GM Holden announced its financial results late Friday afternoon, in a bid to possibly curb any bad media coverage, and it worked, most of the press (including CarAdvice) missed it for the weekend. Nonetheless, nothing like Monday morning financial news.
Holden might be behind Australia’s current number one selling car, the Holden VE Commodore, however in 2006, GM Holden went $146.56 million in the red. This continued from 2005 when Holden lost $144.6 million.
Much like Ford which lost $40.3 million dollars last year due to the development cost of the new Falcon (which CarAdvice continues to spy on), Holden said the 2006 and 2005 financial results were mainly due to the developement of the VE Commodore and the WM Statesman and Caprice.
There are other factors as well, Holden blames the strong Australia dollar which has crippled its exports and given importers the upper hand, as well as the massive discounts offered on the outgoing model range. Then there was the $20 million Holden spent firing workers at its Elizabeth plant, and the $307 million which was invested in Research & Development.
All is not bad however, the profit/loss life cycle is a common occurrence when a new Falcon or Commodore is introduced.