Holden is living through a major sales slump at current, but it’s not all bad news for General Motors’ Australian subsidiary. Car Advice reports top-spec models of the Holden Colorado are driving up profit margins to new heights.
Stefan Jacoby, executive vice president and president of General Motors International, said it’s not always about sales numbers and remarked on the Colorado.
“I wouldn’t say we are not ramping up Colorado volume. It needs more evidence and presence on the road, it can’t ramp up from one night to the other. What is a true evidence of us doing the right thing first of all, is a net sales increase each week. So we are selling at a much higher price point, maybe that’s more important than selling every vehicle we can get,” he stated.
The high margins are also coming from Holden VF Commodore SS-Vs, which are said to be in short supply before production ends later this year.
“We are selling much more LTZs than ever before, much more SS-Vs than ever before. This is much more successful for us than just ramping up volume.”
Despite the high margins, Holden will have a bit of a headache when the final, locally-built Commodore rolls off the production line. The brand will need to capture greater volumes in additional segments to make up for lost, full-size Commodore sales.