SA Holden dealers here to stay

South Australian Holden dealers have united to allay fears they will close their doors when manufacturing ends at Elizabeth in 2017.

The group, comprising 25 regional and metropolitan dealerships, have launched a major advertising campaign to set the record straight about their long term future. City Holden dealer principal and Adelaide Holden Dealer Council chairman Julian Newton said that in the year since Holden announced it would be closing production in Australia, a public perception had grown that the Holden dealer network would also close.

"Nothing could be further from the truth," he said. "While Holdens will no longer be manufactured in Australia, Holden dealers will continue to sell Holden products from General Motors' global network. Genuine Holden spare parts will continue to be available, factory warranties will continue to be honoured and Holden servicing will continue into the future."

"In fact, we are already offering extended warranties well beyond the 2017 local manufacturing closure date." Mr Newton said the dealership network felt the need to invest in a major campaign to educate customers and the public about their long-term future in the state.

"I have been shocked that some people actually believe that Holden dealers will be closing their doors once Holden production in Australia ceases," he said. "People only have to look at what happened when other major car manufacturers ceased production in Australia.

"In every case dealer networks remained in Australia selling imported vehicles. Holden will be no different." General Motors announced last December it would end manufacturing at Elizabeth in 2017 after more than 60 years.

The company's inability to establish large export volumes, especially in a time of a strong Australian dollar and production costs that are high by world comparison, prompted GM to announce the closure decision.

Mr Newton said around 60-70 per cent of cars currently sourced by Holden dealers were imported from overseas markets. "Our product will continue to come out of places like Europe, the US and Korea," he said. 'There's nothing coming out of China - there's been a bit of scaremongering that the next Commodore will be coming out China but that's not true. We don't want to lose the current Commodore but vehicles in the future will be better - features will include more advanced technology and more advanced fuel economy.

"We believe we'll have the best portfolio ever post local manufacturing."Mr Newton said the Holden dealership network employed more than 1000 South Australians and contributed $170 million towards the state's economy during the past 12 months.