General Motors (GM) has announced plans to retire the iconic Australian car brand Holden in Australia and New Zealand as part of its move to exit more markets.
US automobile giant GM has expressed plans to halt sales, design and engineering operations of its Holden car brand in Australia and New Zealand by next year. It has also agreed to sell its manufacturing plant in Thailand to China's Great Wall Motors.
The announcement comes three years after the company stopped manufacturing in Australia. In a statement on the firm's website, GM chief executive officer (CEO) Mary Barra said: "I've often said that we will do the right thing, even when it's hard, and this is one of those times."
While the statement did not specify the number of employees that will be affected by the move, reports suggest that up to 600 jobs will be lost.
GM President Mark Reuss pointed out that the firm considered various ways to keep the Holden brand but had decided that it would cost too much to remain in the "highly fragmented right-hand-drive market".
The move was part of GM's strategy of exiting unprofitable markets while it focuses on the US, China, Latin America and South Korea.
Once completed, the closure will end 160 years of the Holden name's association with Australia, where the company was founded as a saddle maker in 1856 before it started building vehicles in 1908. It was purchased by GM in 1931.
Holden announced at the end of 2013 that it would stop production in Australia and start importing vehicles from its overseas plants. GM attributed this to a strong Australian currency, high manufacturing costs and a small domestic market.
The company also announced late last year that it would stop selling its iconic car, the Commodore, after more than four decades.
The ending of Australian production in 2017 resulted in the loss of almost 2,900 jobs.
