A report from the Australian Financial Review states that the American car giant is in talks with UK-based vehicle importer Inchcape, which already handles the distribution of Subaru , Peugeot and Citroen in Australia.

General Motors is in the middle of a downsizing program, recently announcing plans to close five factories in the US and lay off more than 1400 employees. This follows the company’s decision to shut down its European Chevrolet operation and sell the German-based Opel brand to French car maker PSA Group - makers of Peugeot and Citroen vehicles - in 2017.

At the time of the Opel sale, General Motors reaffirmed its commitment to retaining the Holden brand, but since thenthe company has made several management changes, including installing former Holden chairman Mark Reuss as president of the General Motors Company.

In response to the report, Inchcape head office issued the following statement, which didn’t confirm or deny the potential sale: “We are always assessing a range of opportunities and initiatives in support of our Ignite strategy and we do not comment on speculation.”

Holden also issued a statement playing down the report, instead focusing on the work the brand has done to reinvent itself as a fully-imported offering in the wake of local manufacturing closing.

However, there is no escaping the Holden brand is in a state of steady decline. Sales have been dropping for eight years, with the former number one brand starting 2019 as only the seventh best-seller in January.

That consistent decline saw the hiring of new CEO Dave Buttner (pictured) to try and turn the brand’s fortunes around. The executive previously led Toyota to its current dominant position at the top of the Australian market, knocking off Holden.

The GM statement read: “Under the leadership of Dave Buttner, who was appointed in August last year, we are turning around the Holden business, growing sales, re-engaging and re-energising our distribution network and launching exciting vehicles like the all-new Acadia. We are fully focused on supporting Dave in building a strong Holden for the future, as it remains an important part of GM's business.”

Taking over Holden distribution would potentially more than double Inchcape’s sales in Australia. In 2018 Holden sold 60,751 cars while combined Subaru, Peugeot and Citroen managed 53,347 sales.

Long-term, the connection between Opel and PSA creates a link for Inchcape to sell Opel-developed vehicles in Australia wearing the Holden badge, something already done with the Commodore and Astra models.

General Motors purchased the Holden brand, which began as a saddlery business in 1856 and moved into cars in 1908, in 1931 and renamed in General Motors-Holden Ltd.