Departure of General Motors from Australia, New Zealand and Thailand!

MANILA: The US giant automaker has decided to retreat its design and engineering operations from Australia and New Zealand by 2021. The company also plans to sell its Rayong factory in Thailand to China’s Great Wall Motors and withdraw its popular Chevrolet brand from Thailand by the end of 2020. Rayong factory is a 180k capacity vehicle assembly plant on the eastern seaboard as well as a powertrain plant with 120k capacity. After-sales service support for local Chevrolet owners shall continue in local markets through the dealer network.

The withdrawing of manufacturing operations for Chevrolet comes as a shock wave since Chevrolet Thailand “renewed its commitment for 2020” at the 2019 Dealer Recognition and Grandmasters Award Ceremony, held just last month.

GM’s Holden brand has been in Australia and New Zealand for 160 years and is beloved by many motor racing fans down under.
GM CEO announced these actions as part of a strategy to exit markets that are not yielding adequate returns of investment, causing disappointment among officials over job losses. The US automaker’s global restructuring was announced earlier in 2015, aiming to concentrate on profitable markets.

Mary Barra, Chairman and CEO of GM, said these words in a very aspiring speech, “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 electric and autonomous vehicles. This is a hard thing to do but is also the right thing at this time”, she added.

The US automaker said that it expects to take $1.1 billion in cash and noncash charges this year from the operations in cuts in the countries, mostly in the first quarter.

GM has around 528 workers in Australia and New Zealand and another 1500 in Thailand. All the workers in Australis and New Zealand are in dismay with this announcement, resulting in an end to their jobs with a place they have been associated with a substantial part of their life. One of the Australian Manufacturing Union members expressed his grief stating that “many of the long-term workers have remained loyal to the company and have loved to be a part of this car industry. For them, it’s the end of an iconic brand.”

GM President Reuss also expressed his deepest respect for Holden’s heritage and contribution to the countries of Australia and New Zealand.

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