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Holden Operations Unchanged by Parent Company Announcements in US
- Holden to be part of New GM;
- Holden not included in US filing under chapter 11;
- No direct impact on local design, engineering and manufacturing operations;
- Technology improvements to best-selling Commodore, introduction of second carline remain on track;
- No changes to Holden employees and supplier payment arrangements; and
- No changes to Holden dealer and warranty arrangements.
Holden will continue normal operations in Australia and New Zealand and does not expect changes to its business after General Motors announced it has taken court action in the US to launch a competitive New GM.
"Operations at Holden are unchanged in Australia and New Zealand and we expect it to remain that way," Holden Chairman and Managing Director, Mark Reuss, said today.
"GM has clearly stated that all of its businesses in the Asia Pacific region - and that includes Holden - continue normal operations and are not directly impacted by this process in the US.
"No operations outside the US are included in the court filing or court supervised process.
"Holden is a subsidiary of GM but we are a corporate entity in our own right - an independent company under Australian law.
"Beyond that, GM has indicated that Holden will be an important part of the New GM.
"We intend to maintain our focus on Holden product programs and activities.
"That means technology improvements to our best selling Commodore range, launching the all-new Holden Cruze this month, and the introduction of our locally-built fuel efficient, four cylinder small car next year.
"We continue to run full operations at Elizabeth and Port Melbourne, producing cars for our 300-strong independent dealer network.
"We don’t anticipate this decision will have any direct impact on Holden’s workforce, dealers, or suppliers.
"Holden customer warranties are not affected and we continue to deliver the sales and service experience that our customers expect.
"We wouldn’t normally issue statements to highlight nothing has changed, but we appreciate that customers will naturally ask questions about this sort of announcement from the US."
Mr Reuss said Holden would remain informed of developments in the US, a process which had been determined to reinvent General Motors.
"The process being used in the US is unlike Australian and New Zealand law. It is a fast, court supervised process that permits the sale of selected assets to a new entity," Mr Reuss said.
"Unlike court-controlled processes in many other countries, US chapter 11 allows GM to deal with the financial issues that have built up over many years and for New GM to emerge as a healthier business, better able to deal with the challenges of today and tomorrow.
"It does not mean ceasing to trade."
Pending approvals, the New GM is expected to launch in about 60 to 90 days as a separate and independent company from the current GM, with two distinct advantages: it will be built from only GM’s best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before.
GM has previously indicated it is negotiating with prospective buyers for the Saab and Hummer brands. GM is working closely with dealers, including those in Australia and New
Zealand, to continue delivering vehicles and maintaining aftersales and servicing requirements.
GM Group Vice President and President of GM Asia Pacific, Nick Reilly, said: "We believe this step - which was taken with the support of the US Government - is the most efficient and effective means for New GM to emerge with substantially less debt and lower perating costs, and with our operations positioned for long-term success."
Holden customers with queries about this announcement can contact the Holden Customer
Assistance Centre on 1800 033 349.
KEY FACTS - Holden
- Holden employees more than 6000 people in Australia and New Zealand.
- Holden spends $500 million annually on employee wages.
- Last financial year Holden spent $420 million on research and development - more than any other private company in Australia.
- The Holden Commodore has been Australia’s best-selling car since 1996.
- Holden has produced more than 7 million vehicles since 1948.
KEY FACTS - GM
What GM Corporation’s US filing is:
- An accelerated, court-supervised sale of GM’s strongest operations and brands to New GM, which is intended to be completed within about 60-90 days.
- The most efficient and effective means to achieve the substantially lower debt and operating costs necessary to align the operation for future success.
- Unlike court-controlled processes in many other countries, the US process being used by GM will allow it to continue trading and enable New GM to emerge as a leaner company with a stronger balance sheet.
What this US filing of GM Corporation is not:
- This is not liquidation or a discontinuation of operations by General Motors.
- This is not a proceeding similar to insolvency proceedings in Australia.
- This does not mean New GM is going out of business or intends to pull out of Asia Pacific or any other region.
Source - Holden Media - FAQ attached
Donating Member
Does anyone know what is happening with the other GM brands outside of NA? Are Opel being sold to Fiat or was that canned?
Vauxhall? Saab?
I'm a sceptic...
"No operations outside the US are included in the court filing or court supervised process."Originally Posted by 1991_Vn2nV
Sounds like business as usual to me...
Customize your life.
Good news. Honestly the only issues with GM was always in NA.
Tells it like it is.
Holden still pursuing US Commodore sales
Hope yet for Commodore in the US under 'New GM'
DESPITE head office focus clearly elsewhere right now, Holden is still “actively discussing” further Commodore sales to GM in the US to boost profitability of the 'New GM'.
The closing of the Pontiac brand denies Holden valuable incremental export sales that can make the company a profit, and so Holden chairman and managing director Mark Reuss is doing his best to ensure that this potential seam of solid profit for the new GM is not lost on management in Detroit.
The Pontiac G8 version of the Commodore has been selling at nearly 3000 units a month in a market that has halved. This could, at a stretch, indicate a running rate of 72,000 cars a year in normal times.
Strong incentives offered to Pontiac buyers achieved increased sales in a market for GM that was down 50 per cent, showing the car is still touching a sweet spot with some Americans.
Now insiders at Holden are saying the Commodore is being considered for another brand and that Holden “is in active discussions” with that brand. It is most likely Chevrolet, for which Holden already builds cars sold in the Middle East.
The key here is that GM needs to start making money quickly. One way to contribute to that aspiration is to get Holden profitable and the way to do that is to get the Elizabeth plant running at capacity.
Holden - Holden still pursuing US Commodore sales - News
Nil Bastardo Carborundum
Good question. Papers today suggest a Canadian mob called Magna are pursuing purchase of Opel. Haven't seen any mention of Vauxhall or Saab, but these days, Vauxhall only sell rebadged Opels to my knowledge, so that name might either be consigned to history's dust bin, or continue to sell rebadged Opels, still made in Germany, but with the parent company being Canadian instead of American.
SAAB? Who knows? Saab tends to seel to a more "elitist" market than the other GM brands and its sales volumes may not represent a worthwhile investiment to foriegn owners. Perhaps Volvo might take them over to keep the workforce and manufacturing base in Sweden.
It strikes me as odd that GM is looking to off-load Opel. That is easily the most progressive and advanced engineering centre within the GM empire. Opel has been responsible for designing some of the best cars Holden has ever sold in this country snd certainly the best non-Holdens sold here. Their new range of Astra, Corsa and Insignia would easily flog the range of cars they offer here at present, for quality, engineering, safety and performance.
I can only assume that GM is so desperate to survive in the States that all subsidiaries, except Holden, seem to be up for grabs. That either says something about the way Holden is seen by the GM heirarchy as vital to the corporation's future, by proveing that Holden is planning the sort of developments essential for long term survival, or its strategic location within the Asian area ensures advantages that the other plants cannot match.
dah dut dut da dah
pontiac, saturn is discontunued (chev, gmc, buick will remain).Hope yet for Commodore in the US under 'New GM'
DESPITE head office focus clearly elsewhere right now, Holden is still “actively discussing” further Commodore sales to GM in the US to boost profitability of the 'New GM'.
The closing of the Pontiac brand denies Holden valuable incremental export sales that can make the company a profit, and so Holden chairman and managing director Mark Reuss is doing his best to ensure that this potential seam of solid profit for the new GM is not lost on management in Detroit.
The Pontiac G8 version of the Commodore has been selling at nearly 3000 units a month in a market that has halved. This could, at a stretch, indicate a running rate of 72,000 cars a year in normal times.
Strong incentives offered to Pontiac buyers achieved increased sales in a market for GM that was down 50 per cent, showing the car is still touching a sweet spot with some Americans.
Now insiders at Holden are saying the Commodore is being considered for another brand and that Holden “is in active discussions” with that brand. It is most likely Chevrolet, for which Holden already builds cars sold in the Middle East.
The key here is that GM needs to start making money quickly. One way to contribute to that aspiration is to get Holden profitable and the way to do that is to get the Elizabeth plant running at capacity.
Holden - Holden still pursuing US Commodore sales - News
hummer, opal, vaxhall, saab sold off.
daewoo under holden umbrella.
Research has shown that men usually sleep on the right side of the bed.
Even in our sleep we happen to be right.
Powered By Garrett
Donating Member
The paper today answered my question for me.
Saab are being re-organized into an independant company and have until October 22nd or something to find a buyer.
Hummer has been sold to the Sichuan Tengzhong Heavy Industrial Machinery Company Ltd, which is a Chinese company.
Majority sharein Vauxhall has been sold to Magna International. The majority share in Opel has been sold as well to Sberbank of Russia (35%), Magna International (20%), and Opel employees (10%).
Interesting that Holden is the only subsidiary of GM that hasn't been impacted on (other than GM Daewoo, but thats actually owned by Holden).
Donating Member
^^^^ Holden is the only company in GM that knows how to make a RWD car ( apart from Chevrolet )Plus we are still turning a profit ( i think!?! )
We got rep back, yaaay!
Hasn't been a profit at Holden for a few years but they don't loose as much as the other divisions
That is interesting, the chinese now making one of the military trucks for the US Military.
50LTRv8
Thats ok most of the interest the USA has to pay back on it's gazzillion dollar loans is going straight to China since they bailed them out of this shit, few Hummers wont make any difference
I was thinking more from a security standpoint. There was concern in the US Gov once after china got into IBM through lenovo and if they would use their computers or not.
We will see I guess
50LTRv8
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