While Holden’s manufacturing arm continued to operate under a loss, the national sales operations posted good news.
Holden posted a profit of $152.8 million for the year of 2016, marking the second year of profitability for the General Motors’ Australian subsidiary. $27.3 million came from the national sales company operations. Those operations include the import of new models and vehicle sales, underscoring the potential Holden houses in life after local manufacturing.
Speaking of Holden manufacturing, the operations once again operated at a loss through 2016, its final full year of operation. Holden states if manufacturing were to continue past 2017, another $125.6 million in asset depreciation would be expected.
In total, Holden sold 94,308 vehicles in through 2016, giving the brand an eight percent market share in Australian’s crowded and competitive market.
“For the second consecutive year, Holden has recorded a solid profit from our National Sales Company operations. This result highlights the strong profitability of our long-term business plans,” Holden Chairman and Managing Director, Mark Bernhard, said.
“We’re facing challenges as a business and undergoing fundamental changes, there is no sugar coating that. But our consistent financial results highlight the underlying health of the business.
Holden will cease manufacturing operations in Australia this October after decades of local production. Following its factory closings, Holden will become a full national importer of vehicles from various other GM brands. Incoming are the Holden Equinox, Holden Acadia, Holden Astra sedan and Holden NG Commodore, based on the Opel Insignia Grand Sport.