Australia's entire car manufacturing industry could be on the brink of collapse following Holden's decision to quit local production.
General Motors says Holden will cease building cars in Australia by the end of 2017, with the loss of 2900 jobs at its assembly operations in Adelaide and its engine and engineering plants in Melbourne.
The decision follows Ford's move to end local production by 2016 and could force a similar exit by Toyota, which says there is now "unprecedented" pressure on its own operations.
It will also affect component suppliers and other support industries across the country, with the potential to result in the loss of 40,000 jobs or more.
Holden boss Mike Devereux told workers in Adelaide of the company's plans on Wednesday, following days of speculation and denial.
He said the decision was made by senior GM officials on Tuesday afternoon, hours after his appearance at the Productivity Commission at which he said no decision had been made.
He insisted on Wednesday that he told the truth at the commission.
"Make no mistake, we have looked at every possible option to build our next generation cars here in this country," he told reporters at the Elizabeth plant in Adelaide.
"No matter which way we apply the numbers, our long-term business case to make and assemble cars and engines in this country is simply not viable."
Mr Devereux declined to answer directly questions over the federal government's role in GM's decision or if extra funding, at any level, would have convinced the company to stay on.
"This is a General Motors decision. We have all the information we need to make a conclusion in relativity to the other economies where we can make cars," he said.
"It is more viable to do that in other places than in Australia."
General Motors chief executive Dan Akerson said the strong Australian dollar was one of the factors contributing to the "perfect storm of negative influences the automotive industry faces in the country."
Prime Minister Tony Abbott said there was no way he could gloss over the fact this was "a sad, bad day" for Holden workers, their families and communities.
The government will in coming days release a "considered package" of measures to rebuild confidence in the long-term future of manufacturing and the regions of Adelaide and Melbourne where Holden operates, he told parliament on Wednesday.
"I don't want to pretend to the parliament that this is anything other than a dark day for Australian manufacturing," Mr Abbott said.
Opposition Leader Bill Shorten said Labor was appalled by the government's handling of the crisis, which he likened to a high stakes game of poker.
"A major company who has been building motor cars in this country since after the Second World War has effectively been goaded to give up on this country," the Labor leader told parliament.
In recent days, the federal government had ratcheted up pressure on the company to make a decision on its future, first declaring there was no more money available and then writing to Holden demanding it reveal its hand.
The Commonwealth said Holden's future was ultimately in its own hands but unions and the South Australian government have laid the blame for its closure directly at the government.
"Tony Abbott and his coalition government have turned their backs on this industry and the people in it," SA Premier Jay Weatherill said.
"By cutting funding and, in the past week, by attacking Holden, Tony Abbott and the coalition have forced Holden out of Australia."
Australian Manufacturing Workers Union state secretary Dave Smith said the federal government knew exactly what was required to keep Holden and the automotive industry in Australia.
"The blame for this lies squarely at the foot of the Abbott government," he said.
"It's been the federal government that has made a decision that 50,000 people should be put out of work."
Mr Devereux said Holdens would continue to be sold and serviced in Australia from 2018.
All cars imported into Australia would continue to be badged as Holdens and he was confident the brand would not be damaged.
"We remain committed to being a great part of the automotive culture in this country with the Holden brand, through our dealers, for many, many years to come," he said.
Toyota said it would have to determine whether it could continue operating in Australia.
Holden loss could cause recessions: union
The "devastating" announcement that Holden will cease production in Australia puts 200,000 manufacturing jobs at risk, with Toyota almost certain to follow Holden out of the country, a union says.
The Australian Manufacturing Worker's Union says the three-month-old Abbott government could have saved the industry and its jobs but it decided to ignore it.
"The blame for this lies squarely at the foot of the Abbott government," AMWU national vehicles division secretary Dave said.
He said workers and Holden did everything to try to keep manufacturing cars in Australia.
"It's been the federal government that hasn't played ball, it's been the federal government that has made a decision that 50,000 people should be put out of work."
Mr Smith said Holden's decision to end production at the end of 2017 would be devastating for the Australian economy, as well as South Australia and Victoria.
AMWU national secretary Paul Bastian blamed the government's refusal to offer more assistance to Holden and called on the government to "come clean on its vision for manufacturing."
"It's not just about Holden, it's not just about the 50,000 workers ... in the auto industry," he told reporters in Sydney.
"This is a devastating, catastrophic blow to the manufacturing heartland of this country."
The decision, labelled a "travesty" by Mr Bastian, threatened 200,000 jobs, with Toyota, component suppliers and other adjunct industries also considering their future, he said.
"This will be a blow to economies in South Australia, in Melbourne ... it may even bring on recessions in those states."
Mr Smith went further, saying Toyota looked sure to quit the country.
"It's now highly likely that Toyota will leave Australia. In fact it's almost certain," Mr Smith told reporters outside Holden's head office in Melbourne.
Mr Smith, who was reduced to tears addressing reporters in Melbourne and had to stop briefly to regain his composure, said he was gutted by news of the announcement.
"They're devastated, they loved working in this industry," he said.
"They love building things. That's been taken away from them."
