Holden Announces $518M Loss For 2013
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Holden, the Australian arm of General Motors that in recent months announced that it would cease manufacturing in Australia within a few years, has announced an after-tax loss of more than $518 million (US). This is even after than the $80+ million in government assistance.
The bad news should not be a surprise, as Holden announced in December 2013 that it expected heavy losses due to the decrease of asset values.
Jeff Rolfs, CEO of Holden, says strong sales were countered by the December 11 decision to move production off the mainland. “Clearly there are significant costs associated with our decision to cease domestic manufacturing of vehicles in Australia by the end of 2017 …. These costs drove the financial loss for Holden in 2013.”
Holden’s total sales fell by 2.3 per cent to 112,059 vehicles in 2013 and sales of locally manufactured models dropped by 17.1 percent, according to Drive.com.au.
“We are mindful of the impact on our employees and our financial results, but it was the right decision,” Rolfs added. “Manufacturing vehicles in Australia is, unfortunately, unsustainable.”
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