General Motors, the owner of the Chevrolet and Holden brands has just announced that it is ceasing operations in Thailand (For Chevrolet) and Holden for Australia and also New Zealand. In a press statement on the 16th of February, General Motors (GM) is in the process of selling its Chevrolet manufacturing facility in Rayong to Chinese car manufacturer, Great Wall and GM will withdraw from the Thailand domestic market by the end of this year, 2020.
The Chevrolet brand has come and gone from the Malaysian market a few times (4 times actually) and the last effort by the Naza Group feel through when GM did not deliver on its promises of new generation vehicles and better after sales support. We wrote about this on December 16th 2018 and was met with criticism from the GM ASEAN corporate communications department and we replied accordingly. Now, it looks like what we said did happen.
GM has communicated that for Australia, New Zealand, Thailand and related export markets, current customers can be assured that GM will honor all warranties and continue to provide servicing and spare parts. Local operations will also continue to handle all recall and any safety-related issues. This seems to be unlikely as there is no representative right now in Malaysia. Probably the Singapore office will handle recalls and warranty issues.
Current Chevrolet Colorado, Malibu, Orlando and Cruze owners will need to check with the website.
Press Release: The Holden brand will be retired from sales in Australia and New Zealand and local design and engineering operations will wind down by 2021, General Motors (NYSE: GM) announced today. Maven and Holden Financial Services operations will also wind down in Australia.
GM International Operations Senior Vice President Julian Blissett said GM had taken the difficult decision after implementing and considering numerous options to maintain and turn around Holden operations.
“Through its proud 160-year history, Holden has not only made cars, it has been a powerful driver of the industrialization and advancement of Australia and New Zealand,” said Blissett.
“Over recent years, as the industry underwent significant change globally and locally, we implemented a number of alternative strategies to try to sustain and improve the business, together with the local team.”
GM undertook a detailed analysis of the investment required for Holden to be competitive beyond the current generation of products. Factors impacting the business case for further investment included the highly fragmented right-hand-drive markets, the economics to support growing the brand, and delivering an appropriate return on investment.
“After comprehensive assessment, we regret that we could not prioritize the investment required for Holden to be successful for the long term in Australia and New Zealand, over all other considerations we have globally,” said Blissett.
“This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team.”
GM intends to focus its growth strategy in Australia and New Zealand on the specialty vehicles business and plans to immediately work with its partner on developing these plans.
GM Holden Interim Chairman and Managing Director Kristian Aquilina said that given the significance of Holden through its history, it was critical the company worked with all stakeholders to deliver a dignified and respectful wind-down.
“Holden will always have a special place in the development of our countries. As Australia and New Zealand grew, Holden was a part of the engine room fuelling that development,” said Aquilina.
“Today’s announcement will be felt deeply by the many people who love Holdens, drive Holdens and feel connected to our company which has been with us for 160 years and is almost ubiquitous in our lives.
“Unfortunately, all the hard work and talent of the Holden family, the support of our parent company GM and the passion of our loyal supporters have not been enough to overcome our challenges.
“We understand the impact of this decision on our people, our customers, our dealers and our partners – and will work closely with all stakeholders to deliver a dignified and respectful transition.”
Holden customers can be assured that the company will honour all warranties and servicing offers made at time of sale. Holden will provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand. As required, Holden and its aftersales network will also continue to handle any recalls or safety-related issues if they arise, working with the appropriate governmental agencies.
Impacted Holden employees will be provided separation packages and employment transition support.
Holden will work with its dealer network on appropriate transition arrangements, including offering dealers the opportunity to continue as authorized service outlets to support Holden customers.
