GM Commits to Holden - For Now

With Ford out of the picture in Australia, all eyes turn towards Holden and how it will handle the challenges of the local market.

Last week Ford made the sad but inevitable announcement that it would end Falcon production in 2016. This is a big blow to the Australian auto industry in terms of not just jobs at Ford and local suppliers, but also to rear-wheel-drive sedan enthusiasts. Now the attention begins to shift to GM and its Holden division in regards to its future, specifically with the RWD Commodore. According to a report from Autoblog and Holden itself, there apparently isn't any reason to be worried, for the time being at least.

Holden Chairman and Managing Director Mike Devereux stated in a press release that "Despite Ford’s announcement to end local manufacturing, we believe the industry can survive in Australia and has already adjusted in large part given’s Ford’s relatively low production volumes." So yes, this means the newly launched Holden VF Commodore won’t be getting the axe like its Falcon rival. In fact, Holden created a 10-year, billion-dollar investment plan in coordination with the Australian government last year. However, that plan will require Holden to produce more global vehicles which, as we all know, are rarely big RWD performance sedans. 

Now that Ford is out of the picture, however, Holden is faced with a new challenge in making sure the local supplier base stays alive as well. Also of importance is the fact that Holden builds the US version of the Commodore, the Chevy SS, and that car's future is also dependent on Holden.