Along with announcing it will receive four new Opel models, Holden also said operations at its iconic Lang Lang proving ground would continue beyond the end of the company’s Australian manufacturing operations in 2017 during a press conference at Holden headquarters in Port Melbourne today.
General Motors Executive Vice President and President of GM International Operations, Stefan Jacoby, joined Holden Chairman and Managing Director Gerry Dorizas to make the announcement.
“Whether it’s earned on the Proving Ground or created in the GM Australia Design Centre, Holden will keep its proud Australian identity,” said Jacoby. “This announcement means that post-2017, Holden will not only retain its Lang Lang Proving Ground in Victoria but will host a design, engineering and product development workforce in Australia.”
Holden’s Lang Lang proving ground has been the site of testing for every locally produced Holden since 1958. Jacoby said the preservation of Lang Lang, combined with the additional announcement that three European-sourced models will join Holden’s portfolio next year, demonstrate Holden and GM’s long-term commitment to Australia.
“GM is undergoing a transformation that is committed to driving our markets – like Australia – towards success. We are focused on the long-term fundamentals, including ensuring Holden retains its proud Australian identity and provides customers with the best possible cars,” said Jacoby.
Dorizas said vehicles with a Holden badge will continue to be tuned and perfected at Lang Lang for Australia’s unique needs. The retention of the GM Australia design center and some engineering capability means Holden will continue to deliver Australian customers the vehicles they are used to.
“Our engineering and vehicle development team at Lang Lang will have the capability to tune suspension, steering and drivetrain characteristics for Australia’s unique conditions and customers,” said Dorizas. “The Lang Lang team will also remain plugged in to GM’s global engineering department, with ongoing input into product programs that reach beyond Holden and influence GM vehicles around the world. Our world-class GM Australia Design Centre will also continue to help shape not just future Holdens but GM vehicles around the globe.”
Comments
There was an article yesterday suggesting Mike Simcoe and Mark Reuss played a big role in pushing GM management for this. I do wonder what factored into this decision. Perhaps Mike and Mark were able to convince GM that there was talent and capabilities worth retaining. Even if engineers were offered jobs elsewhere in GM the prospect of having to move to Detroit as opposed to living in Melbourne, a city that has been ranked number one or in the top three in recent years on city liveability indexes is not something anyone would easily entertain regardless of your career, especially if the engineers are Australian.
Perhaps GM realised they were going to cop a hiding in the sales charts unless they could do something to convince buyers of some form of Australian content in the vehicles. There was probably some potential of Lang Lang ending up in the hands of a competitor. This doesn’t fit in with the usual slash and burn mentality (e.g. SAAB) that GM has when it comes to closing an operation. The $20 million sale cost of the facility was probably not enough when the cost of destroying the facility buildings and test tracks, environmental re-mediation etc is factored in so it made more sense to keep it. Hyundai maintain an engineering base in Australia to provide local suspension and steering tuning for their cars. They probably would have liked to have purchased it and hire the engineers. The land is also very far out from the city in Melbourne so the land value is not likely to go up significantly any time soon and from what I understand much of it is also environmentally sensitive.
From what I have heard Lang Lang was in serious need of investment even if the decision to close up the majority of operations was not made, as opposed to Ford Australia’s You Yangs (hahaha it rhymes) facility which is fairly up to date. I wonder if GM will decide to upgrade it in future.
Well that’s the best thing I’ve read in a very long time. Feeling – PROUD.
It is a no brainer as GM has proving grounds in most of the major markets to better tune the packages they use.
Who better to tune for the Australian market than Australians?
Also they can test there in the winter for the northern contents and also test models they do want seen here.