The Holden Car Company holds a special place in the heart of Australia, a brand deeply intertwined with the nation’s history and identity. From its humble beginnings as a saddlery in the 19th century to becoming a dominant force in the Australian automotive industry, Holden’s journey is a fascinating tale of innovation, success, and eventual decline. This article delves into the complete history of the Holden car company, tracing its evolution and legacy.
1856: The Saddlery Origins of Holden
The story of Holden begins in 1856, not with cars, but with horses. James Alexander Holden established his saddlery business in Adelaide, South Australia. In its early years, Holden & Co. quickly gained a reputation for quality craftsmanship, producing horse saddles, harnesses, and other equestrian equipment. The company even played a role in supplying equipment for the Boer War, showcasing its early manufacturing capabilities. James Alexander Holden laid the foundation for a business built on quality and reliability, values that would later be crucial to the Holden car company.
Alt text: Joyce Lee Lewes and Audrey Eager pose with the first Holden car from the General Motors-Holden Pagewood plant in Sydney, late 1940s.
In 1887, a pivotal moment arrived when James Alexander Holden passed away, and his son, Henry James Holden, took the reins of the family business. This transition marked the beginning of Holden’s shift towards the automotive world, setting the stage for its future as a leading car manufacturer in Australia.
1917: Holden’s Entry into the Automotive Industry
As the world transitioned from horse-drawn carriages to automobiles, Holden astutely recognized the changing times. In 1917, Holden took its first significant step into the automotive sector. The company began manufacturing car bodies for imported Chevrolet chassis, marking its initial foray into vehicle production. This move was a strategic pivot, leveraging Holden’s existing manufacturing expertise to enter a burgeoning industry.
Holden quickly established itself as a key player in the early Australian automotive scene. It became the first company to assemble car bodies for Ford in Australia, demonstrating its growing capabilities and reputation. By 1924, Holden’s expertise was recognized by the US-based giant General Motors (GM), leading to an exclusive agreement for Holden to become the sole supplier of car bodies for General Motors in Australia. This partnership was a crucial turning point, setting the stage for a deeper collaboration in the years to come.
Alt text: Vintage General Motors Holden advertisement showcasing classic car design and Australian automotive heritage.
1931: The Merger of General Motors Australia and Holden
The deepening 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 formative period for the automotive industry in Australia, GM-Holden’s and Ford emerged as the dominant forces, shaping the landscape of car manufacturing and sales for decades.
Alt text: Australian High Commissioner Sir Eric Harrison examines 1958 Holden sedans at Australia House, London, highlighting Australian automotive export.
1948: “Made in Australia” – The First Holden Car
1948 marked a watershed moment in Australian automotive history and for the Holden car company. Holden achieved its long-held ambition of producing a fully Australian-made car. The Holden FX 48-215 was launched, proudly proclaimed as “made in Australia, for Australia.” This car was not just assembled in Australia; it was designed and manufactured locally, representing a significant leap for the nation’s industrial capabilities.
The launch of the FX Holden was a national event. Labor Prime Minister Ben Chifley officially launched the car on November 29th, famously describing the FX as “a beauty.” His enthusiastic endorsement reflected the national pride and excitement surrounding this Australian-made vehicle. The FX Holden’s success was immediate and overwhelming. Demand far outstripped supply, leading to waiting lists that stretched for almost a year from its initial release. Over its six-year production run, an impressive 120,402 FX Holden cars were manufactured, cementing its status as a national icon. The 1950s and 1960s witnessed Holden’s continued rise to prominence, with the company introducing a string of successful new models and further solidifying its market leadership.
Alt text: Robert Webb and his four sons with their 1959 Holden ute in rural NSW, illustrating Holden’s popularity in Australian families and regional areas.
1980: The Onset of Challenges for Holden
The landscape began to shift for the Holden car company in the 1980s. The Australian automotive industry as a whole started facing increased pressures. Holden closed its Pagewood production plant in Sydney in 1980, a sign of the growing challenges. The federal government responded by introducing the Button car plan, aimed at rationalizing and consolidating the automotive industry through lowered import tariffs. While intended to make the industry more competitive, this plan also intensified competition and pressure on local manufacturers like Holden.
Alt text: A classic Holden car parked in front of a bungalow in Invermay, Tasmania, symbolizing Holden’s enduring presence in Australian suburban life.
2006: Continuing Losses for Holden
Despite a market surge in the 1990s, the early 2000s brought renewed difficulties for Holden, leading to significant financial losses. Between 2005 and 2006, Holden experienced combined losses of $290 million. In response to these financial pressures, the company continued to reduce its workforce, cutting 1,400 jobs after closing its third-shift assembly line. This period marked a significant downturn for Holden, highlighting the increasing challenges it faced in a rapidly changing global automotive market.
Alt text: The 2001 Holden Monaro, a revival of a classic model, representing Holden’s attempts to innovate and reconnect with its heritage.
2008: The Global Financial Crisis Impacts Holden
The Global Financial Crisis (GFC) of 2008 delivered a further blow to Holden and its parent company, General Motors. Holden faced another round of job cuts, with 500 more positions lost in Australia. Simultaneously, General Motors in the US experienced a dramatic decline in exports, plummeting by 86%. The crisis deepened in 2009 with the closure of four-cylinder factories, resulting in another 500 job losses at Holden. The GFC underscored the interconnectedness of the global automotive industry and the vulnerability of companies like Holden to worldwide economic shocks.
Alt text: A high-performance Australian VT GTS Holden Commodore, showcasing Holden’s performance and sports car division.
2010: Government Support for Holden
In an effort to support the struggling automotive manufacturer, the federal government provided Holden with a $159 million grant. This funding was specifically allocated for the production of a local version of the Chevrolet Cruze, hoping to boost local manufacturing and secure jobs. The South Australian government also contributed $30 million, further highlighting the significance of Holden to the Australian economy and the efforts to keep it viable.
Alt text: New Holden cars parked at the Elizabeth manufacturing plant in Adelaide in 2013, reflecting the scale of Holden’s operations before its closure announcement.
2013: Holden Announces the End of Australian Manufacturing
Despite government support and efforts to innovate, Holden announced in 2013 a decision that would profoundly impact the Australian automotive industry and mark the beginning of the end for local manufacturing. Holden declared it would cease all Australian manufacturing operations by 2017, a move that would result in the loss of 2,900 jobs. This announcement came just months after Ford had also declared its departure from Australian manufacturing, signaling a broader trend and a significant blow to the nation’s industrial base.
Alt text: Holden badges displayed on a historic vehicle at a press conference announcing Holden’s closure, symbolizing the end of an era for the Australian car company.
2017: The End of Car Manufacturing in Australia
Friday, October 20, 2017, marked a somber day for Australian industry. The final shift at Holden’s Elizabeth plant in suburban Adelaide concluded the company’s Australian production line. It was the last day of work for approximately 950 employees at the plant, with another 800 having already left 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 gathering of thousands of former employees and Holden enthusiasts assembled with the departing workers at Adelaide Oval for a formal send-off. Australian rock icon Jimmy Barnes performed at the event, adding to the emotional farewell. While manufacturing ceased, approximately 700 Holden employees remained in Melbourne, including designers, engineers, and technical staff, tasked with designing cars for the Australian market, indicating a continued, albeit reduced, presence.
Alt text: A Holden Kingswood, one of Holden’s most iconic models, representing the brand’s legacy and contribution to Australian motoring history.
2019: GM Discontinues the Commodore
In December 2019, General Motors made a quiet but significant announcement: after 42 years of production, the iconic Commodore model would be discontinued at the end of 2020 due to further declining sales. Kristian Aquilina, interim Holden boss, acknowledged the 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.” The discontinuation of the Commodore, a nameplate synonymous with Holden and Australian motoring, signaled a further diminishing of the brand’s presence.
Alt text: The final Holden Commodore produced at the Elizabeth plant in Adelaide in October 2017, marking the end of Commodore production and Australian car manufacturing by Holden.
2020: The Final Demise of Holden
The final chapter in the Holden story arrived on February 17, 2020, when General Motors announced the complete end of the Holden brand. GM cited the decision to exit the “highly fragmented right-hand-drive market” and “retire” the Holden brand by 2021. This meant approximately 600 of the remaining 800 Holden workers in Australia and New Zealand would be made redundant, with the majority losing their jobs by the end of June.
A visibly emotional Kristian Aquilina addressed reporters, stating the company had “chased down every conceivable option” to avoid the brand’s closure, comparing it to “trying to find a way to defy gravity.” However, this explanation did little to appease Australian Prime Minister Scott Morrison, who strongly criticized the US car giant, accusing them of allowing the Australian marque to “wither away” despite receiving billions in taxpayer subsidies. The closure of Holden marked the definitive end of an Australian icon, leaving behind a rich legacy in the nation’s automotive history and cultural memory.
