Holden axed: Scott Morrison slams US parent company after $2 billion handout
Prime Minister Scott Morrison has slammed General Motors’ decision to axe the Holden brand, accusing the US car giant of wasting billions of dollars in taxpayer money while allowing the iconic Australian marque to “wither away”.
Holden’s closure was announced on Monday, less than three years after GM ceased the brand’s production in Australia.
Speaking at a Melbourne press conference, GM International Operations senior vice president Julian Blissett said it was “an agonising decision for us and one we didn’t make lightly or easily”.
“With the global consolidation of the automotive industry, it’s becoming increasingly challenging for us to support a brand and a business that operates in just two markets,” he said.
“In short, GM desperately wanted a successful and sustainable Holden in both Australia and New Zealand.
“We implemented a number of alternative strategies but ultimately GM has taken the decision it’s unable to prioritise the significant investment required for Holden to be competitive and profitable long term.”
Holden interim chairman and managing director, Kristian Aquilina said the company had “chased down every conceivable option” to prevent the axing of the brand.
“We have had multiple rounds of discussions and tried to find a way to defy gravity,” he said.
“But the truth and the hard truth was there’s just no way to come up with a plan that would support a competitive and growing and flourishing Holden and also provide a sufficient return to our investors.”
The federal government vowed to hold Holden accountable over its promise to support 600 workers and hundreds of dealers and suppliers affected by the company’s plan to retire the brand by 2021.
Speaking at a press conference on Monday, Morrison said he was “disappointed but not surprised”.
“I am angry, like I think many Australians would be,” he said.
“Australian taxpayers put millions into this multinational company. They let the brand just wither away on their watch. Now they are leaving it behind.
“I think that’s very disappointing, that, over many years, more than $2 billion was directly provided to General Motors for the Holden operations.
“I think the fact they took money from Australian taxpayers for all those years just to let the Holden brand wither on their watch, I think is disappointing.”
In 2013, Holden revealed it had received $2.17 billion in taxpayer-funded subsidies over 12 years.
The company said it would continue to honour all existing warranties and guarantees as well as provide servicing and spare parts for at least 10 years.
There are currently 185 Holden dealerships across Australia.