Despite headwinds, Holden remains committed to Australia

General Motors' Holden brand says it remains committed to Australia's auto industry despite Ford's recent announcement that it would end production in the country by 2016. However, the Australian automaker cautioned that “tough” times lie ahead.

Late last week Ford announced that it would be throwing in the towel on Australian vehicle production by 2016, citing slow sales and slim profit margins. Although those same difficulties face GM's Holden, the Australian automaker says it remains committed to its home market.

“Despite Ford's announcement to end local manufacturing, we believe the industry can survive in Australia and has already adjusted in large part given Ford's relatively low production volumes,” Mike Devereux, Holden Chairman and Managing Director, said in a statement.

Devereux added that Holden has already put a plan in place with the Australian government to build two new global vehicles in the country through at least 2022.

However, Devereux said Ford's decision highlights “just how tough it is for manufacturers in Australia.”

“The industry needs swift action to make Australia's automotive policy settings clear, consistent and globally competitive as quickly as possible,” he said.

If new policies aren't put into place soon, it could be a matter of time before Holden is added to Australia's history books.