General Motors's Holden unit, Australia's largest carmaker, said it would close production lines in 2017 after 69 years, joining Ford in exiting an economy struggling with high costs and a strong currency.
About 2,900 employees will lose their jobs, according to a statement released hours after GM said Dan Akerson will step down as chief executive officer.
Holden's departure may drive out the last remaining carmaker Toyota and further damage a manufacturing sector that has shrunk to 7.1 per cent of Australia's economy from 29 per cent in 1960.
Competition from imports, a fragmented domestic car market, high costs and the strength of the dollar had created a “perfect storm of negative influences” for Australia’s car industry, Mr Akerson said in a statement on Holden’s website. – (Bloomberg)