Holden on verge of profitability in Australia

19/05/2018 Posted by admin

The new Holden Cruze will be built alongside the Commodore from 2010.IN reassuring Australian owners and buyers and more than 6000 staff Holden boss Mark Reuss has revealed the company is an integral part of the now bankrupt GM world and about to return to profitability. Holden was on the verge of turning a profit in its local operations, the companys managing director Mark Reuss said today.Reuss said the bankruptcy of Holden’s parent company General Motors would have no immediate effect on the local business, which was “cashflow positive” and “liquid.Reuss said the local car maker was safe and part of the new GM.”This is an epic day. It’s sort of like studying for the final exam. The final exam is here and we’ve passed,” he said.Reuss said Holden had been identified as a vital part of GMs business in the Asia-Pacific region.And he said the company’s forward product development plans were continuing unabated, including moves toward more fuel-efficient versions of its best-selling Commodore.”We still have the best-selling car in the country, we have a viable sustainable business,” he said. Reuss said the companys dealer warranties and after sales service would not be affected by its parents filing for Chapter 11 bankruptcy protection overnight.He said the company had taken the necessary actions to ensure its viability, including reducing its production to meet demand.He also claimed the companys research showed that consumer confidence in Holden was holding up well.”The confidence level of Holden dealers is good. We feel very good about the business.”He said Holden had made its own luck in escaping the axe that has fallen on several of the General Motors underperforming brands around the globe.He said the company had been scrutinised by its global parent and been given the tick of approval. “We’ve had two (third parties) look at Holden. We have a very good earning power in the future,” he said.”My dad said to me when I was a little boy the harder you work the more luck you get.”We’ve been creating our own luck here,” he said.He also thanked the Australian Government for its support.”The confidence the Australian Government has shown in the local industry has been very important,” he said.Reuss said the jobs of its more than 6000 workers were not under immediate threat.”We have no plans for any job losses right now,” he said.The company was working to develop new export opportunities to cover the recent loss of a $1 billion Commodore export program, caused by the GM financial meltdown.”I can’t stand here and tell you our product plans. The export business we lost … we are working very hard to replace that in Adelaide,” he said.Holdens Elizabeth plant in South Australia is working at roughly two-thirds of capacity after the loss of the Commodore export business.Reuss said the company was looking at export opportunities but refused to speculate on what they might be.He did confirm that the company would be exporting V6 engines to Mexico for the Cadillac SRX.He also confirmed that GM had approved a $450 million investment in a new Australian-built small car.There was speculation the funding could be under threat after GM global boss Fritz Henderson told US media none of the US Governments estimated $US50 billion of emergency funding would be sent overseas.Reuss said Holden would match the Australian Governments $150 million three-to-one with the money coming from General Motors Asia-Pacific operations. “The rest of this is coming out of General Motors. We’re part of the Asia-Pacific region and there’s money flowing from the company in making that investment,” he said.Reuss also hinted that Holdens local sales had bounced back in May.”You’ll see the market numbers here for the last month moderate a little bit,” he said.Official industry sales figures are released tomorrow. So far this year sales have been about 20 per cent down on the same time last year.More on the GM story at www.drive南京夜网.au
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