Holden done in by car buyers spoilt for choice - ABC Online

The company has announced it will cease manufacturing operations in Australia by the end of 2017, with a loss of almost 3000 jobs.

So how has a car with such a strong Australian identity and a proud history of models from the FJ to the Kingswood, Monaro and Commodore, lost its attraction for the motoring public?

Motoring commentator David Brown, director of Driven Media, believes one word explains Holden's plight and that word is "diversity", as he told 1233 ABC Newcastle's Craig Zonca.

"We're now doing a lot more diversity in cars," David says.

He explains that in the 1950s and 60s Holden sold more than 50% of cars in the Australian market.

But this year, the top-selling Toyota Corolla has only 3.8% of the market.

And David says of the 300 car "name-plates" in Australia, local car manufacturers have only half a dozen.

Which meant the writing was on the wall for Holden.

"It was inevitable in the immense diversity that there is now in the market," he says.

David says research shows design is a major factor when people are choosing a car, along with price, but adds that "disappointingly and surprisingly" safety doesn't rate as highly when shopping for a vehicle.

The motoring commentator says there's been a movement away from bigger cars, including the Holden Commodore, which has seen a drop in sales.

He says these days even smaller cars make very efficient use of interior space, meaning drivers and passengers don't feel cramped.

David says in public-relations terms, the fact that Holden could be seen as having been "heavied" or pushed into their decision by the Federal Government could mean a more positive perception.

But he says the company has still "got themselves a PR difficulty, a hurdle to jump".

He believes Holden will lose the advantage of being seen as "the Australian car", especially in regional and rural areas.

"It does seem surprising that they should change their mind within the day, but nonetheless it was always touch and go, and clearly I think it's now gone to go," Dave says.