General Motors has announced Holden will discontinue vehicle and engine manufacturing in Australia by the end of 2017.
As a result, approximately 2,900 jobs will be impacted over the next four years. This will comprise 1,600 from the Elizabeth vehicle manufacturing plant and approximately 1,300 from the company’s Victorian factory.
Holden will continue to have a significant presence in Australia beyond 2017, comprising a national sales company, a national parts distribution center and a global design studio.
With this decision, General Motors expects to record pre-tax charges of $400 million to $600 million in the fourth quarter of 2013. The charges would consist of approximately $300 million to $500 million for non-cash asset impairment charges including property, plant and equipment and approximately $100 million for cash payment of exit-related costs including certain employee severance related costs.
