The Holden brand will disappear at the end of the year after its owner General Motors announced it will no longer make cars suitable for New Zealand roads.

American-based General Motors announced on Monday it would stop producing right hand drive vehicles.

The company blamed "significant change globally and locally", which despite implementing "a number of alternative strategies to try to sustain and improve the business", for the ultimate demise of the struggling Holden brand.

GM international operations senior vice president Julian Blissett said it was a difficult decision to finally close the doors at Holden.

"Through its proud 160-year history, Holden has not only made cars, it has been a powerful driver of the industrialisation and advancement of Australia and New Zealand.

"After comprehensive assessment, we regret that we could not prioritise the investment required for Holden to be successful for the long term in Australia and New Zealand, over all other considerations we have globally.

"This decision is based on global priorities and does not reflect the hard work, talent and professionalism of the Holden team."

Holden customers' warranties and servicing offers made at time of sale will still be honoured.

Holden will also provide servicing and spare parts for at least 10 years, through national aftersales networks in Australia and New Zealand.

As required, Holden and its aftersales network will also continue to handle any recalls or safety-related issues if they arise, working with the appropriate governmental agencies.

Late last year the company also announced it would stop selling its most iconic car, the Commodore.

Kristian Aquilina, GM Holden interim chairman and managing director, said despite all the hard work and talent of the Holden family, and the passion of its loyal supporters, it had not "been enough to overcome our challenges".

"Holden will always have a special place in the development of our countries. As Australia and New Zealand grew, Holden was a part of the engine room fuelling that development.

"Today's announcement will be felt deeply by the many people who love Holdens, drive Holdens and feel connected to our company."

Aquilina said it was critical the company worked with all stakeholders to deliver a dignified and respectful wind-down.

Motor Industry Association chief executive David Crawford said he couldn't comment on the Holden announcement specifically or what might happen to dealerships.

However, manufacturers were facing greater costs to meet more stringent safety and environmental standards. Holden was operating in a regional market that was getting smaller.

Other manufacturers were facing similar challenges.

''In the next decade there will be rationalisation of brands and mergers to keep as profitable businesses,'' said Crawford.