The world's second-largest auto maker said it
was closing its Holden plants in South Australia and Victoria
states, affecting 2,900 jobs.
The decision comes after months of speculation and debate about
GM's future in Australia and after the government on Tuesday
demanded the company end the uncertainty about its future.
"The decision to end manufacturing in Australia reflects the
perfect storm of negative influences the automotive industry
faces in the country, including the sustained strength of the
Australian dollar, high cost of production, small domestic
market and arguably the most competitive and fragmented auto
market in the world," GM Chairman and CEO Dan Akerson said in a
statement.
The announcement came only one day after the head of GM's Holden
unit said in Melbourne that the automaker had made no decision
on whether to stop making cars in Australia after 2016 and would
need more assistance from the Australian government to survive
long term.
There have been widespread concerns that an exit by GM Holden
would be followed by Toyota Motor Co <7203.T>, causing a
collapse of the entire domestic industry, supporting more than
40,000 workers and 150 supplier companies.
In May, Ford Motor Co <F.N> said it would shut its two
Australian auto plants in October 2016, following the exit of
Mitsubishi Motors <7211.T> in 2008.
Australia has annual sales of around 1.1 million new vehicles,
but sales of locally manufactured vehicles have fallen to less
than a quarter of that, from almost 389,000 in 2005.
GM said it expects to record pre-tax charges of $400 million to
$600 million in the fourth quarter of 2013.
(Reporting by Lincoln Feast in
Sydney and Kevin Krolicki in Tokyo; editing by Jeremy Laurence)
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