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As the one of three local manufacturers of automotive vehicles, GM Holden occupied about 12.8% market share which is the second largest carmaker in Australia. Their local brand vehicle- Holden Commodore series has remained Australia’s bestselling car in 2010 for the 15th year in a row. In spite of tremendous results the company made, a sudden strike of global economic crisis and bankrupt of their foreign parent company General Motors resulted that Holden is facing huge challenges for their own survival. Recently, Holden claimed that the future of locally designed and manufactured vehicles is unsure which caused more negative influences for Australia local automotive market.

In this report, the first section will determine the situation of the Australian automotive manufacturing industry. And in the second section, the state of Holden will be debated comprehensively. In the last part, it will focus on Holden’s future with its parent company and the outlook of Holden’s local design and manufacture vehicles.

The State of the Australian Automotive Manufacturing Industry
In the last five years, Australian automotive manufacturing industry continued the trend of shrinking. On the basis of Australia Autos Report (2011), the new car sales from 2008 to 2009 dropped about 7.4%. Although the total sales in 2010 recovered about 10.5%, with the slower economic growth and unclear policies of carbon tax, Australia new car sales were down by 5.9% in the January-July period. Also, the analysts believed that the whole year sales will reduced by 3% finally. In the domestic market, the sales have fallen significantly down about 41% from 2005 to 2010 (Australian Government Department of Innovation Industry, 2011). Moreover, the data showed that Australia auto production in the finical year of 2011 decreased about 13%. Consequently, the local vehicle manufactures and…...

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