General Motors to stop making cars in Australia by 2017

General Motors Co said on Wednesday that it will stop making cars and engines in Australia by the end of 2017, with nearly 2,900 jobs to be lost, because of high production costs and competition. The decision could spell the end of car manufacturing in Australia as the industry will be too small for supporting businesses such as parts makers to remain economic.

Toyota Motor Corp. announced it is reassessing its future in Australia. A union said 50,000 jobs in the auto parts industry are also in jeopardy. GM's Australian subsidiary Holden once dominated Australian auto sales, but lost market share to imported cars. Ford Motor Co, once Holden's major rival in Australia, announced in May that it was ending production in the country in 2016.