Holden to close its doors in 2016

Holden will not only say goodbye to its ute in 2016, but GM is willing to close the doors of the Australian brand, also in 2016. Although the decision has not yet been made officially, Holden and GM are negotiating with the Australian government for possible financial aid for the brand.

Without financial aid, the brand cannot compete globally, according to executives. And with a long history of models produced solely for the Australian market, New Zealand and little more, Holden is threatened by the ever-growing imports, especially of Japanese products.

For the time being, Holden is holding talks with figures from the highest echelons of the Australian government. They have met with Tony Abbott, the country’s prime minister, although no agreement has been reached. The closure of the brand would leave Australia virtually without automotive production in the near future, since the other three most important manufacturers producing in Australia (Ford, Toyota and Mitsubishi) are studying some similar decision; Ford will withdraw in 2016, Mitsubishi has already done so and Toyota has not yet decided its future, but there are rumors that it could be thinking of leaving the country.

For now, the Australian government has announced that it will not give more aid to the brands beyond those already contemplated. For Holden’s part, it is seeking government help to bear production costs and high export taxes, as well as the impact of the Australian dollar, a currency that has gained much more value in recent years.

Via | Yahoo! Coches