Did General Motors abandon Holden because it didn't fit with its electric vision?

General Motors is betting big on an electric future, announcing its intention to be a tailpipe emissions-free brand in passenger cars by 2035, but could Holden have fit in that picture?

The news comes less than a year after GM pulled the plug on Holden, citing the unfeasibility of right-hand-drive production for small markets like Australia and New Zealand.

It’s now clear that Holden’s passenger car line-up, including the Barina, Commodore and Astra did not fit into GM’s grander plans, which also include being carbon neutral by 2040 across its global portfolio.

GM boss Mary Barra said: “General Motors is joining governments and companies around the global working to establish a safer, greener and better world.

“We encourage others to follow suit and make a significant impact on our industry and on the economy as a whole,” she said.

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Australia clearly doesn’t play into those plans, as one of the few markets in the developed world where EV take-up has remained low thanks to several factors including the lack of incentives and slow roll-out of charging infrastructure.

The unique geography of Australia, where long trips is often necessary, also means EVs with small batteries and limited range remain unfeasible for some customers.

Australia’s Electric Vehicle Council (EVC) called out the government’s lax approach to electric car adoption, with chief executive Behyad Jafari drawing a direct line to Holden’s demise.

“It’s no coincidence that GM decided to pull out of Australia shortly before making this announcement,” he said.

“The rational view for GM to form is that Australia is a low priority nation for its all-electric future.

“Not only are we one of the only countries not to enforce fuel efficiency standards, we are the only nation proposing brand new punitive taxed on electric vehicles instead of incentives.”

Victoria and South Australia recently proposed new tariffs that would slug EV owners with a road-user tax because such vehicles avoid the fuel excise imposed at the bowser on petrol and diesel cars.

“The unimaginative and cynical approach our politicians have taken to electric vehicles in recent years means Australia is being left behind as the rest of the auto industry zooms ahead,” Mr Jafari said.

“On current policy settings we are being left behind as the world accelerates toward electric vehicles.

“GM's announcement underscores how fallacious the argument is that we can sit on our hands and just let the electric vehicle revolution happen to us. Other nations will jump ahead and capture all the benefits of the electric vehicle revolution and Australia will be left languishing decades behind.

“We need our politicians to wake up now and start investing in stimulating and encouraging the transition to electric vehicles before it's too late.”

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However, it’s unlikely that GM would have continued supporting Holden, even if Australia had a more EV-friendly approach to policy, as other factors were at play.

GM will continue producing petrol and diesel engines for its larger vehicles such as SUVs and pick-up trucks but has plans to rollout 30 all-electric models over the next five years including the new GMC Hummer.