Holden posts $70.2m loss for 2008

Holden posts $70.2m loss for 2008

Holden posts loss for 2008

The global economic crisis, rising petrol prices, a consumer shift away from large cars and some large, one-off expenses have all worked against Holden to see it lose out in 2008.

Australia’s iconic automaker recorded a $70.2 million AUS loss for 2008, caused largely by a massive $76.8 million bill for various one-off costs, mostly related to the decommissioning of Melbourne’s Family II engine plant.

Before the decommissioning expense, Holden was on track to post a small after-tax profit of  $6.6 million for the year ending December 31. In the current economic climate, the loss is an acceptable one for Holden. Quality products, a strong export program and careful production management has still protected the company’s finances in a turbulent global market.

Total sales revenue dipped from $5.7 billion in 2007 to $5.4 billion, as many new car buyers shifted away from large cars like the Commodore.

Export revenue rose from $1.6 billion to $1.9 billion due to engine exports and the newly-released Pontiac G8 in the states, but with the G8 officially discontinued and GM enduring bankruptcy, this year’s export results may not be as positive.

The global economic slump prevented Holden from making a profit for 2008, like it did for many other automakers, but Ford came off much worse with a record $274.4 million loss.

Despite no profits last year, Holden is a solid performer and its position within the GM stable is still assured. The addition of the Cruze to Holden’s line-up should provide a vehicle capable of retaining customers downsizing from the Commodore, while the new locally-made small hatchback that’s expected to arrive next year will also give the company hope.

Holden posts loss for 2008

The global economic crisis, rising petrol prices, a consumer shift away from large cars and some large, one-off expenses have all worked against Holden to see it lose out in 2008.

Australia’s iconic automaker recorded a $70.2 million AUS loss for 2008, caused largely by a massive $76.8 million bill for various one-off costs, mostly related to the decommissioning of Melbourne’s Family II engine plant.

Before the decommissioning expense, Holden was on track to post a small after-tax profit of  $6.6 million for the year ending December 31. In the current economic climate, the loss is an acceptable one for Holden. Quality products, a strong export program and careful production management has still protected the company’s finances in a turbulent global market.

Total sales revenue dipped from $5.7 billion in 2007 to $5.4 billion, as many new car buyers shifted away from large cars like the Commodore.

Export revenue rose from $1.6 billion to $1.9 billion due to engine exports and the newly-released Pontiac G8 in the states, but with the G8 officially discontinued and GM enduring bankruptcy, this year’s export results may not be as positive.

The global economic slump prevented Holden from making a profit for 2008, like it did for many other automakers, but Ford came off much worse with a record $274.4 million loss.

Despite no profits last year, Holden is a solid performer and its position within the GM stable is still assured. The addition of the Cruze to Holden’s line-up should provide a vehicle capable of retaining customers downsizing from the Commodore, while the new locally-made small hatchback that’s expected to arrive next year will also give the company hope.

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