Gloomy Outlook For Holden After Huge Losses
It just ain’t getting any better at cash-strapped Holden.
After losing an export order for Pontiac vehicles earlier in the year and putting their Elizabeth, SA workers on a one week on, one week off roster, a form of job sharing, Holden have announced an annual loss of some $70mil. for the ’08/’09 financial year, with a drop of $300mil. in total revenues.
Whilst not as severe as Ford Australia, who recorded a stunning $274mil. loss for ’08/’09 it still raises further questions about Holden’s long term prospects.
Couple the local problems with its parent’s Chapter 11 bankruptcy, it needs an eternal optimist clad in rose coloured glasses to forecast a rosey future.
Perhaps the biggest question to ask is whether they can continue with their planned introduction of the new Cruze small car onto local production lines.
The recently announced and highly lauded small car is currently sourced from Korea, but plans are afoot to gear up for local production during 2010.
This will require a great deal of capital investment, and that will be difficult to get without either Government or Head Office assistance
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