Holden reports $210.6 million loss for 2009

By George Skentzos | April 01st, 2010

Holden has revealed it suffered a $210.6 million net loss for 2009, a result which it blames on the loss of Pontiac exports to the North American market.

Its investment in the Pontiac program accounted for the majority of one-off charges in 2009 totalling $223.4 million – without which Holden would have boasted a $12.8 million after-tax profit.

Well before these figures were released Holden had already begun to cut its losses by introducing the Pontiac-faced special edition Holden Commodore range which has since found a permanent spot in the local line-up in a bid to clear redundant stock.

“This had a substantial impact on both our domestic and export sales,” said Holden’s chief financial officer, Mark Bernhard, “Much of our loss was incurred as a result of GM’s decision to discontinue the Pontiac brand in North America.”

Holden’s other export markets also suffered as a result of the economic downturn with production down significantly from 119,000 vehicles built in 2008 to just 67,000 in 2009 from GM-Holden’s factories.

Mr Bernhard is confident that Holden would return to profit in 2010, spurred on by the planned local production of the Cruze in Adelaide next year.

With Herald Sun

Calabria

That’s a massive lost in anybodys language.

The bad days *should* be over, and we hope they can get back into the black ASAP

Good luck to them, they employ 1000′s here in Oz, we need each other!

What about a hybrid and/or Diesel Commodore GM/H?
greenroom

yeah partly right, the blame of the loss is the loss of pontiac exports to north america…but what about not having the right products at the right time, the crap build and finish, mis matched products, old technology and uncompetitive pricing can’t help either.

Andrew

Uncompetitive pricing? Hmmm when you can get a VE SS for the same price drive away as a Mazda 3 SP25 like my mother did i wouldnt call that uncompetative, also the commodore is safer, bigger and imo it is nicer inside.

Andrew M

Both those vehicles have their pros and cons.

SP25 “IMO” is the nicer one inside.
SP25 is better built, better resale and better fuel economy.

Yes the SS is bigger and more powerfull, but I hardly thing someone looking at a hatch back would swing to an SS

davie

When writing the business case for the G8, I presume Holden would have listed “Failure of Pontiac Brand” or similar, as an item in the risk register and a potential cost to their bottom line.

If they did, they would have known this was coming for quite a while.

Calabria

Yeap, it was a upper level scam, just to get money out of the Government, which they did and still are doing.

Might as well get as much and as often as they can, otherwise some other industry will get it….

http://CarAdvice The Salesman. Falcon is only 38years old

Why would Obama allow the Aussies to import a product the yanks could make and keep the money and jobs local? It was doomed from the start.

swampdawg – knows rifles

I agree Salespitch, with some major US companies and GM going bankrupt there was no chance of GM importing Holdens, they were reluctant to do this even in good times. Rudd Motors is now staggering, I am thinking the Cruz will not turn any decent profits. Sadly Holden could not even spell cruise correctly.

Tom22

Back to business as usual GM
Splatcat03

A $210 Million dollar loss, despite receiving $200 million from the Aust Govt and their so called No 1 selling Commodore.

Deco

I doubt the $200million is counted in their revenue or profits.

Tom

On one hand the GFC surely didn’t help Holden’s finances, and the culling of the US export program didn’t help either. However this is Holden’s 5th annual loss in a row, they haven’t posted an annual profit since 2004. This is despite 2007 being the biggest year on record for car sales worldwide. Forgive me Holden if I remain skeptical of your ability to generate a profit for 2010 as well.

Andrew

They didnt post a profit last year as they were force to cease manufacture of the 4 cyclinder engine, otherwise they would have posted a small profit.
Shak

Well for 2010, demand is up, as is production, as is business worldwide. Also the planned plnat modifications for the Cruze are 95% completed, and they are ready to begin rolling off the line. I thik development on the Vfis well under way as is the new captiva. Also the Spark, and Aveo RS are on their way. I think when you take all of these factors into account the business case for Holden in 2010 looks very nice.
The Realist

The following is what they say year after year…

“Mr Bernhard is confident that Holden would return to profit in 2010″

Tom22

How can GM continue to give Holden billion dollar grants for new cars if they cant post a single profit?

has their VE earned Holden any money? No by the sounds of things its lost them 500 million, so it hasn’t even paid for its development costs yet.

They need to be able to stand on their own hind legs if we have any hope of keeping these cars local to Australia. Unfortunately i cannot see that happening.

Deco

100,000 Camaros disagrees.

Wheel Stud

Obama owned Holden wont make money while they prop up their sales figures by selling Commode mainly to fleets. Their mainly Daewoo range of cars is the worst in all classes and are sold at very low profit margins. Commode has a limited time left as very few sales are to the private sector. The fleet sales are also mainy the base model which is very low or no profit. Why would anyone buy a GM Obama when they offer the worst cars? How are GM going to pay back the 100 billion that Obama gave them to keep them going? Instead of talking about the demise of the Falcon i think we might see the demise of the Commodore before that.

Shak

You dont read much news do you. GM has already paid back a considerable chunk of the loan they got, and it wasnt 100 billion. And yes many of Holdens cars arent top of the class but they certainly aint the worst. Cruze is extremely competitive, as is Commodore, and Captiva. Sportwagon is eating the wagon market and even if Holden get a fleet sale it is a sale.

Tom

You’re right, it was only $US52 billion, and so far they have paid off, wait for it, $US1.2 billion, or roughly 2% of what they owe. Not exactly a ‘considerable chunk’ would you agree?

birdie

iam glad u sad it was ONLY $US52 billion, for a minute there i thought govenment motors where in trouble

Fernando

If Holden keeps losing money GM might sell Holden to Chinese just like Ford did to Volvo. I’m concerned about it.

Tomas79

Why would the Chinese want holden? I think Holden will suffer an orphan death!

noj

I agree Tomas as I have recently posted elsewhere. The thing that kept them ahead of Ford Aus was their Middle East export program but that seems like it is failing as well. Once Ford gets its Global car GM will follow suit, so not only no more Falcon also no more Commodore.
Captain Nemo

Tommy you should be more worried about your beloved Skoda.
How long do you think VeeDub will keep the millstone which is Skoda AU hanging around their neck. 1000 cars a year thats less than one months Cruze or 3 sales take out demos with reg & salemen driving the things and sales are more likely 850. Your beloved Eurotrash will be long gone before Holden or Ford for that matter in AU.

Tomas79

Skoda is making money, they have progressed faster are selling better then many other European brands that been here longer!! Soon there will be a great opening in the market, made up by the demise of the U.S bogandoors and falcons!!

How about using your other Nickname you coward!!

Captain Nemo

And what would that other nickname be Tommy??

I would love to know what you think it is.
Tomas79

Why you playing stupid, captain nemo, aka bavarian missile?

GoHyundai

oh honey the chinese want (need) everythin they can get,

sad,

Tomas79

Holden doesn’t have the world wide recognition of Volvo or other brands…
What would the Chinese get for their money???

ABMPSV

Falcon and Commodore exsist because of government, car rental companies..etc. If GM and Ford would relly on private buyers it would be long time gone. If you looking back 40 years big cars were about 80% of the market today is done to 30% and falling that is why like Toyota, Honda, VW..etc in better situation. As for the Skoda I know they not selling well yet. It will take few years. KIa, Hyundai, Proton was the same. Behind Skoda is VW and will support it becasue Skoda is making very good money for VW. Selling very well in England, Germany and China!!

noj

The thing is Skoda are making profit, unlike Holden. Remember Skoda is sold world wide unlike the Commodore. So Skoda has time on its side to become established in Australia it has the backing, unlike the Commodore.

ABMPSV

Skoda sold world wide because it is a better car than Commodore!!!

jojo

Why do most of your posts end up being a Sales pitch for the struggling Skoda brand in Oz?

noj

Its not a sales pitch its just fact.

Captain Nemo

Newsflash bud this is Australia not Europe or China as i said earlier 850 cars P/A and VeeDub are not gonna support a dud like Skoda in Oz much longer.

noj

I think your under estimating VW and their patience lets remember they aren`t GM or Ford.
Tomas79

A dud which sells more world wide, and totally smashes the commodore in every compero!!

nick

All I can say is remember Seat. Hopefully Skoda don’t go down that path in Aus though.

Oh and btw if the XR6 is the best selling Falcon and XT accounts for 5% of sales, I would hardly say that Ford is relying on fleet and government sales.

Luv Local

Mate, the hire yards are full of XR6′s. Get out to a airport.
dave

Aurions and Camrys mate.
Tomas79

Unlike SKODA, SEAT FLOPPED most reviews and comparos!!
dave

Actually Skoda have quite a lot of cars in rental fleets. Don’t see many private owned Skodas.
Tomas79

Where can a find a rental skoda in australia? I have looked and cant find one, I’d love to rent one!!
dave

Obviously have never looked at Europcar. Full of Octavias.

Rocket

GM exists at the pleasure of Obama and Rudd. Lets hope they dont pull the pin on it.

ABMPSV

and we paying for it!!

Deco

You’re paying for the thousands of jobs that rely on the auto-industry.

http://www.caradvice.com.au Mick

How long since they last returned a profit? 2004? I ‘d like them to bring back the Torana,One Tonner and Monaro in VE form,but I guess its not possible with endless losses being posted.Err….. I didn’t mean Torana in VE form,but the other two! My first car was an HT Prem V8 in metallic blue,then I got a VB Comm SLE V8 in red. Two beaut cars. I don’t own Holden right now, but would hate to see them go under.
Shak

Lets see all the Fordboys say all this junk when the Cruze tops the charts. Three of Holdens respective cars are either first, second or third in their classes. It dont look that bad to me. As long as they can plan well from her on in, which they seem to be doing, they will be in the black by the end of 2010.

Muse

Top of sales charts doesn’t mean anything when you can’t turn a profit.

The Realist

Exactly.

Panlo

Cruze will always be an import.
If Commodore can’t make them money, how will a mid sized car make money with smaller margins.

Frenchie

Didn’t German government offer cash for clunker scheme(tax payers money) and most Germans bought VW’s, Opels and lots of Skoda’s. Also reported was alot of fraud and now they have canceled the scheme wait for massive job losses and these car makers loosing money.
The Realist

So we now have the following:

2005 FY – Loss
2006 FY – Loss
2007 FY – Loss
2008 FY – Loss
2009 FY – Loss

And Holden would have Aussie tax payers believe they will make a profit in 2010?

ABMPSV

Yes. Just tax the European, Japanese and Korean cars more so you will buy GM or Ford.

noj

Just stop feeding Holden and Ford tax payers money and make import Tariffs 0%. Then we can have imported cars cheaper, that way it will still make the Taurus cheaper for the Falcon buyers and Chevy Impala or Buick LaCrosse for the Holden boys.

Shak

Just because Import tariffs go down does not mean the importers will put their prices down. The average buyer would not even know that tariffs had gone down. Look at what happened with the latest reduction, only about five manufacturers put their prices down. While i agree that competition would force the locals to perform better, it just doesnt always translate to cheaper prices.

AWD

ONe thing you GM lovers are forgetting is that GM and Holden are fully owned by Barrack Obama. They would not be here right now if he didnt bail them out. They are a crap company that builds crap cars and why he decided to keep them going is beyond alot of people. What a waste of 100 billion dollars…….and they certainly did not deserve to get it. So when you Holden\Daewoo lovers buy one of his cars just keep in mind you are giving money directly to Mr Obama……OUCH!!!
Alister

Well they could still afford to buy TeamVodafone!
http://www.caradvice.com.au Mick

AWD,I’m with you on that. Holdens main carline is too big for most private buyers,and all the rest is fully imported cheap Korean crap. As for the VE ute,the payloads are laughable-imagine telling your mates at the pub your ute can haul a whopping 600kg! The sad thing is,it wasn’t always that way. They once had cars people wanted.I personally am offended that my taxes are being given to inefficient companies like this when small buisiness owners wouldn’t get an ounce of help if they went under. Having said all that,many people are employed either directly or indirectly as a result of their existance,and many people still get want the Commodore. Ford Oz are in pretty much a simular situation.
Lynchy

As bad as Holdens bottom line looks for the past 5 years I think this year they will turn a profit.

Before the development and release of the VE, Holden were considered the jewel in the GM crown, the VT – VZ cars sold very well and the development costs over the platforms life span was very small compared to VE. From memory the VT cost about 500 million but the subsequent X, Y and Z were very small and they made good profits.

A lot of the reason Holden haven’t been profitable was due to the development costs of the VE, let’s not forget that they weren’t just developing an Australian only car, they essentially developed GMs global large RWD platform (and they did a fantastic job) it was initially supposed to spawn quite a few different models and variants around the world. One billion dollars sounds like a lot but you can bet Fords global large car wether it be FWD/AWD or RWD will get a lot more money than that allocated to it.

Most of GMs and Fords(US) losses haven’t occured because they can’t develop and sell good vehicles, they both still sell a truck load, its more that back in the 80s they made some poor decisions concerning employees health benefits, they’ve been struggling to make money ever since, this was exacerbated by both companies paying top dollar for foreign car companies that never repaid them their outlay, Ford realised they were throwing good money after bad and has now sold off all their subsideries, they took a big loss but it’s one of the reasons they turned a small profit globally last year, GM is now doing the same so they can concentrate on their core products.
jweb

hahahahahahahah
Power windows

Alister…….No they cant afford TeamVodafone. They had to cut funding to all of the “holden” teams and also give less to HRT which is why they hate TeamVodafone. It only goes to show that Holden dont care about the other Holden teams. Lets face it, why are people so surprised that TeamVodafone are still winning races……because they prepare good racing cars. Its no big deal changing brands because the cars are the same under the skin anyway. There is no real difference between Ford and holden v8 supercars as it is a controlled category …….how many Holden parts are there on a supercar? even the panels are not the same as the production car so it is nothing like a Holden. Oh…..the category runs a Ford 9 inch spool diff…..a “Holden” with a Ford diff……lol
Elitist

Holden cars are rubbish..They start to loosen up after its 3rd year of buying.
Just sat in friends 06′ SS…I was surprised to hear it wasn’t a 2002 model the way it felt cheap with crap plastics..

Captain Nemo

@ Elitist
If you want to see rubbish you should go sit in a Skoda mine has only done
18K kms. Has heaps of rattles plastics are easily scratched DSG is clunky & servicing is expensive.

noj

HAHA yeah right.
Tomas79

Your bmw from the 1990′s isnt a skoda!!

Elitist

Im sure that Skoda will last twice as long…
I just never noticed nor cared on the cheap plastics and fittings Holden uses for their cars. They’re really embarrassing and I cant believe there are people out there who are fans religiously towards this car. I guess they have never owned anything better to compare….Ignorance is bliss.

Captain Nemo

@ Elitist

As i said before bud if you want to see cheap easily scratched plastics just look inside a Skoda.

ABMPSV

Holden got a big problem! First GM in US must survive otherwise Good Buy Holden. Second they must produce cars and engine what private buyers want not just here but OS too. Since 1970′s sale of big cars is down. Yes some years are up but is down. Why? Because small cars getting bigger and with more technology good power and low fuel economy. Late 1970 a V8 car had 125kW today Corolla got 100kW and Corolla is over 4.5 meter long.

Andrew M

And today a Corolla classed vehicle has similar fuel economy to that of a Commodore from days gone

Prius Pensioner

What? Holden V8 “landyachts” from the 1970s do not get good fuel economy. The current Corolla is rated at ADR 6.8 L / 100 km. This would not be usually achievable in normal conditions, but I would bet that one of these landyachts you speak of would get a best of 10 L / 100 km on the highway. The city figure would be above 25 L / 100 km.

F1MotoGP

First you can not compare 1970′s Holden to a new Corolla. In 1980 a new Comodore SL 5 liter V8 had Power: 114kw at 4000rpm Torque: 344Nm at 2200rpm
Length: 4705mm but only 1225kg. Today a Corolla sedan auto is 1280 kg today’s Commodores are close to 1800kg. Fuel economy for the Corolla oddicial ADR figures for sedan auto is 9.7L/100km city and 6.1L/100km hwy. I can achieve this figures no problem.
Andrew M

Re-read my statement….

I never said the V8 models, and I never specificlly said the Corolla itself.

Commodores around 2000 (VT/VX) had ratings of 8.0L.

The Corolla is a better performer, but in sedan guise its official is 7.4L
Some of the “Corolla classed” vehicles are in the low 8′s.

So Commodores of days gone did achieve 8L odd, and todays small cars do infact also hover around 8L

Goodfa

The 8.0L figure you are quoting for the Commodore is a highway only figure wheras the 7.4L figure for the Corolla is a combined(city/highway) figure so is not really a fair comparison.
Andrew M

Not so grasshopper,
I just looked up a basic as VX Commodore, and the hwy figure is actually 6.8L.

Have you got proof to suggest otherwise????
8L was certainly the combined figure.

So yes it was actually a fair comparison.

I think people seriously forget how efficient the commodore used to be.
1000k’s from a tank used to be a piece of p-i-s-s, but since the introduction of the 3.6L it turned into a sailor
Goodfa

I stand corrected Andrew M.
This may explain why my friend says that his new Holden Cruze is no more economical than his old VX.
Andrew M

That would surely explain it Goodfa.

And I reckon I know which one he likes to drive more………
At a guess I’d say the one without the risk of DVT.

Also the Earlier Commodores would achieve near their fuel rating, whereas from what Ive heard the Cruze doesnt

Isnt it quite funny how people never realise how thirsty the Commy has become untill its pointed out, It never used to be like this.

Couldnt tell you how many people on here have tried to laugh me off when I pass that simple fact

Tomas79

Andrew M, telling myths as ussual!!

Andrew M

So what part dont you believe…..

Commodores of days gone didnt rate at 8.0L odd
OR
Small cars of today dont rate at 8L odd

Robin Graves

They’ve had their chance but just like the arrogant US management of GM, they think they can get away with selling rubbish. Australia is a limited market and bad news spreads fast. Anyone who made the mistake of buying a Daewoo tells all their friends how crap they are, sooner or later majority of the population will steer clear. Conformadore will always fare better due to the yobbo mob mentality who dont realise how crap they are because thats all they will drive. There is so much choice out there of quality cars why people still buy Holden is beyond me, they are utter rubbish. Hurry up and die and stop wasting our taxpayers money or replace the management with people who want to make it work not just feather their nest.

ABMPSV

I agree 100%. I had a friend in early 1980′s he never ever sit or drove a 4 cyl car after driving he was surprised. I worked at Holden and I remember how bad was the V6 engine which come from US. We worked lots of overtime to correct it. V8 was even worse! If you drive a Holden or Ford and after sit in a Honda Accord, Mercedes you can see and feel the difference. I am not talking about how much cost I am talking about quality, ergonomics, handling..etc. I had a good fortune to have friends and they got cars from POrsche, Mercedes, BMW…etc and I was driving those cars and I can tell you it is HUGE difference. Here in this country the average man buy Holden or Ford because father bought that car too. THose people would not buy or drive any other car so how you can have another opinion!!

Dennis

I can’t believe how many Aussies hate our local product. I rather keep our dollars here…
Publicity machine

Dennis, its not a matter of hating the local product, its a matter of buying a car that people like. You dont go out to not buy a car you dont like, you go to buy a car you do like. And most private buyers like imported cars, yet in some instances they are forced to pay higher taxes, and higher prices (from import duties) to subsidise ineficient and incompetant local manufacturers. Remember Holden may sell 55000 plus commodores (sedans and utes) a year, but 80 percent of those go to fleets. Private buyers only want to buy roughly 12000 commodores per year, probably the same for Falcon and even less for camry /aurion. Out of the 600000 plus private purchases each year, less than 40000 of those would be for locally produced cars

Captain Nemo

Publicity Machine

Ahh so thats why nobody is buying Skodas of the 850 odd sold PA most have gone to fleets. Aussies are quick to wake up to rubbish eurotrash.
noj

Isn`t it funny how threatened the Holden and Ford fan boys are by Skoda. I guess its because deep down they know the Skoda is a better car.

ABMPSV

I got the same feeling too!! Skoda is very good car just look at some test in Europe agains from Audi to Volvo!!
Captain Nemo

Isn’t funny how Skoda fan girls are crying because everyone is buying just about every other make of car exept Skoda.
Even Greatwall is doing better bye bye Skoda your days are numbered in AU.

noj

I guarantee you the Falcon leaves first, closely followed by the Commodore and long before Skoda.

Captain Nemo

What ever helps you sleep @ night bud
Fingers in ears LA LA LA LA Skoda not gonna leave Australia LA LA LA Skoda not gonna leave Australia.

BK

I aint going to be happy if the VD commodore isnt produced. Could be only a few years till it is taken over by the asians. I want my VD commodore now.
Power windows

The future for Holden as a car producer is very very bleak. They should just become an importer of Daewoo junk…….oh……..they already are!!!! Commodore is on borrowed time, very borrowed time as behind it all is a company that is bankrupt and in bedt to Mr Obama for 100 billion dollars!

Dennis

Do you think Ford is in a better position? Once Falcon goes FWD or on crappy RWD Mustang platform do you think they will perform better or worse they what they are?

Our local product keeps the competitors honest especially under spec’d Toyota…

nick

Well at least Ford have some decent cars that arent locally manufactured.

Power windows

OOPPPSS IN DEBT..NOT BEDT! sorry for the typo…..
ALEX

Looks like so many aussies hates holden and happy to see it down.
What a sad story.

I am from China, and whenever I sit in my VZ commodore, i feel much much more comfortable compaired to a lot of other brands.

Commodore is too big? WHen you have two kids and you are driving, your wife cant sit at the back in other smaller cars. Only in a commodore. And in China you got heaps of brands, cheaper and so many choice. But what if you want a Commodore sized car with rear wheel drive and similar power?

YOu have to consider BMW 5

SO sad, but that is the world. Just like the failure of John Howard.

noj

Ah well Alex your home land will be building them shortly.
Andrew M

Failure of John Howard????
Well at least he faced the reality with out signing policies willy nilly to try and impress the rest of the world

CA_resident_physio

Fairly certain ALEX is trolling.

Look I’m all for free markets. Holden and Ford in Oz, have had a free ride for far too long in terms of the protectionist policies that have benefited them. The whole concept of protectionism is to allow LOCAL producers to develop technology and production practices over the long to medium term at a cost that will be competitive in the long term. When holden first started, it was fine placing tariffs on imported vehicles because holden was an infant and couldn’t compete with the toddlers.

But holden hasn’t grown up. Junk in the market needs to be cleared. It isn’t fair that superior quality products from the likes of Mazda, Honda, Nissan, and European countries are made more expensive and out of reach of hard working people who pay taxes that end up paying for crappy products to be made from Holden. See the ironic cycle?

Obviously no government will ever completely reduce protection policies, it will upset an overly vocal group of the demographic, that support ‘home grown’ produce.
Therefore, the demise of Holden will be for the better, once its gone, the market will settle down and prices will be much lower. When you have an Omega commodore priced at $39 990, the natural instincts of Mazda, Nissan, etc is to jack up prices. Profit:competitive ratio is still good for them with uncompetitive domestic players.

juice

I think the commie and falcon have improved quality wise, and TBH I am not a supporter of the local cars. There is a lot of car for the money you pay.

The problem is pricing, if you want to buy one of these privately, you look around to find a good deal, both of these companies are nearly ALWAYS discounting their price, their low cost models(Omega etc) are now competing with mid sized cars in terms of price.

You build a big car to make a higher profit, that’s the theory anyway, but when your total sales has a high proportion of fleet and discounted private sales you are slashing your margins, therefore your profit.

These companies are in big trouble TBH, when was the last time Holden reported a profit? So this years loss was due to the Pontiac that never eventuated? Not relevant, the cost was still incurred. Holden should be making money, one would think the VE development costs would be all but written off at this point, still the losses continue. I do believe its 5 years since Holden reported a profit, and yet they manufacture BIG cars which should have the biggest margin in terms of profit.

Their problem is selling price, there should be another $5000.00 on their sales price, thing is, no one will buy them.

If they cant make money building a large car in OZ, they wont make money building a small one either. Its not how many they sell, its how much they make per unit that counts, this isn’t China with its huge volumes, its a small market where price is critical.