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VE money making

Discussion in 'VE Holden Commodore (2006 - 2013)' started by Evman, Jul 28, 2006.

  1. Evman

    Evman New Member

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    Everyone's been going on about how this might have been a huge mistake for Holden, so I did some maths. June commodore sales were a bit over 5000 commodores. If Holden makes $50 per commodore at this sales rate, it will have made $1.5b in 5 years time, allowing for extra money into new models. I don't think this is too bad, because even if the VE doesn't bring back large car sales, surelly it'll be enough to slow or stop the drop in sales. Besides, Holden are looking extremelly closely at exporting the commodore. By the way, the LWB model sales will increase profit even further.
     
  2. vy_storm

    vy_storm just another moderator... Staff Member

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    In reality Holden don't need to sell a single commodore in Australia to remain afloat. Export sales and potential new markets will keep them going to some extent. Unlike Mistubishi, where if they don't secure some export sales it will most likely signal the death of them making a local large car in oz.
     
  3. Scotty_Doesn't_Know

    Scotty_Doesn't_Know Don't Tell Scotty...

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    Mitsubishi don't make a local large car in Australia... Not since the Magna stopped production but even the Magna was on the borderline between medium and large. NO WAY four adults would fit in a Magna and they got even LESS chance now in a 380...
     
  4. monaroCountry

    monaroCountry New Member

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    The VE platform (Zeta) is the main money maker. This will become the architecture of several hundred thousand mid to large RWD cars for GM.

    Each and every single unit sold, Holden will get a little $$$$, since they own and developed Zeta.
     
  5. vy_storm

    vy_storm just another moderator... Staff Member

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    Well that doesn't stop mitsubish from calling it a large sedan....... it's not as small as some people think actually.
     
  6. Evman

    Evman New Member

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    I think Holden has a very secure future ahead of them
     
  7. jules

    jules we like the bun

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    the 380 is a large car in my opinion. i've sat in it right next to the VZ and the difference was marginal, the 380 was only slightly smaller.

    in my view, holden face some major problems with the VE and as has been said its based around fuel pricing. people are moving away from big cars and engines, not just in australia but in countries like the US as well.

    this is not rocket science, their market is shrinking. as fuel prices are unlikely to ease and probably will get worse, the problem will only get bigger for them.

    this will hit cars like the 380 before it hits VE and Orion (ford) but once mitsubishi folds in australia the parts industry will take a big hit and that hurts holden.

    there's no doubt holden's future has some big questions surrounding it. they're in good company. in fact GM may itself fold before too long, which is a big problem for holden.

    the global car making industry is haemoraging right now. things are likely to be arranged quite differently in 10 years time to what they are now.
     
  8. Evman

    Evman New Member

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    Don't forget Holden build 2.8 and 3.2L V6's. If fuel economy was really damaging them, there'd be no problem for them to put a smaller engine into the commodore
     
  9. greenfoam

    greenfoam New Member

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    Holden don't need to make the Commodore into a small car, they allready have plenty of small cars for sale in the showrooms. The Commodore is just the big car that they offer and if large car sales go to almost nothing well big deal, they will sell more small cars, less large cars and nothing will change. The point is you still need to offer a large car because some people need a bigger car. You also need to offer a manual budget model because some people need that too, Holden don't seem to get that though *slap* :)
     
  10. vztrt

    vztrt New Member

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    Holden will keep offering a large car (if GM dosn't fold) the question is whether it will be an import as if the sales numbers are too small they might just import them from the US or more likely Korea.
    If Mitsubishi and Ford go down in Oz I'm 95% sure production and design of Commos woint last too long here.
     
  11. LeBoofer

    LeBoofer Guest

    Since we're off in a tangent, if the loss of sales due to various factors (eg fuel price, etc) won't kill the local car industry, I think China may lol, but seriously, the car industry in China is growing and growing and is currentliy massive. They can produce cheap and somewhat 'decent' car, which I feel may steal sales away from the locals, and if this occurs, effectively lowering the profit from local sales of Holdens. We will of course, have to wait as time will tell if the Chinese manufacturers make a dent in the local industry.

    Back to the topic, I think Holden will be right for now. The new commodore will spark enough interest at least in the short term for Holden to recover the initial costs. Also I dont think we have to worry about GM folding any time soon, a company as large as that will be able to survive for a while (bar Enron ;))via cost cutting (which unfortunately means more job cuts, etc). I think GM has realised the errors of its ways and will develop cars which will appeal to the masses, rather than run of the mill vehicles.

    The future for the Australian car industry is sure to be very interesting!
     
  12. Scotty_Doesn't_Know

    Scotty_Doesn't_Know Don't Tell Scotty...

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    There will ALWAYS be a market for large 6 and 8 cylinder cars in Australia... Anyone who says or thinks otherwise is deluded. Why can't people understand the price of fuel rising from 89.9 cents per litre to 149.9 cents per litre is not a huge increase at all?

    $63 for 70 litres goes to $105 for 70 litres. That's only $42 dollars more. Other statistics also show that we are consuming more than ever before. Luxury items like flat panel tvs, eating out or eating take away more often, etc... A family of 4 isn't likely to get much change from $40 eating a single meal from MacDonalds or KFC these days. Three packs of cigarettes equals more tha $40. Case of beer ranges from $30 - $60 and you can't buy a bottle of rum for less than $40.

    Movie tickets are nearly $20 each for adults... Hell you pay nearly $6.00 for some cups of coffee.

    We live in a modern society with so many luxuries that compromises can easily be made so as to appreciate the brilliant engineering and design quality that goes with owning the new V6 and V8 Commodores. If anyone disagrees with that then they haven't truely appreciated such vehicles anyway so really aren't missing out on much.

    And just to squash the "large car market is shrinking" noise, the Commodore was 2nd to the Toyota Carolla in the July new car sales figures. J U L Y sales figures... Where EVERYONE who would be looking for a new large car knows the VE is going to be released but still wants big, V6 or V8 NOW! Commodore sales are going to steadily increase with the release of the VE... It's only common sense that tells you that.
     
  13. greenfoam

    greenfoam New Member

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    The new RWD Hyundai V6 (also possible V8) will be the machine to have in a couple of years anyway
     
    Last edited: Jul 29, 2006
  14. jules

    jules we like the bun

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    as parts makers pack up and go home to china or wherever, the viability of the local car making industry reduces. this is already happening to some degree and if one of the 4 locals closes down, there will be a knock on effect.

    secondly ford and GM are pretty close to going under, their stocks are virtually junk on the market. mitsubishi isn't that much better. the only really strong company of the 4 locals is toyota. their local operation cannot survive on its own as a manufacturer, in fact toyota has recently restructured its australian operation with an emphasis on R&D rather than designing and building the local camry/aurion.
     
  15. Scotty_Doesn't_Know

    Scotty_Doesn't_Know Don't Tell Scotty...

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    I love it how so many people state GM and Ford (or ANY car manufacturer for that matter) are close to going under. It's hillarious!!! There simply are ZERO facts to back any of that up. Because a share price is low doesn't mean the company will fold. Both GM and Ford are two of the largest global companies in the world with their fingers in so many pies... There is no way either of them will fold any time soon.
     
    I just want one likes this.
  16. jules

    jules we like the bun

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    the most likely scenario is they'll get bought out, like chrysler did.

    the germans pronounce 'daimler-chrysler' with a silent 'chrysler'.

    sorry but if you're a shareholder in GM at $1 a share (it's not a buck, but work with me) and hyundai makes a buyout offer at the equivalent of $1.50, they'll go for it. it doesn't matter how big the company is, money talks.
     
  17. squire_j

    squire_j New Member

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    hehehe
    thast $15m, not $1.5b
    $50/car
    5,000 cars per month is 60,000 cars per year
    that makes it $3,000,000 per year (at $50 per car)
    over 3 years, thats $15,000,000, not $1,500,000,000.

    to get to 1 billion over 5 years, they'd have to add $334 to every commodore sold. Yet the price has dropped since the VZ... go figure
     
  18. greenfoam

    greenfoam New Member

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    You would want to hope you could make 300 each on something that you sell for 40 grand:p, you know mail order ls1 tuners make that on each tune :D that's funny when you think about it
     
  19. Scotty_Doesn't_Know

    Scotty_Doesn't_Know Don't Tell Scotty...

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    Well the government discounted prices I can get takes off $9000 - $10000 for any of the new VE's. So there has to be a huge profit margin somewhere? Or is it the dealers with those margins? What do Holden actually get for the cars?
     
  20. Evman

    Evman New Member

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    Hahaha...I was curious as to why it seemed so little lol..thanks for the correction. Still, $334 isn't a massive amount. I would say that due to the use of more overseas built products, a more effiecient build process, and better sourcing of materials, would have all lead to them being able to use much higher quality materials (such as the "ultra super high-strength steel" B-pillars) at a total cost similar to that of the VT-VZ's. On that note, I think Holden would have made quite a substancial profit from the outgoing Commodores...
     

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