Thoughts About GM and Holden

“I’ve often said that we will do the right thing, even when it’s hard,” said GM chairman and CEO Mary Barra, who added, “And this is one of those times.”

She was referring to the company’s decision to (1) close Holden operations in Australia and New Zealand; (2) sell a plant in Thailand to Chinese company Great Wall; and (3) remove Chevrolet from Thailand by the end of the year.

As to the second and third points, you might be thinking, “Thailand?” It is a huge pickup truck market. In fact, before the Chevy Colorado came to the U.S. it was available there.

As for Holden, it is a company with roots in automotive that go back to 1908—and the original company was established in 1856 as a saddlery. GM has owned it since 1931.

Barra went on to say, “While these actions support our global strategy, we understand that they impact people who have contributed so much to our company. We will support our people, our customers and our partners, to ensure an orderly and respectful transition in the impacted markets.”

It is remarkable that Barra fully acknowledged that this is a decision that didn’t come lightly. In an industry where it is easy to talk about transformation and change, it is something that has real consequences for people who have bills to pay and mouths to feed. It isn’t just about sensors and electric motors and the promise of a bright shiny future. It means a rethink for many people in terms of how they’re going to earn their daily bread and keep the mortgage payments current.

Barra deserves credit for bringing that out openly. And one can only assume that the company will work to help make the transition for the people who are losing their jobs as smooth as practical. Which is all that one can ask for.

GM president Mark Reuss also commented about the decision. He said, “At the highest levels of our company we have the deepest respect for Holden’s heritage and contribution to our company and to the countries of Australia and New Zealand.”

What isn’t widely known about Reuss is that that comment comes from first-hand understanding: he’d spent two years as vice president and managing director of GM Australia and New Zealand.

Reuss is a performance enthusiast, and I remember talking with him after he’d returned and he was quite chuffed about vehicles like the Holden Special Vehicles GTS.

And let’s not forget that when the Pontiac GTO returned for its brief two-year stint (2004-06) it was a rebadged Holden Monaro. Reuss’ words about the deep respect for Holden are undoubtedly authentic.

And it occurs that Pontiac, of course, ceased to exist in 2009.

These are exciting times in the global industry. But “exciting” doesn’t mean good for everyone.