GM Joins Ford in Exiting Australia

General Motors Co. says it will close down its Holden vehicle and engine production in Australia by the end of 2017, idling some 2,900 workers.

GM's announcement comes seven months after Ford Motor Co. said it will shutter its factories in the country in 2016. Toyota Motor Corp., the only other local carmaker, says the departure of the two companies hurts the supply bases and creates "unprecedented pressure" on its ability to continue in Australia.

The Holden phase-out will close GM factories in Elizabeth and Victoria and significantly reduce engineering activities. The Holden brand will continue in Australia and New Zealand beyond 2017 through a national sales company, national parts distribution center and design office, according to the company.

GM says its decision was driven by four negative influences: high production costs, a shrinking market, the strong Australian dollar and what it describes as the world's most competitive and fragmented automotive marketplace.

Pre-tax charges associated with the four-year pullout will begin with $400 million-$600 million in the current quarter, the company adds.