Why General Motors was right to shut Holden

The Holden Commodore VF was the last true model for the brand

Before you get your pitchforks and come after me, hear me out Holden fans.

When General Motors decided to shut down the Holden brand it was devastating, and I personally found it incredibly sad for not just the Australian motoring industry but also our national car culture. Holden was ‘Australia’s brand’, more so than Ford ever was, despite both making domestic cars here for decades. From the FX to the VF, Holden made dozens of local cars across the decades and cemented its place in our national psyche.

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But by the time General Motors (GM) pulled the pin in February 2020, Holden was a pale reflection of its best self. With the demise of the VF Commodore in October 2017, Holden no longer sold any Holdens, only General Motors vehicles with Holden badges tacked on the front.

General Motors Australia and New Zealand operations

The final Commodore was an Opel, the Arcadia SUV was a GMC, the Equinox was a Chevrolet and so on. No model was a true Holden any more, not in the same way the Commodore, Torana, Kingswood and others were in the past.

So if GM was going to just give Holden whatever models were easiest and cheapest for right-hand drive, I’m glad they stopped destroying the image and legacy of Holden and instead decided to just commit to its new niche sales model.

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What is GMANZ?

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To understand why GM has made the right decision, you need to understand how it has restructured itself in Australia. While GM Specialty Vehicles (GMSV) is the most high-profile new element, it’s only one part of the broader GM Australia and New Zealand operations. GMSV looks after the Chevrolet models, the Corvette and Silverado, as well as the incoming GMC Yukon. Cadillac is a completely standalone division, selling direct-to-public and running through a series of company-owned stores.

Then there’s the parts and servicing operations, which utilise both the ACDelco and the Holden names, depending on the location. While GM insists the Holden name is here to stay, ACDelco is its clear future focus as it is free from any specific brand allegiance.

Then there’s Chevrolet Racing and Chevrolet Performance Parts to keep the enthusiasts happy.

Why GM is better than Holden

Understanding that, it becomes clear how and why this new structure is better than the old Holden model. One of the key messages from Holden executives during its final years was that its freedom of choice from across the GM global portfolio made for an ideal line-up that best suited the market.

Except that was not the case. Instead, it was a hodgepodge of badge-engineered GM models that simply didn’t make a cohesive line-up. As I mentioned earlier, it was a blend of Chevys, Opels and a GMC, with a dash of Isuzu mixed in too, that didn’t have any sort of consistency across the range.

There was always a plan to sell the Corvette as a Chevrolet before Holden closed, and it appears the same was true for Cadillac (even if no-one has officially said so), which only would have confused matters further.

Switching to the GM model means GMSV is free to pick and choose the models that work here, but instead of slapping a Holden badge on the front, they are proudly what they were always intended to be. The Corvette and Silverado fly the Chevrolet flag, while the new Yukon will introduce the more premium GMC brand.

By separating Cadillac completely from GMSV it will allow it a better chance of success. It can now be its own standalone brand, in its bespoke retail spaces, rather than an addition to the Holden/GMSV showrooms around the country.

Less is more

The other key benefit to this new tactic is a smaller line-up of offerings that are focused on the markets that matter. Gone are the underwhelming Astra, Trax and Equinox models and instead GM is now focused on the Silverado, Corvette and Yukon, with Cadillac set to begin with the Lyriq. It can now add only the models that it believes Australians want and it can make a profit on, rather than carry a bloated inventory because of Holden’s past.

GMANZ may be part of the world’ biggest car maker, but it can act like a start-up, hand-selecting the models that have the best chance of success. Which will ultimately be an improvement for us, the customers, as we get a better choice of vehicles.

As sad as it is that Holden is gone as a brand, this new way of doing business is simply better. Carrying on the Holden brand wouldn’t have done justice to what it was meant to be, Australian-made cars for Australian motorists; not imported cars with a local badge. I think GM’s new way of operating is far more upfront and isn’t trying to sell us something it isn’t.

I can understand why Holden fans still mourn its loss, but it’s time had come, sadly