The Aussie Holden is no more.
GM Holden will end vehicle and engine manufacturing in Australia by the end of 2017 as well as significantly reducing engineering operations, with the loss of nearly 3000 jobs over the next four years. 1600 will go from the South Australian Elizabeth vehicle manufacturing plant and approximately 1300 from Holden’s Victorian workforce.
Detroit-based GM Chairman and CEO Dan Akerson said the decision was the result of a “perfect storm” that included “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.”
The company will remain as a sales and distribution network.
GM expects to record pre-tax charges of $400 million to $600 million in the fourth quarter of 2013. The charges would consist of approximately $300 million to $500 million for non-cash asset impairment charges including property, plant and equipment and approximately $100 million for cash payment of exit-related costs including certain employee severance related costs.
Business Insider Emails & Alerts
Site highlights each day to your inbox.