Holden ends production in Australia

Car manufacture has been a proud industry in Australia, often eliciting a kind of religious dedication similar to that of Apple. Home grown Holden and Ford built almost tribal loyalty among their customers, with the faithful flocking from all over Australia hoping to see their favourite brand taste victory in the annual head-to-head Bathurst 1000 motor race.

Buoyed by strong home support, Holden and ford had for a long time enjoyed a strong Australian market, with the government imposing high tariffs for any would-be importers. 

Yet despite such strong trading conditions for Holden, the final car has now left what was Australia’s last home grown vehicle plant. Toyota, who also produced models in Australia, have long since gone, closely followed by Ford. 

So what happened to Australia’s motor industry?

Prof Roy Green, the dean of UTS Business School in Sydney has shed some light on the situation:

"In a sense, the Australian local assembly industry was destined to fail because it was established originally behind very high tariff barriers," he states.

"It couldn't become export competitive when the tariffs were reduced. This is when imports started to flood in and the local industry was very slow to adapt, very slow to take on new ideas and methods." he added.

Holden held on for longer than its competitors due to such strong local support, but with government subsidies coming to an end, Holden had little option other than to announce it could no longer afford to manufacture cars in Australia.

General motors, the parent company of Holden, will now produce models in its German production facility alongside the European brand Opel.  It will be interesting to see how the Australian public respond to this imported version of a national icon, only time will tell if this brand still has a future.