We’re not sure if Australia as a whole, industry analysts, or the collective amount of automotive journalists ever felt Guido Dumarey would succeed in purchasing Holden’s Elizabeth factory to continue producing Zeta-based Commodore, but damn, it would have been a good story.
And that’s what we want to hear. We put every ounce of our beliefs in Dumarey, because we all love an underdog, and we want him to succeed against the odds to save a slice of Holden and the vehicles it has produced. Unfortunately, the buck stops here.
Wheels reports Dumarey has officially retracted his bid to purchase the South Australian manufacturing facility after recently beginning talks with General Motors.
Dumarey’s corporation, Punch Powertrain, and General Motors have issued a joint statement on the matter. It reads as follows:
General Motors and Punch Corporation have undertaken and completed a detailed global evaluation of a proposal from Punch Corporation to continue manufacturing vehicles at Holden’s Elizabeth plant in South Australia.
Both parties concluded that a viable business model was not possible for this case. Therefore the proposal will not be taken forward.
GM and Punch have communicated on this decision.
As discussions have been governed by a Non-Disclosure Agreement, neither party involved is able to discuss details of the proposal, nor the assessment.
The challenges to domestic automotive manufacturing in Australia – lack of scale, high production costs, supply base contraction and increasing market fragmentation – persist and cannot be overcome for this business case.
In particular, the wind down of the supply base following the manufacturing exit of the three existing car makers, and the critical production mass they represent, is insurmountable.
GM thanks Punch Corporation for their proposal. GM will continue to consider Punch Corporation, along with other interested parties, to participate in the sale process of the Elizabeth plant and assets after GM ceases local manufacturing.
Punch Corporation will continue to pursue other business opportunities in the Australian automotive sector.
The Australian government had thrown every bit of support behind Dumarey, and the man himself seemed to be particularly optimistic about the situation, making the news seem a tad abrupt.
Industry Minister Christopher Pyne said he was “surprised and disappointed” by the decision.
“It [the decision to exit talks] does not match the statements both Punch and GM have made to me,” he said. “The government offered every support to Punch in every matter that they raised with us.”
Holden will cease manufacturing locally towards the end of 2017 with the VF Commodore Series II.
Comments
Not surprising as this GM is not just killing this because they want to piss people off.
Right now to have continued this and rebuild this for the future would be tough to do.
Maybe he can buy the plant and make parts or other things there to at least save the jobs.
It would not have been tough to do, GM just doesn’t want Zeta loose like how Epsilon I is being proliferated by NEVS. Anyone who wants to build a basic, non-EU/US car just has to call NEVS.
If China got a hand in Punch, they could be shipping cheap 5-series (and CTS) rivals in the USA using Zeta.
Look, I wanted this to happen, but GM looked out for their long game. Now they get to pay a long game of plant cleanup costs, too.
Not likely.
Don’t be surprised if the State Governments involved hit them hard with clean up costs. They have only been concerned with environmental responsibility in the last 10 years or so.. Over the previous 40.. Well you get the picture… They won’t get away with just “walking away”.. Let’s hope it costs them many, many hundreds of millions of dollars and many, many years to clean up in SA and Vic. GM owe these communities at least that much.
Zeta is more valuable dead to GM than it is sold for a small profit. Who would be there to stop Punch or any future partner from updating the heavy yet still world class Zeta for use and in particular for use within the luxury segment? Who’s to say punch wouldn’t licence a refined and lighter Zeta to FCA for Alfa?
GM is still, in an indirect way, competing against it’s self due to the former GM/Fiat partnerships which made possible the quick design of the US Wide platform many years later.
And even as FCA exits the mid-size car market (FCA is moving to small-and-large cars only), that platform will probably be sold to Mitsubishi, and likely create the next Lancer. Just as Mitsubishi survived on old Chrysler platforms for the past decade, and just as the last Lancer was based on the DSM architecture.
I’m extremely disappointed in general motors, i have a zeta based caprice. These cars are awesome. GM seems to think that there isn’t a market for a rear wheeled drive sedan, mary barra needs to pull her head out of her own butt and wake up. Bring production stateside, i fail to see why they can’t.
You’re half right; however, such a car belongs on the Omega, or even Alpha platform, and positioned for global sale through GM’s many regional brands. Avista, if tweeked could be sold in both sedan and coupe form and fill the market niche you address.
Buick needs a RWD halo, much like Lexus did, if the brand and to truly be luxury. As it stands now, the auto press continue to compare Buick to a Titanium-trimmed Ford and this is not a recipe for the success of Buick or Chevrolet as such labeling clouds perception.
GM is big enough for two real luxury brands with Buick attacking Lexus, Lincoln and the AWD world of Audi while Cadillac fights off BMW and Benz. This will also allow Chevrolet the opportunity to better promote it’s Premier trim.
The Federal Government had no intention of working with Holden 3 years ago and despite what Mr Pyne says, there’s no reason to believe that they have changed their position. The hard part has been done. It’s easy for him to say, Aw gee! We thought the talks were going well, but the truth of the matter is, they don’t want to assist any manufacturing industry of any description in this country. Talk is cheap and sadly, it’s now all over and we have to deal with the consequences.
The sad, sad end of an era 🙁
I am so glad this has taken place, I don’t think Holden and the aussies should be given anything! They don’t deserve to get a great car to buy in the future.
Obviously that has been GM’s logic for decades scott as all we get imported by GM here is bottom of their class, overpriced piece of crap vehicles. As far as most of us are concerned after 2017 GM can take their sub standard imports and piss off back to the states! Also i find the Audi’s, Mercedes, BMW’s, Mazda’s. Nissan’s etc etc etc all to be great cars that are sold here, I really don’t think what GM sells here in Oz has an impact on quality vehicles once the Commodore is gone, more like an impact on the sub par clunker market.
just like the ex, she doesn’t want you anymore but doesn’t want anyone else to have you either. I will never buy a gm product again especially one made in that Daewoo factory.