Holdens likely to be made in South Korea

Holden production is likely to be shifted to South Korea once General Motors (GM) ceases manufacturing in Australia, ABC News has reported.

Stefan Jacoby, GM’s head of international operations, told reporters that there is a “good likelihood” that Australia will source more cars from South Korea, especially given the impending free-trade agreement between Australia and South Korea, which will cut tariffs on imported Korean cars.

“Korea is producing high-quality cars. It will have a major role in our manufacturing set-up in the region and there is a free trade agreement coming up between Australia and Korea,” Jacoby said.

Holden will stop manufacturing cars in Australia in 2017. The company said there have been a number of factors that contributed to its decision to cease Australian production.