Having lost A$152.8 million in 2012, GM Holden is coming off one of its worst years on record. And it isn’t hiding the fact that it’s losing most of its money from manufacturing vehicles in Australia.
“We are losing [money] on our locally produced cars and that’s obviously a position we need to reverse,” said Holden chief financial officer George Kapitelli in a statement. “What the headline numbers today don’t show is the difference between General Motors profitability versus Holden profitability. Holden’s imported portfolio is profitable. The losses we have talked about today are a direct result of Holden building cars in Australia.”
According to Australia’s Daily Telegraph, Holden lost $730 million over six of the past eight years, while making a $202 million profit over the same period. Regardless, the financial guys are keeping calm.
“Holden has zero debt, strong cash reserves … and a very healthy pension fund. I think this is a position that many companies across the world aspire to, but few achieve,” Kapiltelli said. “Despite the loss Holden is well positioned for future profitability, with a strong and healthy balance sheet and zero debt.” So, there’s that.
As part of its upcoming product offensive, Holden will launch the much-awaited VF Commodore, a refreshed Cruze, the Malibu midsize sedan, as well as the Trax subcompact crossover; it has recently launched the new Colorado pickup truck and Colorado 7 SUV (available as the Chevrolet Trailblazer in other parts of the world), and will spend significantly more on marketing this year.