GM may shift Holden production to Korea

16-04-2014

General Motors says it is likely that South Korea will end up making its cars for the Australian market once Holden stops domestic car manufacturing.
General Motors' new international operations chief Stefan Jacoby has told reporters there is a "good likelihood" South Korea will ship more cars to Australia.
The signing of the recent free-trade agreement between Australia and Korea was a factor in the company’s decision, he said.
Under the new agreement tariffs will be cut on Korean cars coming into Australia.
"Korea is producing high-quality cars. It will have a major role in our manufacturing set-up in the region, Mr Jacoby said.
In a statement, Holden said there was no single factor behind the decision to cease production in Australia.
"A raft of economic drivers have worked against retaining manufacturing in Australia: the sustained strength of the Australian dollar, a small and highly fragmented domestic car market and the high cost of manufacturing in Australia," the company said.
"In planning for the next generation of Commodore and Cruze models due later this decade, Holden looked at every possibility to make the business case stack up. Unfortunately, there was no viable way to make the numbers work."
General Motors Holden has announced it will stop making cars in Australia from 2017.

RELATED NEWS

  1. Industry Update Media has appointed Claire Moffat as the new editor of its digital and print manufacturing news platform, Industry Update. Claire was formerly editor of Inside Waste for Prime Creative Media and more recently, a career coach for the University of Sydney Business School.
    She has a...
  2. Clean technology innovator 5B has received $14 million in funding from Australian Renewable Energy Agency (ARENA) to accelerate the automation of its innovative utility scale solar array, 5B Maverick. The funding contributes to a $33.4 million project that will result in a high volume, scalable and...
  3. AUSJET/ADVCA has indicated support for Prime Minister Scott Morrison and the National Cabinet for the decision to change close contact rules and isolation exemptions for the energy resources, water and waste management sectors.
    AUSJET/ADCVA chair Peter Jones said the past two years of COVID-19 have...