Bernhard to Oversee GM Holden Production Phaseout

Returning managing director Mark Bernhard

Australian Mark Bernhard is returning to GM Holden as chairman and managing director just as workers say up to 500 jobs at the General Motors subsidiary’s doomed Australian plant will be lost in the next few months.

Stefan Jacoby, GM executive vice president and president-GM International Stefan Jacoby, says Bernhard’s background and experience makes him the right person to lead GM Holden.

Bernhard began his career in the automotive industry at GM Holden in 1986, undertaking senior finance roles across GM’s global operations, over the past four decades. He is a former chief financial officer of GM Holden and now is vice president and chief financial officer of Shanghai GM.

“He will champion the ongoing transition of GM Holden to a national sales company and the repositioning of the Holden brand for long-term growth and profitability,” Jacoby says in a statement.

The Australian subsidiary’s South Australian assembly plant is to be shuttered at the end of 2017.

Bernhard, who made a quick visit to Australia Feb. 6 to speak with GM Holden dealers, will take up his new role in the third quarter this year. He will succeed GM Holden Interim Managing Director and CFO Jeff Rolfs, who will continue his role as CFO.

Jacoby says GM is investing significantly to broaden the GM Holden product portfolio and a major new vehicle-launch program will deliver 24 major new vehicles and 36 new powertrain combinations over the next five years.

“Holden is accessing GM’s global operations to assemble its biggest and best ever product lineup,” he says. “This new model onslaught will ensure Holden has world-class products in every major segment – a true customer-driven product strategy.

“Holden will debut an all-new Barina Spark in the first quarter of 2016, launch a global Captiva replacement and another all-new, world-class SUV to ensure comprehensive offerings in the crucial SUV market segment.”

But News Corp. Australia says plunging sales of the Cruze sedan will see a major production cut and extensive layoffs at the Elizabeth plant.

Workers tell the newspaper group up to 500 of 1,600 jobs at Elizabeth are earmarked for elimination within the first quarter of this year, likely in March when an Australian Manufacturing Workers Union official says a rerate of the production line is scheduled.

GM Holden has a A$14 million ($10.1 million) retraining fund to assist laid-off workers. Each employee can access up to A$2,000 ($1,560) for training courses and the rest of the money will be used on counseling, resume writing and job-interview assistance.

“Our overriding goal is to manage the scaling-down of manufacturing between now and 2017 in a way that treats our employees with respect as they leave the company, and gives them the best chance at gaining future employment,” GM Holden says in a statement.