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Holden workers moments after hearing the announcement that the Holden manufacturing plant in Elizabeth a suburb of Adelaide, South Australia, will be closing in 2017. Photo: KATE GERAGHTY

"We are completely dedicated to strengthening our global operations while meeting the needs of our customers," said GM Chairman and CEO Dan Akerson. "The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world."

Mr Hockey said it was "no surprise" that Holden was leaving and wondered why Labor had not shown similar outrage when Mitsubishi and Ford left Australia.

industry in Australia."

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Treasurer Joe Hockey said the government would do what it could to work with unions and the governments of South Australia and Victoria to help the workers "transition" and prepare for losing their jobs when Holden leaves Australia in 2017.

Acting Opposition Leader Tanya Plibersek accused the government of getting "exactly what it wanted" with Holden announcing its departure.

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Holden workers moments after hearing the announcement that the Holden manufacturing plant in Elizabeth a suburb of Adelaide, South Australia, will be closing in 2017. Photo: KATE GERAGHTY

Amid booing from Labor MPs, who blame Holden's departure on the coalition's refusal to give more government funding to the carmarket, Mr Truss told Parliament that "like all members in the house, we regret the fact that GM is to phase down its operations in this country."

Holden workers moments after hearing the announcement that the Holden manufacturing plant in Elizabeth a suburb of Adelaide, South Australia, will be closing in 2017. Photo: KATE GERAGHTY

Mr Macfarlane said Labor MPs had immediately degenerated to "raw politics" when Holden factory workers were going through an "extraordinarily traumatic time".

The letter sent by Mr Truss on Tuesday to Mr Devereux was "designed for political consumption rather than being a genuine effort to communicate," Ms Plibersek said.

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"This has been a difficult decision given Holden's long and proud history of building vehicles in Australia," said Holden chairman and managing director Mike Devereux. "We are dedicated to working with our teams, unions and the local communities, along with the federal and state governments, to support our people."

"Hasn't the government got exactly what it wanted and won't Australia's workers pay for their failure?"

The move ends weeks of intense speculation and years of uncertainty surrounding the General Motors' owned brand's Adelaide production line and Victorian engine plant from the company that was formed in 1856 and first started manufacturing cars locally in 1948.

"Not one word of sympathy from the members opposite," Mr Macfarlane said. "Not one word of, "We'll cooperate with what the government puts in place to ensure the industry and economic diversity of Adelaide is continued."

Holden released a statement New Balance Womens Runners saying it would "transition to a national sales company in Australia and New Zealand" from 2017, citing the strong Australian dollar, high production costs and the competitive local market for the decision.

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Labor asked the Industry Minister Ian Macfarlane why the Abbott government cut $500 million from automotive funding.

"It's meant a great deal to Australians over several generations," Mr Truss said. "Many of us have had the pleasure of travelling and owning Australian built Holdens and it is a pity that that will not continue into the future.

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VIDEO: John Camillo of the Australian Manufacturing Workers Union says Holden's move will have 'devastating' consequences for South Australia.

Sixty five years after it first began producing cars in Australia, Holden has confirmed it will cease local manufacturing in 2017.

Holden workers moments after hearing the announcement that the Holden manufacturing plant in Elizabeth a suburb of Adelaide, South Australia, will be closing in 2017. Photo: KATE GERAGHTY

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The iconic manufacturer will stop producing vehicles in Australia after 65 years.

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"Now this government had indicated right from the very beginning that we wanted Holden to remain manufacturing cars in Australia. "We've wanted," he continued, over loud jeers, "we want to have a strong and active motor vehicle manufacturing New Balance Orange Boots

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About 2900 Australian jobs will be "impacted" over the next four years as a result of General Motors' decision, the company said in a statement. This will comprise 1600 jobs from the Elizabeth vehicle manufacturing plant and about 1300 from Holden's Victorian workforce.

the struggling automotive industry, which has warned of upwards of 50,000 job losses.

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Acting Prime Minister Warren Truss confirmed he had spoken with Holden's Australian boss Mike Devereux about 10 minutes before Question Time, when he informed Mr Truss that the decision had been taken at the company's headquarters in Detroit.

´╗┐Holden to end local manufacturing

"Holden has been an iconic. brand for Australians, a part of our heritage," said Mr Truss, who is standing in for Tony Abbott who has been in South Africa for Nelson Mandela's memorial.

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