Holden will cease manufacturing in Australia in 2017.
After weeks of intensifying speculation and the day after the Holden’s managing director Mike Devereux refused to confirm rumours about the closure when he fronted the Productivity Commission, parent company General Motors has made the decision to turn Holden into a “national sales company in Australia and New Zealand.”
"The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world," said outgoing GM CEO and chairman Dan Akerson.
Acting prime minister Warren Truss was told the news this afternoon before Question Time, he told parliament.
Devereux said that, “This has been a difficult decision given Holden’s long and proud history of building vehicles in Australia.
"We are dedicated to working with our teams, unions and the local communities, along with the federal and state governments, to support our people."
About 2,900 jobs – 1,600 at Elizabeth and 1,300 at Port Melbourne – will disappear as Holden winds down its factories' operations.
Devereux will address media at 3:30pm AEDT.
More to come.