in 2017 after 69 years in operation, but the brand was still selling in the two countries by importing cars from abroad.
“The Holden brand will be retired from sales in Australia and New Zealand and local design and engineering operations will wind down by 2021,” parent company General Motors said in a statement on Monday.
The company had “taken the difficult decision” based on “global priorities,” Julian Blissett, GM’s International Operations senior vice president, said in the statement. Holden’s interim Chairman and Managing Director Kristian Aquilina said the decision was “agonising.”
“We’ve tried to find a way to defy gravity... I’m personally convinced GM tried everything to keep Holden going,” he said. “We’re heartbroken.” Australian Prime Minister Scott Morrison said he was not happy about GM’s decision to quit the market Down Under.
“I’m disappointed, but not surprised, but I am angry like I think many Australians would be,” Morrison told reporters in Melbourne.
“Australian taxpayers put billions into this, into this multinational company and they let the brand just wither away on their watch. And now they’re leaving it behind.”
He said the Australian government had provided more than two billion dollars directly to GM for the Holden operations over the years. Even competitor Ford said it was sad to see GM leave Australia.
“All of us here at Ford Australia is saddened to hear the news that Holden will cease operations,” Ford Australia said on Twitter.
“Holden is an iconic brand that holds a special place in the heart of many Australians, and has done so much to shape the Australian automotive industry and the country.”
The move will cut about 600 jobs across Australia and New Zealand, as well as the closure of many Holden dealerships, while about 200 jobs will be retained, mostly in aftersales and spare parts.
GM said Holden employees will be provided with “separation packages and employment transition support.” GM also said the company will honour all warranties and provide service and spare parts for Holden vehicles for at least 10 years.
Holden began in 1856 as a South Australian saddlery business and started manufacturing vehicle bodies in 1917. General Motors bought the company in 1931.
Australian car manufacturing has seen a steep decline in recent years. Toyota, which began manufacturing in Melbourne in 1963, shut down its Australia production in 2017, while Ford ceased production after 91 years in 2016. Australian domestic car market fell by about eight percent last year, while Holden sales went down by almost 29 percent.
Canberra/Bangkok
US manufacturer General Motors (GM) announced a large-scale withdrawal from markets in Thailand, Australia and New Zealand on Monday, prompting hundreds of job losses, the sale of a factory and the end of an Australian car brand.
GM said it was selling its Thai production plant and ending Chevrolet sales in the country, while also halting production of cars from the 160-year-old Holden brand in Australia and New Zealand.
GM said on Monday it has agreed to sell its production plant in the southern province of Rayong, around 150 kilometres south of Bangkok, to Chinese car-making company Great Wall Motors and expects to complete the sale by the end of the year, when it will also stop selling Chevrolet vehicles in the Thai market.
Great Wall Motors global strategy vice president Liu Xiangshang said the company will expand its operations in Southeast Asia and use its newly acquired Thai factory as a production base to manufacture and export its products to other countries in the region, including Australia.
“The car market in Southeast Asia is developing and has a lot of opportunities and potential to grow,” Xiangshand said.
Andy Dunstan, GM’s president of strategic markets, alliances and distributors, said in a statement the company’s decisions to withdraw from Thailand were based on a number of economic factors.
“The decision to stop producing and selling cars in Thailand is in accordance with our global business strategy and the company’s financial scope,” Dunstan said.
General Motor’s production plant in Thailand began operating in 2000 and has produced over 1.4 million vehicles, according to the
company.
In Australia, GM had already ended manufacturing operations of the local, 160-year-old Holden brand in South Australia in 2017 after 69 years in operation, but the brand was still selling in the two countries by importing cars from abroad.
“The Holden brand will be retired from sales in Australia and New Zealand and local design and engineering operations will wind down by 2021,” parent company General Motors said in a statement on Monday.
The company had “taken the difficult decision” based on “global priorities,” Julian Blissett, GM’s International Operations senior vice president, said in the statement. Holden’s interim Chairman and Managing Director Kristian Aquilina said the decision was “agonising.”
“We’ve tried to find a way to defy gravity... I’m personally convinced GM tried everything to keep Holden going,” he said. “We’re heartbroken.” Australian Prime Minister Scott Morrison said he was not happy about GM’s decision to quit the market Down Under.
“I’m disappointed, but not surprised, but I am angry like I think many Australians would be,” Morrison told reporters in Melbourne.
“Australian taxpayers put billions into this, into this multinational company and they let the brand just wither away on their watch. And now they’re leaving it behind.”
He said the Australian government had provided more than two billion dollars directly to GM for the Holden operations over the years. Even competitor Ford said it was sad to see GM leave Australia.
“All of us here at Ford Australia is saddened to hear the news that Holden will cease operations,” Ford Australia said on Twitter.
“Holden is an iconic brand that holds a special place in the heart of many Australians, and has done so much to shape the Australian automotive industry and the country.”
The move will cut about 600 jobs across Australia and New Zealand, as well as the closure of many Holden dealerships, while about 200 jobs will be retained, mostly in aftersales and spare parts.
GM said Holden employees will be provided with “separation packages and employment transition support.” GM also said the company will honour all warranties and provide service and spare parts for Holden vehicles for at least 10 years.
Holden began in 1856 as a South Australian saddlery business and started manufacturing vehicle bodies in 1917. General Motors bought the company in 1931.
Australian car manufacturing has seen a steep decline in recent years. Toyota, which began manufacturing in Melbourne in 1963, shut down its Australia production in 2017, while Ford ceased production after 91 years in 2016. Australian domestic car market fell by about eight percent last year, while Holden sales went down by almost 29 percent.
