The Holden Car Company, a name synonymous with Australian motoring for generations, boasts a rich and complex history. Its journey from humble beginnings as a saddlery business to becoming a cornerstone of Australian manufacturing and culture is a fascinating tale of innovation, adaptation, and ultimately, decline. This is the story of the Holden car company.
1856: The Saddlery Origins of Holden
The Holden story begins not with automobiles, but with horses. In 1856, James Alexander Holden, an English immigrant, established his saddlery business in Adelaide, South Australia. Quickly gaining a reputation for quality craftsmanship, J.A. Holden & Co. became a prominent manufacturer of horse saddles, harnesses, and equestrian equipment. Their products were so well-regarded that they even supplied equipment for the Boer War, showcasing their reach and reliability in the late 19th century. This early success laid the foundation for a company known for its manufacturing prowess, although in a very different industry. In 1887, James Holden passed away, and his son, Henry James Holden, took the reins. This marked a pivotal moment, setting the stage for Holden’s eventual transition into the burgeoning automotive world.
1917: Holden Ventures into the Automotive Industry
As the world moved into the 20th century, the age of the automobile dawned, and Holden, under the leadership of Henry James Holden, recognized the shifting landscape. In 1917, Holden took its first tentative steps into vehicle production. Instead of manufacturing complete cars, they started by crafting car bodies for imported Chevrolet chassis. This marked Holden’s official entry into the automotive industry, leveraging their existing manufacturing skills for this new mode of transportation. Significantly, Holden became the first company to assemble car bodies for Ford in Australia, demonstrating their early dominance and capability. By 1924, Holden had solidified its position, becoming the exclusive Australian supplier of car bodies for the American automotive giant, General Motors (GM). This partnership with GM would prove to be a defining factor in Holden’s future.
1931: The Merger: General Motors-Holden’s Ltd is Born
The growing relationship between Holden and General Motors culminated in a significant merger in 1931. General Motors Australia merged with Holden to create General Motors-Holden’s Ltd (GM-Holden’s). This merger consolidated their operations and solidified their position in the Australian market. During this era, GM-Holden’s and Ford emerged as the dominant forces in the fledgling Australian automotive industry. This period was crucial for establishing Holden as a major player, backed by the global resources and expertise of General Motors.
1948: “Made in Australia”: The Iconic FX Holden
1948 is arguably the most significant year in Holden’s history. It was the year Holden manufactured the FX 48-215, the first car that was proudly proclaimed “made in Australia, for Australia.” Launched by then Prime Minister Ben Chifley on November 29th, who famously described the FX as a “beauty,” this model became an instant symbol of Australian ingenuity and post-war industrial success. The FX Holden was a resounding success, capturing the hearts of Australians and leading to waiting lists that stretched for almost a year from its initial release. Over its six-year production run, a remarkable 120,402 FX Holdens were manufactured. The 1950s and 1960s witnessed Holden’s continued rise, with the company introducing a series of popular new models that solidified its market leadership and cultural significance.
1980: The Tide Turns: Holden Begins to Struggle
The fortunes of the Holden car company began to shift in the 1980s. The Australian automotive industry as a whole started facing increasing challenges, with growing global competition and evolving consumer preferences. In 1980, Holden made the difficult decision to close its production plant in Pagewood, Sydney, signaling the beginning of a period of restructuring and adaptation. The Australian federal government, recognizing the pressures on the local industry, introduced the “Button car plan.” This plan aimed to rationalize and consolidate the automotive sector by gradually lowering import tariffs, intending to make the industry more competitive on a global scale, but also increasing pressure on local manufacturers like Holden.
2006: Continued Losses and Workforce Reductions at Holden
While the 1990s saw a market surge that provided some respite, the early 2000s brought renewed difficulties for Holden. The company began experiencing significant financial losses. Between 2005 and 2006, Holden’s financial performance deteriorated further, with a combined loss of $290 million. In response to these mounting losses, Holden continued to reduce its workforce. The closure of its third-shift assembly line resulted in the loss of another 1,400 jobs, highlighting the increasingly challenging economic environment for Australian car manufacturing.
2008: The Global Financial Crisis Impacts Holden
The Global Financial Crisis (GFC) of 2008 delivered a severe blow to Holden and its parent company, General Motors. The crisis had a widespread impact on the automotive industry globally, and Holden was particularly vulnerable. The immediate aftermath of the GFC saw Holden announce another 500 job losses in Australia. Simultaneously, General Motors in the US experienced a dramatic decline in exports, plummeting by 86%, underscoring the global scale of the economic downturn and its deep impact on the automotive sector. In 2009, further factory closures, specifically of four-cylinder engine plants, led to yet another 500 job losses at Holden, as the company struggled to adapt to the drastically changed market conditions.
2010: Government Grants and Support
In an effort to support the struggling local automotive industry and maintain jobs, the federal government stepped in to provide financial assistance to Holden. Holden received a substantial $159 million grant from the federal government, specifically earmarked for the production of a local version of the Chevrolet Cruze. The South Australian government also contributed $30 million in support. These grants were intended to help Holden remain viable and competitive in the face of ongoing economic challenges and increasing global competition.
2013: Holden Announces the End of Australian Manufacturing
Despite government support and efforts to restructure, the long-term outlook for Holden’s Australian manufacturing operations remained bleak. In a devastating announcement in 2013, Holden declared its intention to cease all Australian manufacturing by 2017. This decision meant the loss of approximately 2,900 jobs and marked a significant blow to Australian manufacturing. Adding to the industry’s woes, Ford had made a similar departure announcement just months prior, signaling a broader trend of automotive manufacturing decline in Australia.
2017: The Final Curtain: End of Car Manufacturing in Australia
Friday, October 20, 2017, marked a somber day in Australian automotive history. The final shift at Holden’s Elizabeth plant in suburban Adelaide signaled the definitive end of the company’s Australian production line and, effectively, the end of mass car manufacturing in Australia. Around 950 workers at the plant clocked off for the last time, with another 800 having already departed since the 2013 closure announcement. The last car to roll off the production line was a red VFII SSV Redline Commodore sedan, a poignant symbol of the end of an era. A large gathering of former employees and Holden enthusiasts convened at Adelaide Oval to bid farewell, with Australian rock icon Jimmy Barnes performing at a formal send-off, underscoring the cultural significance of Holden to the nation. While approximately 700 Holden employees remained in Melbourne, including designers, engineers, and technical staff, their focus shifted to design and engineering for the Australian market, with no further local manufacturing.
2019: The Commodore Nameplate Retired
In December 2019, General Motors made another significant announcement, quietly revealing that the iconic Commodore nameplate would be retired at the end of 2020 after 42 years of production. Declining sales were cited as the primary reason for discontinuing the Commodore, a model that had once been a best-seller and a symbol of Australian motoring. Interim Holden boss Kristian Aquilina acknowledged the emotional weight of the decision, stating, “The decision to retire the Commodore nameplate has not been taken lightly by those who understand and acknowledge its proud heritage.” This decision further diminished the Holden brand in the Australian market.
2020: The End of the Holden Brand
The final chapter in the Holden story came on February 17, 2020, when General Motors announced the complete end of the Holden brand. Citing the challenges of operating in the “highly fragmented right-hand-drive market” and the need to “retire” the Holden brand by 2021, GM made the momentous decision to withdraw entirely. This closure resulted in approximately 600 of the remaining 800 Holden workers in Australia and New Zealand being made redundant, with the majority losing their jobs by the end of June. A visibly emotional Kristian Aquilina expressed that the company had “chased down every conceivable option” to save the brand, but ultimately deemed it impossible. Australian Prime Minister Scott Morrison reacted angrily, accusing General Motors of allowing the Australian marque to “wither away” despite receiving billions in taxpayer subsidies over the years. The demise of Holden marked the end of an era for the Australian automotive industry and left a significant void in the nation’s cultural and industrial landscape.
