Why did Holden shut down? The reason behind the collapse?

Holden was one of the most iconic car manufacturing brands in Australia. However, General Motors announced its retirement in February 2020 and officially ended its operations on 1 January 2021. Many Holden lovers, especially in Australia and New Zealand, still wonder why Holden shut down.

There were many reasons for the brand’s disappearance; the main one was the small market size of Australia and New Zealand.

Other contributing factors include a strong Australian currency and high manufacturing costs. Local manufacturing in Australia became too expensive becuase of the strong currency, making it cheaper to import vehicles than manufacturing locally.

Declining sales were also one of the main factors. Many buyers’ interests shifted toward international brands such as Toyota, Hyundai, and Mazda, which significantly impacted sales.

As a result of these challenges, Holden made the decision to exit local manufacturing and close down. Despite its closure, Holden remains an important part of Australia’s automotive history.

If you are concerned about Holden spare parts, you can rest assured that GM is committed to supplying these parts for at least 10 years after 2021. This means you can get new Holden parts until 2031. Another option for obtaining Holden parts is to buy from Holden wreckers, who offer OEM Holden parts at very competitive prices.