Australia is losing another carmaker. General Motors says it will stop making vehicles down under by 2017.
This comes just months after Ford said it will close its plants there in two years time.
GM’s reasoning is the same as Ford’s – the Australian currency is too strong, production costs there are too high and the domestic market. is small, fragmented and competitive.
GM’s General Manager in Australia Mike Devereux said: “No matter which way we applied the numbers, our long term business case to make and assemble cars and engines in this country is simply not viable. Now it’s no secret we are witnessing a huge shift in the automotive market in this country but also in the wider economy of Australia.”
GM in Australia manufactures under the name of Holden.
The fear now is that the sole remaining producer in Australia – Toyota – will also leave.
That would threaten the continued existence of around 150 suppliers of components and spare parts .. who directly employ more than 40,000 people.