General Motors said it would end vehicle and engine manufacturing in Australia by the end of 2017, dealing a severe blow to the country's auto sector.
The world's second-largest auto maker said it was closing its Holden plants in South Australia and Victoria states, affecting 2,900 jobs.
The decision comes after months of speculation and debate about GM's future in Australia and after the government on Tuesday demanded the company end the uncertainty about its future.
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"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," GM Chairman and CEO Dan Akerson said in a statement.