Holden won’t be sold, at least not now; MD
June 9, 2009 by David Twomey
The chairman and managing director of car maker GM Holden, Mark Reuss, says Holden will not be sold, at least in the near term.
Holden’s United States parent company, General Motors, filed for bankruptcy protection in the United States last week.
“It (Holden) will not be sold,” Mr Reuss told the ABC’s Inside Business program on Sunday.
“I can’t say forever because some day when I’m not here, and more perhaps when someone may have that idea, but we have not been approached, nor have we been offered, nor are we pursuing any sale of Holden.”
Mr Reuss said it was not a case of there being no potential buyers for Holden, which made a profit last month.
“I think this is a very closely held asset,” he told the ABC program.
“This is one of the iconic brands in Australia, and I think it always will be as long as we take care of it and feed it with the products and the different dealer services that we do today, which are very good.”
Mr Reuss said earlier in June that Holden would remain unchanged by General Motors’ filing for bankruptcy protection, which was the biggest bankruptcy application in US history.
He had said that Holden would join the New GM – a more efficient company comprising GM’s best brands – to be launched in the US, and would concentrate on manufacturing a four-cylinder car in Adelaide from 2010, improving technology across the popular Commodore range and launching its Cruze model.
Holden employs more than 6000 people in Australia, including 3100 in South Australia with the balance spread across other states, particularly Victoria.
Print it: 
CA, you should have titled this one “Just when you thought it was safe to go back into a Holden Dealership” with the Jaws music in the background.
““I can’t say forever because some day when I’m not here….” Very bizarre quote, kinda says everything is cool until he resigns.
If Holden is an asset wouldn’t the US administrators look at selling it to the highest bidder to pay back some of the bad debts?
Woo! Holden made a profit last month!
Break out the Moet, hire some high class escorts and order the lobster, they are in the money!
GM should sell Holden while they will still get a good price for it.
he doesnt sound very convincing to me. The shit hasnt hit the fan with bankrupt GM yet so if i was him i would go giving out false hope ………..all I can say is the worst is yet to come…….watch this space. Holden are shaking in their boots right now…….
“GM should sell Holden while they will still get a good price for it.”
Why would they get a good price for it, when nobody is interested in acquiring it??? I doubt Holden will be around in a 1-2 years time.
The chance of Australia’s own actually Australian owned. Now that would be an exciting idea!
A very faint performance I’d say.
i cant wait till it happens.
i hope they go down, that way there wont be any local market to protect and we’ll probably get cars cheaper without any import costs.
Mitch, don’t be a fool. Without a local manufacturing base, cars will not be cheaper.
Quote ” Mitch Says:
June 9th, 2009 at 1:27 pm
i hope they go down, that way there wont be any local market to protect and we’ll probably get cars cheaper without any import costs. ”
*Bangs head on desk and hopes these type of people aren’t old enough to vote *
The Engineer……..hahaha I somehow doubt that from this comment mate.
“Yeah they will…
Import tarifs will be removed, and competition will make sure the prices will stay down!! ”
Yeah righto ,and the worlds still flat mate !
Agree with F6, the fallout from GM’s bankruptcy hasnt fully been realised, and how GM’s structure changes may well affect Holden.
F6, what you dont think Ford Australia have concerns ? You personally may want to see Holden go but with more and more parts manufacturers closing in Australia Holden going may just see the demise of Ford too.
Ford have already felt the pinch of one of their suppliers closing recently, tools down for a few days in the body building section whilst they sorted out the supply problem.Not good if your waiting for a car……….
True Australian car lovers wouldnt wish to see any of them go .
None of you have a crystal ball to see whats going to happen in the future ,so why speculate ?
The Engineer Says:
June 9th, 2009 at 1:47 pm
“Yeah they will…
Import tarifs will be removed, and competition will make sure the prices will stay down!!”
The government won’t want to lose tax dollars and the dealers won’t want to lose margins. Prices may come down a little, but no where near what people hope.
On topic, the article states explicitly that Holden made a profit last month – shouldn’t profit making be near the top of the list of running a viable business…?
I thought holdens were made in Thialand !
Profit… its only for a month, tally up a years worth, or over a models lifecycle, purely on a months view is not a good indicator.
Maybe ruddy’s stimulus boost has given some push to car sales in the prior month, I would like to see if other makers got a boost in revenue in the last month too.
BM my dear, I’m afraid that some of us are are trying to explain to those that cannot see the forrest through the trees.
How people believe that the Koreans would keep their prices down when the have the lions share of a market is beyond me. That is not a dig against Koreans BTW, it is just simple business principles.
For those that are short sighted, argue this out!!!
GM-H closes meaning there is not enough volume to keep the suppliers open in Australia. They close causing a rapid rise in unemployement. All of a sudden the dollar drops and it becomes uneconomical for Toyota and Ford to manufacture here. Again unemployment has a rapid rise as they and the hundred or so small parts supliers, business’ (accountants, cleaners, stationary printers and pie vans) all close up and create more jobless. THis inturn raises inflation causing the dollar to devalue. Your Europeans realise that midle class Australia can no longer afford VW polo 1.4 or a clio so they pull out (another 1000 unemployed) and all that the motoring public is left with is 50k corolla’s comming out of SA or Thailand, or Hyundai/Kia product. The koreans increase their price leaving you the choice of indian or chinese……… Happy days for the those that hate anything Australian (that includes assembled in Australia)
Mr Frontman,I think you have targeted B.M. wrongly.My belief is that she was quoting someone else,and you have thought this was her words.
You make the correct points of course,some people are a little silly to say the least.
Short sighted,ill informed,no understanding of business,Ha maybe the pollies are contributing to C.A.
Mitsubishi had a lifeline thrown to them,unfortunately they concentrated on the big family car instead of some serious competition in the mid or small car bracket.I came to live in Oz 15 years ago and forsaw the demise of the six cylider back then,why didn’t the car makers I wonder ?
Holden needs to be given as many lifelines as it takes to keep it in business,along with Ford if needed.
Maggie Thatcher didn’t give a toss about the workers,just profits.Do people realise that big profits means someone somewhere is suffering to achieve these profits.
Greed doesn’t share,greed doesn’t keep the worker in employment,not even the financial planners are escaping this recession.
Long live the Aussie car industry!
Sorry Lefty but you miss understand my comment, I don’t dissagree with BM (.):-)(.)………
What you are saying is true, Mitsubishi should always have stayed the course and pushed 380 as an Alternative to the Big Six, for those that don’t want to tow etc… The only reason that Aurion is surviving is the arrogance is sheer bloody mindedness of Toyota to be Number 1 at all costs. (that is not picking on their cars it is picking on their business ethics) there will always be room for 2 big lazy sixes, but there needs to be a suplimentary line to survive down under.
I think you are wrong Frontman. Why does anyone need an engine as big as a six anymore? They waste too much energy for what they are required to do. IMO big sixes will become as relevant as a steam engine train. Look what’s happening in the Australian car industry, everyone is looking at cost; cost of ownership and cost of environment are key drivers in new car purchasing. You can’t deny the change of current. I think it is completely rational to speculate that if local manufactures think they can rely on profitable sixes will fail. Fuel, registration, insurance, stamp duty have all increased recently to curve and reward new car buyers into more environmentally friendly cars. And then the global emissions trading scheme will put the icing on the cake. Holden and Ford need to drop the six in fast favor of the alternatives. Toyota already has the lead on hybrids built in Oz, what was Holden’s and Fords answer to that, a four cyl Cruise and Focus? Come on were is the hydrogen and electric locally manufactured cars.?
frontman….you are a funny man.The only reason that Aurion is surviving is the arrogance is sheer bloody mindedness of Toyota to be Number 1 at all costs.??.no….that was holden giving away commodores at rock bottom prices to fleets at all costs just to keep the title”australia’s best selling fleet car’.no wonder losing money for the last 4 years.
Im Holdenblooded but if either Ford or Holden go, then Australia will lose their reputation for making awesome muscle cars. ( F6 and W427). We should support them even if they arent fully Aussie owned. GO HOLDEN (and Ford)
T/S,
Why does anyone need a 6cyl anymore you ask?????
Well just drive one and you will feel how inferior a 4cyl is to drive.
The economy savings in 4cyl cars is false.
There will always be a market for 6 cyl cars.
Perhaps the current 3 cant be sustained, but the 2 main players will still have a big enough market to fight over
On Topic…..
If Holden arent going to be sold, then how are they to be transferred to the new GM company, because to quote the news……….
“The carmaker plans a quick sale of its profitable assets by the end of August to a new company.”
Maybe thats the promise Reuss was given, we wont be selling you guys (and not even to the new company) ha ha ha ha ha
By the way I dont seriously think that, but Reuss is coming out with some wack comments.
What I want to know is how come the news has been very quiet regarding Holden and it coming from the Horses mouth (GM).
GM hasnt said squat on the matter……Why not…….
Andrew, perhaps T/S was refering to his own Kia range?
Clearly nobody wants too many of them.
I agree in principle that some models have outgrown themselves, but to say “Why does anyone need an engine as big as a six anymore?” is just stirring the pot, and pushing his own 4 cyl range (which IS doing well at the moment). However we have three cars, two 4cyl and one 6cyl. Overall running costs for the 6cyl are not appreciably more, and considering the benefits are worth it.
Mitch: “i hope they go down, that way there wont be any local market to protect and we’ll probably get cars cheaper without any import costs.”
Mitch if/when Holden go its most likely that Ford and Toyota won’t be too far behind.
Because with Holden gone the parts manufacturers in Australia which Holden Ford and Toyota currently use will have to increase the prices of what they charge Ford and Toyota inorder to cover the cost of production – which will increase Ford and Toyotas costs. Which will make it more tempting for them to close and become an importer like Nissan is and Holden will be – that is if they close.
Then when we are left without a local car industry; The car companies will most likely increase their prices [despite the fact that tarrifs will most likely be 0%]
because they will see that we have no other locally produced alternative so we will be forced to pay whatever price the overseas car companies want
having said that with so many former auto-workers out of work as well as the countless others from other industries.. its very unlikely that many of us will be able to afford a new car and we will be driving around in 20 year old Fords and Holdens which I’m sure will annoy the Toyota fans
Sure they might not be as reliable but their cheaper to maintain and they last longer
DesignEngr,
I totally agree.
I have a 4cyl and a 6cyl aswell. Thats how my typical driveway line-up has always been, and the 4cyl isnt there under the impression of being drasticlly cheaper to run, its there because the other half cant really handle a “Big” car, as she doesnt feel comfortable.
She’s not really a big girl, 5ft nothing and 50kgs ringing wet (exaggerating a bit).
If she felt comfortable in a big car, chances are thats what would be in the other driveway too.
The fuel savings arent really convincing, and chances are your imported 4cyl car is more expensive to service and repair than a Commodore or Falcon.
I use to also have an E-Gas, and that was miles cheaper to run than the 4cyl rice burner that was in the other driveway at the time.
Rego isnt that much different either. Whats 100bucks more round figures???
Ahhhhhh my fondling Frontman ,you are on the money {I hope your ears are feeling warmer now darling}
BMW have said they will ditch their 6 in the future but only after they have a great twin turbo 4 to replace it. So saying that I think they too understand the need for that extra grunt we need but also believe the long term reality of engines will be getting smaller in cubes.
Until we have a replacement for the 6 we wont be seeing it leave our shores too soon. Andrews right we need the 6 here in Australia still.
BM,
Thats right,
I should also clarify my thought.
I should really say that big 6’s have not been made redundant.
Until such time as they have been, there will always be a market for 6’s.
6’s being made redundant is a while off yet
Why would anybody want a 6 cyl or a V8 for that matter. Hmmmm, let me think. Well have you ever tried towing a boat, or a caravan or a horse float or even a heavily loaded trailer with your 4 cylinder car? No and neither do millions of other Australians either. Just look around on any long weekend or holiday period. The Aussie market for new vans is around the 15′00o per year PLUS the older ones already on the road. Add to that the thousands of boats, tradies with big heavy work trailers. The 4 cyl cars just don’t cut it. The perceived fuel savings of 4 cyl cars just does not justify going out and dumping a perfectly good family 6 and trading down to a 4 cylinder. With the new liquid gas injection systems around, the cost of running the family 6 can be quite low and I personally think that this is the future for Holden and Ford or at least a good viable option anyway.
eh179driver,
I fit directly into one of those categories you listed……..
I think the 6cyl debate is well and truely proven now.
A 4cyl just wont cut it for me either.
There isnt presently any other viable options to the 6cyls
Do we all realise that LPG will be taxed at the end of next year,this will no doubt ruin any notion of running a 6 or 8 economically,sadly.
I am not booing the six. My point is the Australian government is giving buyers incentives to buy a four over a six. Reduced stamp duty, insurance, registration etc. In addition to that the global emissions trading scheme will ensure fleets will favor low emission cars. Also Australians are now more metro than ever before, we just don’t travel the distances we did 10 years ago by car. As for towing ect a diesel four will do just a good a job as any six petrol.
Its the size/weight of the vehicle its in that also is needed in towing though Salesy…………….Not to mention most of the 4s are FWD as well.
Ive passed triple road trains in a Landcruiser towing a 1800kg Falcon ,no FWD diesel 4 is going to be able to that safely.
Hi BM. The right tool for the right job. I agree. A diesel four cyl RWD would be adequate for the average aussie’s towing requirements. I don’t see any road trains in metro areas. You towed a Falcon with a Landcruiser? That would cause a debate on its own if certain readers were able to blog here still.
LHL ,Running a car economically [be it a 6cyl or a V8] doesn’t depend so much on the priced of fuel but more on the drivers attitude and how heavy s/he is with their right foot. It also depends on how well your car is maintained etc
Sure petrol or LPG may be $1.20 a liter and it may cost you $60-80 to fill up [from running on empty] however what determines a cars economy [as always] is how much distance you can cover out of one tank of petrol
T/S, Morning…
AS for the 6 v 4 debate, sitting at normal Highway cruising speed of limit plus 5%, on cruise control with 4 adults on board going for a long weekend on the Goldie how much better than the 7.3l/100km attained by the BF2 XT ESP (ZF + ESP & Alloys) would your Kias give? Add to that how much more comfortable were my passengers?
Now sure, as for people buying a second car to be driven to and from the office and such, the Soul and Rio and tath are good, but then so is a $21,990 ranger for Dad (a large market for those is the second car market). But every Family still has the larger car for family outings, even if it is the company car.
Yeah Salesy……..shhhhhhhhhhhhhh lets not speak of it again.
Seriously wont we always need the right tool for towing ? We still live in a big Country and do leave its City outskirts a few times a year .
Perhaps in the near future the 6 & 8 will be culled but we will need a powerful 4 to take its place {still in a family size car I think} and for it to be more economical than the 6 & 8 to be viable.
I am saying our own government is making a strong argument that we shouldn’t buy a 6 anything. Increased stamp duty (2% for a 4 and 3.5% for a 6), registration and then the global emissions trading scheme will make more financial sense for private and business buyers alike. I am saying in order for local manufactures to survive they need to get in front of the current market and take hold of the lead. Four cylinder sales have increased by 27% in the last 12 months. The market is dominated by imported fours from Japan, Korea and Germany. No wonder the Australian manufactures are suffering, were are the aussie fours?
Frontman.
How often would you have five passengers in your car on a trip to the Goldie? And how often are you just by yourself in peak hour traffic or running around town? Yes a 6 running at constant temperature and speed will use less than 8 liters/100km on the highway but, that’s not all the driving the average mum and dad do. You would be just as cozy in a diesel Sorento or Soul on your Goldie trip and they get 5.18 liters/100km.
BM
Yes, we will always need the right tool for towing. But what % of towing would the average mum and dad do and what % of around town would they do?
I am about to move house (true story) it will cost me $110.00 an hour for the removals company to do everything in about three hours. Even if I did all the towing/moving myself I would have to own a trailer (or hire, borrow one) according to the discussion I would need a 6 cyl Falcon/Commodore. After you add up the cost of owning a 6, buying a trailer Vs paying someone $330.00 what is more cost effective?. I am not moving once a year. Not to mention I won’t have to break my back shifting furniture.
Yeah hun but people in general arent that smart.They dont think that far ahead just what they have used or done in the past with their cars and what will accommodate that same need in the future.
We bought the Cruzer not just for towing but for where we lived, Goldfields is full of Roos and Emus and are damn dangerous if you hit them . So using the Cruzer for towing was just one advantage .
Happy moving ,something Im not looking forward too once my house is sold. Cost for someone else to move me up the road would be thousands from the stuff Ive got,Ill be getting my brother with his B class license to drive a renter 8 ton truck [several trips yes} and save myself some big dollars ;)
Hate Moving! grrrrrrrrrrrr
T/S,
lets wind back the record…….
QUOTE…………
“big sixes will become as relevant as a steam engine train.”
You said big 6’s were going to become irrelevant.
Of course 6’s will be higher rego (they have always been), but what ever became of buying a vehicle for purpose???
Not everyone that buys a vehicle is a penny pincher.
Also to say small 4cyl diesels are equivalent to big 6’s is a definate sign that you have never towed with anything.
For a fact the I6 tows rings around the Hilux 3.0L diesel.
4cyls arent really that much more economical. Take the closest in size to a large car with a 4cyl in it Camry as a prime example.
Your typical small cars that that offer similar performance to a base Falcon can actually drink more.
I may have gone a bit of the tangent there so to re-cap
You said big 6’s will become irrelevant.
I and many others here feel strongly that if they do become irrelevant, its a long way off because there are a lot of traits in large cars that arent even close to be being replaced by a small car
Left Lane Lover,
Yes Im sure most realise that LPG will start to be taxed shortly. The Proposal was put in place quite a while ago and going by the first issue, it was meant to already in in place, but it has been delayed.
The proposal is to increase it 2.5cpl per year for 5 years which will see 12.5cpl imposed on the fuel.
It will still be an economical fuel alternative.
LPG would have to put on 50cpl before you saw it as break even.
And on top of that in QLD they are about to cut the fuel subsidy that is currently in place which would only be level with any LPG price increase aswell.
Also with the upcoming development on LPG vehicles, the economy will improve meaning that they will consume less and in turn cost less to fuel.
Do you think we should also steer clear of electric vehicles because the electricity costs are going up like a rocket???
Hi Andrew M/
Thanks for the information regarding LPG.I didn’t know by how much or over how long it would increase.I desire an LPG car next,for the economic reasons of course.
And just to correct you there,I didn’t say nor infer that anyone should steer clear of it !
Cheers,LLL.