news

Peugeot-Citroen executive dismisses Holden takeover rumours

A senior international executive for Peugeot-Citroen has dismissed rumours of a possible takeover of the Holden brand seven months after the report surfaced.


In February this year the Australian Financial Review claimed the local distributor of Peugeot-Citroen cars – an independent firm called Inchcape – was “running the numbers” on adding Holden to its portfolio by prising it away from US parent company General Motors.

The link was established after the Peugeot-Citroen group in 2017 bought General Motors’ European brands Opel and Vauxhall – which supply the Holden Astra small car (pictured below) and Holden Commodore sedan and wagon.

“Inchcape is believed to be keen to see whether GM could be tempted to pull up stumps in Australia altogether, as part of the restructuring activities worldwide,” claimed the report in the Australian Financial Review. “It is understood bilateral discussions have progressed slowly and there are extreme sensitivities on both sides of the negotiating table.”

At the time, Holden and General Motors were slow to slam the rumours and Inchcape also refused to comment. A week after the story broke, Holden boss Dave Buttner (pictured below) told dealers during a confidential meeting the report was “pure scuttlebutt”.

“I’m looking directly at you. Believe me, it’s not going to happen. There is no plan (to change distribution). I did not join the company to close Holden” he told the dealer forum.

Days after the dealer meeting Mr Buttner publicly slammed the rumours of a takeover or buyout. “There’s always rumour and innuendo but there’s certainly nothing going on in that space,” said Mr Buttner, the former boss of Toyota Australia who took the top job at Holden in late 2018. 

“We’re not for sale, I didn’t come to sell the company down, I came out of retirement to work with people to rebuild this fantastic brand. There’s been no discussions with me and Inchcape.”

When asked if Inchcape had discussions with General Motors, Mr Buttner said at the time: “To the best of my knowledge there’s been no discussions that have transpired and I keep very close to GM. I speak to them on a regular basis … and I’ve got absolutely outstanding support. I don’t know anything about any discussion at any level. GM are committed to Australia. I have no reason to believe there is any credence in the reports.”

In a roundtable meeting with media in Sydney on Wednesday night, the executive vice president and operations director for Peugeot-Citroen in India and the Pacific, Emmanuel Delay, was asked if the French car giant ever considered a takeover of the Holden brand and the reintroduction of Opel in Australia – with or without Inchcape. 

Mr Delay said: “At first we should not (say) anything, but the answer is no. Not that I am aware of, absolutely not.”

When asked to elaborate on existing arrangements between Peugeot-Citroen and Holden, Mr Delay said: “We have a current supply contract … selling Opel-made cars to Holden. Two cars: Astra and Commodore. And this is just the result of the acquisition of Opel by (the Peugeot-Citroen group). Holden needed to continue supply, so they asked us to continue to sell them cars badged (as) Holden.”

When asked if Peugeot-Citroen planned to continue supplying the Astra and Commodore to Holden via Opel, Mr Delay said: “There is a commercial agreement that must be for a certain period. It doesn’t mean that after that period we cannot extend that contract.”

Asked when the current contract is due to expire, Mr Delay said: “To be honest, I don’t know exactly. But typically when you do this type of contract, you do it for two or three years. It depends on the interest of the buyer.”

He added: “If the buyer has a long term commitment … then they will ask for a long term contract. The details I don’t have, but it’s ongoing and it’s very normal.”

Mr Delay said such deals were common in the car industry either following takeovers, as is the case in this instance, or when one brand takes over a legacy car from another manufacturer.

“It needs to be win-win,” said Mr Delay. “If the (buyer) of the cars needs the cars, they will secure cars and the supply quantity for a certain period. Normally the seller is always happy to sell cars and make (a profit).”

Mr Delay also ruled out a possible return of the Opel brand to Australia. “There is no plan. For now the focus is on reviving Peugeot and Citroen in Australia.”

Joshua Dowling

Joshua Dowling has been a motoring journalist for more than 20 years, spending most of that time working for The Sydney Morning Herald (as motoring editor and one of the early members of the Drive team) and News Corp Australia. He joined CarAdvice / Drive in 2018, and has been a World Car of the Year judge for more than 10 years.

Read more about Joshua DowlingLinkIcon
Chat with us!







Chat with Agent