The Holden Car Company holds a significant place in Australian history, evolving from its humble beginnings as a saddlery to becoming an iconic automotive manufacturer. For over a century, Holden vehicles were a staple on Australian roads, embodying the spirit of innovation and national pride. This is the story of the Holden Car Company, its journey, its triumphs, and its eventual departure from the automotive landscape.
From Saddles to Spark Plugs: The Genesis of Holden
The Holden story began in 1856 when James Alexander Holden, an English immigrant, established a saddlery business in Adelaide, South Australia. Initially focused on crafting high-quality horse saddles, harnesses, and equestrian equipment, J.A. Holden & Co. quickly gained a reputation for excellence and reliability. Their products were even utilized during the Boer War, showcasing the company’s early commitment to quality and durability.
In 1887, a pivotal moment arrived as James Alexander Holden passed away, and his son, Henry James Holden, took the reins of the family enterprise. This transition marked the beginning of Holden’s gradual shift towards the burgeoning automotive industry. Recognizing the changing times and the potential of motorized transport, Henry James Holden began steering the company towards vehicle body manufacturing, setting the stage for Holden’s future as a car manufacturer.
Two women, Joyce Lee Lewes and Audrey Eager, stand proudly before the first Holden car produced at the General Motors-Holden Pagewood plant in Sydney during the late 1940s, symbolizing the dawn of Australian automotive manufacturing.
Embracing the Automobile: Holden’s Entry into Vehicle Production
The year 1917 marked Holden’s official entry into the automotive world. The company began producing car bodies for imported Chevrolet chassis, demonstrating their manufacturing capabilities and adaptability. Holden quickly established itself as a key player in the early Australian automotive scene. Notably, Holden became the first company in Australia to assemble car bodies for Ford, further solidifying their position in the industry. By 1924, Holden had become the exclusive supplier of car bodies in Australia for the American automotive giant, General Motors (GM), a partnership that would profoundly shape Holden’s destiny.
A vintage General Motors Holden advertisement showcases the early marketing and branding efforts of the newly formed automotive company in Australia.
The Merger and Rise to Dominance: General Motors-Holden’s Ltd.
A significant turning point arrived in 1931 when General Motors Australia merged with Holden, creating General Motors-Holden’s Ltd. This merger combined GM’s global automotive expertise with Holden’s established Australian manufacturing presence, forging a powerful entity in the Australian market. During this era, General Motors-Holden’s and Ford emerged as the dominant forces in the burgeoning Australian automotive industry, shaping the landscape of car manufacturing and sales for decades to come.
Sir Eric Harrison, the Australian High Commissioner in London, examines the first shipment of 1958 Holden sedan cars arriving at Australia House, London, in December 1958, highlighting Holden’s growing international presence and Australian manufacturing prowess.
“Made in Australia”: The Iconic FX Holden
1948 is etched in Australian automotive history as the year Holden unveiled the FX 48-215, the first car proudly proclaimed as “made in Australia, for Australia.” Launched by then Prime Minister Ben Chifley on November 29th, who famously lauded the FX as a “beauty,” this model resonated deeply with the Australian public. The FX Holden was not just a car; it was a symbol of post-war Australian ingenuity and industrial capability. Its immense popularity resulted in waiting lists stretching for almost a year after its initial release. Over its six-year production run, an impressive 120,402 FX Holdens were manufactured. The 1950s and 1960s witnessed Holden’s continued ascent, marked by the introduction of numerous new models that captured the hearts of Australian drivers.
Robert Webb poses with his four sons and their 1959 Holden utility vehicle (ute) in Dappo, near Narromine, NSW, illustrating the Holden ute’s integral role in Australian rural life and family transport during the mid-20th century.
Challenges and Restructuring: Holden’s Struggle in the 1980s
The 1980s brought about a shift in Holden’s fortunes. Australia’s automotive industry began facing increasing challenges due to globalization and evolving market dynamics. In 1980, Holden closed its production plant in Pagewood, Sydney, signaling the beginning of a period of restructuring. The Australian federal government responded by introducing the “Button car plan,” an initiative aimed at rationalizing and consolidating the automotive industry through measures like lowering import tariffs, hoping to enhance competitiveness.
An older model Holden car sits in front of a bungalow in Invermay, Tasmania, perhaps reflecting the aging car parc and increasing competition faced by Holden in later decades.
Economic Fluctuations and Continued Losses: The 2000s
While the 1990s saw a market resurgence for Holden, this momentum waned in the early 2000s, leading to significant financial losses. Between 2005 and 2006, Holden’s financial performance deteriorated further, culminating in a combined loss of $290 million. In response to these economic pressures, the company continued to reduce its workforce, eliminating 1,400 jobs after ceasing operations at its third-shift assembly line.
The newly launched Holden Monaro in 2001, the first Monaro model released in approximately 25 years, representing Holden’s attempts to revive iconic models and appeal to nostalgia amidst financial difficulties.
The Global Financial Crisis and Further Setbacks: 2008
The Global Financial Crisis (GFC) of 2008 dealt a severe blow to Holden and its parent company, General Motors. Holden faced another round of job cuts, with 500 more positions eliminated in Australia. Simultaneously, General Motors in the US experienced a dramatic 86% decline in exports, highlighting the widespread impact of the economic downturn. In 2009, further restructuring led to the closure of four-cylinder engine factories and an additional 500 job losses at Holden.
An Australian VT GTS Holden Commodore sports car, produced by Holden’s performance division, represents the high-performance vehicles that Holden continued to develop despite economic challenges.
Government Intervention and the Inevitable End: 2010-2020
In 2010, the Australian federal government provided Holden with a $159 million grant to support the local production of a version of the Chevrolet Cruze. The South Australian government also contributed $30 million in financial assistance. However, these interventions proved insufficient to reverse the long-term trends.
Unsold new Holden cars parked at the Elizabeth manufacturing plant in Adelaide in 2013, possibly foreshadowing the impending closure announcement and the challenges faced by Australian car manufacturing.
By 2013, Holden made the momentous announcement that it would cease all Australian operations by 2017, resulting in the loss of 2,900 jobs. This announcement followed a similar decision by Ford months earlier, underscoring the broader challenges facing Australian automotive manufacturing. On October 20, 2017, the final shift at Holden’s Elizabeth plant marked the end of Holden’s Australian production line and the end of car manufacturing in Australia as a whole. A red VFII SSV Redline Commodore sedan became the last car to roll off the assembly line, a poignant symbol of an era coming to a close. Despite the manufacturing closure, approximately 700 Holden employees remained in Melbourne, focusing on design and engineering for the Australian market.
A Holden badge displayed on a classic car during a press conference about the closure of Holden outside Old Parliament House in Canberra in 2017, representing the end of an Australian icon and era.
In December 2019, GM further announced the discontinuation of the iconic Commodore model after 42 years of production, citing declining sales. Finally, on February 17, 2020, General Motors declared the complete end of the Holden brand by 2021, citing the challenges of the “highly fragmented right-hand-drive market.” This decision led to the redundancy of approximately 600 of the remaining 800 Holden employees in Australia and New Zealand. The closure of Holden marked the definitive end of an Australian automotive icon, leaving behind a rich legacy and a complex history.
A Holden Kingswood, one of the company’s most celebrated and recognizable models, representing the brand’s long history of producing popular family cars in Australia.
The final Holden Commodore, a symbol of the end of Australian car manufacturing, rolls off the production line at the Elizabeth plant in Adelaide in October 2017, marking a historic and somber moment.
A Lasting Legacy
The Holden Car Company’s story is a microcosm of Australian industrial history, reflecting periods of growth, innovation, and ultimately, decline in the face of global economic shifts. From its origins as a saddlery to its reign as Australia’s leading car manufacturer, Holden left an indelible mark on Australian culture and society. While the brand is no longer producing vehicles, the legacy of the Holden Car Company endures in the memories of generations of Australians and in the numerous classic Holden vehicles still cherished by enthusiasts today.
