Out with the old, in with the new: Warrnambool's Callaghan Motors replaces Holden

In a sign of the changing automotive industry, Callaghan Motors has bought the Hyundai brand from Warrnambool's Norton Motor Group to replace the iconic Aussie Holden badge, which pulled out of the Australian market this year.

Steve Callaghan said the purchase saved scaling down his workforce and kept his growing 25,000-square metre Raglan Parade site sustainable.

"Forty-five per cent of our business is Holden. I had to think 'OK what have I got to offer my customers if I haven't got Holden?' I needed to give our current Holden customers a broader choice," Mr Callaghan said.

Alongside investments this year in Chinese-brand LDV and US-headquartered Ram Trucks, Mr Callaghan said the South Korean Hyundai badge would make up for lost south-west Holden market share.

"Every dog has their day so to speak, Holden was the flavour 25 years ago, but the world keeps changing," Mr Callaghan said.

He said that last year Hyundai was the third-most popular badge in Australia.

"It's a good fit for our business," he said.

Mr Callaghan will take over servicing Hyundais from September, and continue to stock Mitsubishi, Suzuki and Mercedes-Benz.

Meanwhile, Norton Motor Group owner Marcus Norton said he did not have to replace Hyundai, with his already established Volkswagen line now expanding.

"My workshop here at the moment is booked out for three weeks, I can't get all the work we have through," he said.

"I have had a significant growth spurt in the past with Horsham and Stawell. I'll wait to catch my breath a bit."

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