We love football, meat pies, kangaroos and Holden cars. Back in the day, it was dinky di to buy a Holden car. But bugger me, have the times changed, with Holden selling better overseas than Down Under. “We’re facing challenges as a business and undergoing fundamental changes, there is no sugar coating that,” Holden’s head honcho, Mark Bernhard says. “But our consistent financial results highlight the underlying health of the business. Now we need to keep our unwavering focus on growing sales, re-building our brand and putting our customers first. If we look after the fundamentals of our business, the rest will take care of itself.”
Let’s hope they do. Holden is an Aussie icon. I mean, they were responsible for the first all -Australian family car in 1948. But the local numbers are proving dire. In 2016, Holden sold less than 100, 000 cars for the first time in 26 years. Just under a decade ago, one in every five cars was a Holden. Sadly, that has become one in every eleven. The company hasn’t been seeing too many profits either with their paper profit of 125.5 million including a 128.2 million payment from GM as well as the federal government’s 50 million for the Automotive Transformation Scheme. If Holden hadn’t announced the end of their local manufacturing, they would have lost a whopping $180 million making cars in Australia.
But there is some good news. Holden’s importing strategy is making considerable profits. In 2016 Holden’s National Sales company operation hit a net profit of 27.3 million (after tax). Mark Bernard was thrilled with the numbers. “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.”
With the last locally manufactured car coming out in October, Holden will officially become fully imported. Here’s hoping our Aussie legend will hold on.