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#267905 17-Feb-2020 15:26
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From reports in Australia and in New Zealand. From General Motors press release:

 

 

GM Accelerates Transformation of International Markets

 

Sun, February 16, 2020

 

DETROIT, Feb. 16, 2020 /PRNewswire/ --

 

  • GM to cease Holden sales, design and engineering operations by 2021, plans to focus on growth opportunities in specialty vehicle business
  • GM and Great Wall Motors sign binding term sheet for sale of Thailand manufacturing plant
  • Chevrolet to cease domestic sales in Thailand by end of 2020 

General Motors (NYSE: GM) is taking decisive action to transform its international operations, building on the comprehensive strategy it laid out in 2015 to strengthen its core business, drive significant cost efficiencies and take action in markets that cannot earn an adequate return for its shareholders.

 

GM announced today that it would wind down sales, design and engineering operations in Australia and New Zealand and retire the Holden brand by 2021. The company will focus its strategies for the market on the GM specialty vehicle business. The company also announced that it had signed a binding term sheet with Great Wall Motors to purchase GM's Rayong vehicle manufacturing facility in Thailand; and would withdraw Chevrolet from the domestic market in Thailand by the end of 2020.

 

"I've often said that we will do the right thing, even when it's hard, and this is one of those times," said GM Chairman and CEO Mary Barra.  "We are restructuring our international operations, focusing on markets where we have the right strategies to drive robust returns, and prioritizing global investments that will drive growth in the future of mobility, especially in the areas of EVs and AVs.

 

"While these actions support our global strategy, we understand that they impact people who have contributed so much to our company. We will support our people, our customers and our partners, to ensure an orderly and respectful transition in the impacted markets."

 

GM President Mark Reuss said the company explored a range of options to continue Holden operations, but none could overcome the challenges of the investments needed for the highly fragmented right-hand-drive market, the economics to support growing the brand, and delivering an appropriate return on investment.

 

"At the highest levels of our company we have the deepest respect for Holden's heritage and contribution to our company and to the countries of Australia and New Zealand," said Reuss.

 

"After considering many possible options – and putting aside our personal desires to accommodate the people and the market – we came to the conclusion that we could not prioritize further investment over all other considerations we have in a rapidly changing global industry.

 

"We do believe we have an opportunity to profitably grow the specialty vehicle business and plan to work with our partner to do that," he concluded.

 

GM also undertook a detailed analysis of the business case for future production at the Rayong manufacturing facility in Thailand. Low plant utilization and forecast volumes have made continued GM production at the site unsustainable. Without domestic manufacturing, Chevrolet is unable compete in Thailand's new-vehicle market.

 

GM Senior Vice President and President GM International Steve Kiefer said these decisions built on the announcement in January that GM would sell its Talegaon manufacturing facility in India; significant restructuring actions implemented in Korea; and investment in and continued optimization of South American operations.

 

"These are difficult decisions, but they are necessary to support our goal to have the GM International region on the pathway to growth and profitability," said Kiefer.

 

"GM is well positioned in our GM International core markets: South America, the Middle East and Korea."

 

GM International Operations Senior Vice President Julian Blissett said that as well as implementing plans in international core markets, GM was continuing to optimize partnerships in markets like Uzbekistan, by transferring assets and building strong supply chains to reduce costs in growth markets.

 

"In markets where we don't have significant scale, such as Japan, Russia and Europe, we are pursuing a niche presence by selling profitable, high-end imported vehicles – supported by a lean GM structure," said Blissett.

 

"We will continue to implement these critical business strategies, while delivering a dignified and respectful transition in impacted markets."

 

In Australia, New Zealand, Thailand and related export markets, 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, working with the appropriate governmental agencies.

 

As a result of these actions in Australia, New Zealand and Thailand, the company expects to incur net cash charges of approximately $300 million. The company expects to record total cash and non-cash charges of $1.1 billion. These charges will primarily be incurred in the first quarter and continuing through the fourth quarter of 2020. These charges will be considered special for EBIT-adjusted, EPS diluted-adjusted and adjusted automotive free cash flow purposes.

 





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  #2422535 17-Feb-2020 15:49
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its actually more than just shuttering Holden , GM are totally withdrawing all their brands from the RHD market... Which I guess means we will never see the EV Bolt out here....

 

"General Motors has been making a slow retreat from other right-hand-drive countries over the past three years, getting out of lucrative markets such as the United Kingdom, Japan, India and South Africa.

 

 The three main remaining right-hand-drive countries were Thailand, Australia and New Zealand, but General Motors says it has become unprofitable to develop new vehicles for such comparatively small markets."

 

https://www.caradvice.com.au/827459/holden-axed-in-australia-as-general-motors-gets-out-of-right-hand-drive-globally/

 

This will make it very interesting next time the police contract rolls round..... Toyota tipped their toe in the water last time round and there are still a couple of painted up Camrys that the police used as test vehicles,  but I'm guessing with this development they might be back with a sharper offer, -


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  #2422536 17-Feb-2020 15:51
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^ That's what I read into that media statement as well.

 

 

 

I don't see where it says they are replacing Holden with Chevrolet, but I suppose 'GM Specialty Vehicles' could be some fancy Chevys.


 
 
 
 


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  #2422541 17-Feb-2020 15:59
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LHD = third of the population and a quarter of the roads. Sounds like a fair chunk of the market to abandon.





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  #2422546 17-Feb-2020 16:02
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trig42:

 

^ That's what I read into that media statement as well.

 

I don't see where it says they are replacing Holden with Chevrolet, but I suppose 'GM Specialty Vehicles' could be some fancy Chevys.

 

 

"Going forward, GM intends to focus its growth in New Zealand and Australia on specialty vehicles such as the Camaro and the upcoming Corvette. This opens the possibility of importing and re-engineering other American-only offerings that we previously didn't get down here. "

 

https://www.driven.co.nz/news/news/it-s-finished-general-motors-announces-the-death-of-holden/

 

Holden sold 13,000 vehicles last year in NZ, I would imagine once this is fully implemented they will sell less than a thousand, that's a big drop...


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  #2422553 17-Feb-2020 16:12
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To be honest, the writing was on the wall when Commodore was declared dead last year.

Every other vehicle in the range is a rebadged Chevrolet or GMC

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  #2422568 17-Feb-2020 16:38
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WyleECoyoteNZ: To be honest, the writing was on the wall when Commodore was declared dead last year.

Every other vehicle in the range is a rebadged Chevrolet or GMC


Far more often they have pushed Daewoo junk into this market. They have treated the market poorly for years, this just kills off a body that's been on life support for years.

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  #2422613 17-Feb-2020 16:43
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wellygary:

 

This will make it very interesting next time the police contract rolls round..... Toyota tipped their toe in the water last time round and there are still a couple of painted up Camrys that the police used as test vehicles,  but I'm guessing with this development they might be back with a sharper offer, -

 

 

This seems to be in Toyota's favour now...their biggest competitor for the contract just disappeared. Unless Mazda makes a bid with the 6.


 
 
 
 


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  #2422621 17-Feb-2020 16:52
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This will have a huge effect on the Aussie V8 Supercars program, no more Ford vs Holden.


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  #2422625 17-Feb-2020 16:58
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Ford vs Chevy (special vehicles) instead.

 

I feel more youtube vids by ‘Mahk’ at Zebra Corner incoming.





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  #2422626 17-Feb-2020 17:00
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DjShadow:

 

This will have a huge effect on the Aussie V8 Supercars program, no more Ford vs Holden.

 

 

There is no point is spending advertising $$$ if you aren't selling product,

 

 


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  #2422627 17-Feb-2020 17:00
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Handle9:
WyleECoyoteNZ: To be honest, the writing was on the wall when Commodore was declared dead last year.

Every other vehicle in the range is a rebadged Chevrolet or GMC


Far more often they have pushed Daewoo junk into this market. They have treated the market poorly for years, this just kills off a body that's been on life support for years.


The Holden brand will go, but I'd guess/bet the cars will stay. I'd expect a lot of the small town Holden dealerships to close, but those in the main centres to be rebranded/relaunched as Chevrolet dealerships. Pretty much everything Holden sell now can be purchased from a Chevrolet dealership, with the exception of the Astra.

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  #2422628 17-Feb-2020 17:01
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Helps out other manufacturers


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  #2422629 17-Feb-2020 17:06
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Obraik:

 

wellygary:

 

This will make it very interesting next time the police contract rolls round..... Toyota tipped their toe in the water last time round and there are still a couple of painted up Camrys that the police used as test vehicles,  but I'm guessing with this development they might be back with a sharper offer, -

 

 

This seems to be in Toyota's favour now...their biggest competitor for the contract just disappeared. Unless Mazda makes a bid with the 6.

 

 

And they’ll have to find something other than the C(r)aptiva to use for their armed patrol vehicles. A Model X maybe??? (Joking)





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  #2422630 17-Feb-2020 17:07
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DjShadow:

This will have a huge effect on the Aussie V8 Supercars program, no more Ford vs Holden.



Gen 3 regulations are being worked on at the moment with those regulations to come in to force in 2022.

Some say that with the Walkinshaw Andretti partnership, BMW might be involved, but no one really knows.

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  #2422631 17-Feb-2020 17:07
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GM are exiting, not just Holden.

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