Holden has confirmed that it will cease manufacturing in Australia by 2017, saying it expected the move would cost 2900 jobs.

In a statement, the company said it would "transition to a national sales company in Australia and New Zealand".

Head of GM Holden in Australia, Mike Deveraux speaks at a press conference at the Holden manufacturing plant at Elizabeth, Adeleaide, South Australia. Credit:Kate Geraghty

Holden will "discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017", the statement says.

"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 the statement.