What does Holden's axing mean for customers?

Here’s how the closure of Holden brand in Australia will affect thousands of Holden owners

Holden closure 2020

Even though the Holden brand’s fortunes have been waning over the last few years, more than 200,000 Australians have bought a Holden product since the beginning of 2017.

How does the decision affect the owners of Colorados, Commodores, Astras and Equinoxes?

Why is Holden leaving Australia?

The brand’s parent company, General Motors, has made the decision to leave the Australian and New Zealand markets because it wasn’t selling sufficient cars to make a viable business case for the business to go on.

It’s a complete closure, too, with production of Thai-built Holdens ceasing and the Lang Lang proving ground to be sold as well.

Some 800 workers stand to lose their jobs.

Holden Port Melbourne

What will happen to Holden dealerships?

Most of the 180 Holden dealers in Australia multi-brand entities, but the 18 or so standalone dealerships will not have new cars to sell from the middle of this year. The service departments could still ostensibly operate as standalone operations.

Holden says it will establish a national aftersales network to support existing customers for at least the next 10 years. All current Holden dealers, meanwhile, will be offered the opportunity to transition to Holden authorised service outlets.

Is my Holden still covered by warranty if the company goes out of business?

Yes. Australian consumer law requires that a brand supports its products for at least seven years, while General Motors – the parent company of Holden who are behind the closure – have stated that it will extend warranty and service support for 10 years.

“Holden will honour all existing warranties and guarantees, as well as all free scheduled servicing offers,” reads a statement.

As well, customers don’t have to service their Holdens at a Holden dealership to guarantee warranty coverage.

Can I still buy a new Holden?

Holden says its dealerships will continue to sell cars “while stocks lasts”. These include new Holdens, used cars and demonstrator vehicles. New car manufacturing will end by June, including Thai-built cars like the Colorado and Trailblazer.

Holden Colorado

What happens if there is a Holden recall?

“Holden and its aftersales network will continue to handle any recalls or safety-related issues if they arise, working with the appropriate governmental agencies,” says the company.

What happens if I’ve ordered a new Holden?

If you have a Holden on order, your best bet is to contact your dealership directly. Australian consumer rights are enshrined in federal law, so if you’re looking to get out of a Holden purchase, you will have a good case.

As mentioned, Holden will support all new car sales made from today for the life of the warranty, and with spares and support until 2031.

What happens to my Holden resale value?

There’s no getting around it… if you currently own one, a Holden’s resale value will now be a lot worse than it was than when you bought it. However, Holden resale values have been depressed for some time, so it’s not a big a fall as it could have been.

Our advice would be to run the car as long as possible because it will be cheaper, in the long run, to ‘use up’ the vehicle before trading it in.


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