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.
Comments
The ‘Holden’ brand simply MUST be retired to history, perhaps progressively at first, but in anycase without undue delay, after Australian Holden manufacturing comes to an end in October this year (2017).
General Motors needs to become a truely international company in the same way that Ford, BMW and Mercedes Benz already are. It’s nothing short of poor management to continue supporting the very limited brand name Holden which globally has no where near the following that the Pontiac and Oldsmobile had and both of these brands have been killed off.
The Holden brands relevance will continue drop to Australians, particularly with the current generation who unlike their predesssors understand and follow closely international brands. Attempting to badge a Chevrolet as a Holden will fail totally. The current practice of removing Holden badges and replacing them with Chevrolet badges will only increase if for no other reason than to show GM that their customers are not fooled.
The figures speak for themselves, back in 1961 GM held close enough to 60% of the Australian automobile market, Today, at best GM has just 8% of that Australian market.
The World Wide future for GM centre’s around two brands. Those of course are GM’s ‘book end’ brands CHEVROLET & CADILLAC. The sooner GM begins to understand this and begins a business plan around these two iconic brands, the sooner GM will start to begin to become a serious competitor here in Australia and in the rest of the world.
It’s time to say good bye to Holden, confine the brand name to history and to embrace the 100 plus year old brands Cadillac & Chevrolet down under.
What a joke – $50 million came from the Aussie government as part of Holden’s cash sucking from Aussie tax payers.
All they have achieved is to demonstrate that you can kill off thousands of workers, disrespect the people who have supported you for years, sell rebaged Asian rubbish then grab what cash you can and send it to another country.
Holden needs to be put down like a sick dog. Have some respect for the country and people that supported them for over 150 years and shut off the Holden brand.
I agree with the comments made under “Holden is Dead” however in reality the Holden brand did not klick off until November 1948 when the first Holden was released.
Prior to. 1948, General Motors Holden’s sold Cadillac, Buick, Oldsmobile, Pontiac, Chevrolet, Vauxhall and Beford. The Holden brand was not added to the list until late 1948!
GMH continued to sell Pontiac and Chevrolet for a further 10 years until 1969. Dealerships until then were at the time known as GMH dealers to reflect the fact that they sold numerous GM brands. Holden was just one of them. Holden was also the cheapet most basic entry level cars. Prestige cars were Chevrolet and Pontiac.
From 1970 GMH downsized to sell only one brand, the Holden and from this point dealerships increasingly became known as Holden dealers.
Perhaps history will repeat its self as we see the return of GM dealers. Let’s hope so.