General Motors plans to shut last plant in Australia

General Motors's Holden unit, Australia's largest carmaker, said it would close production lines in 2017 after 69 years, joining Ford in exiting an economy struggling with high costs and a strong currency.

About 2,900 employees will lose their jobs, according to a statement released hours after GM said Dan Akerson will step down as chief executive officer.

Holden's departure may drive out the last remaining carmaker Toyota and further damage a manufacturing sector that has shrunk to 7.1 per cent of Australia's economy from 29 per cent in 1960.

Competition from imports, a fragmented domestic car market, high costs and the strength of the dollar had created a “perfect storm of negative influences” for Australia’s car industry, Mr Akerson said in a statement on Holden’s website. – (Bloomberg)