Big $ Loss in 2006 for Holden

[b2tf]

Originally Posted by XCSEDAN

:
YAY!!!!

Not yay at all. Holden and Ford are very dependant on each other whether you like/realise it or not. Lose one, and the other one won't be too far off.

[b2tf]

how the hell did i i manage to post the first reply when there were about 6 before my post? :

[ltd]

Originally Posted by Barraxr8

Thats two $140+ million dollar losses in a row - that eats up a lot of 'cash'. Holden will be scrambling to cut costs and rein in inefficient / money wasting parts of their business.

VE launch is NOT the only reason for their losses. They have tried to be too much to too many market segments and tried to grow their business too much too soon.

If Orion takes some of their large car segment volume away from them they'll be in BIG trouble. With the strong aussie dollar they won't make much money on the Pontiac exports to the US.

In all the Aussie automotive industry is in strife - something needs to give sooner or later.

Very well said.
Agree 100%

[Fordman1]

I've said this in a few threads before. Holden are in trouble ATM. These results are for 2006. However VE cost big $ and now they're not selling as many as they budgeted for . Their 2007 results will be interesting even though Mooney has put a positive spin on the situation - I'll wait and see !

http://news.ninemsn.com.au/article.aspx?id=75366

[XCSEDAN]

:
YAY!!!!

[Smoke Pursuit]

ford only lost 40 million in aus was that right??

Therefore they beat holden by 100 million, although the difference was probarly contributed by the VE Launch...

[fou_bleu]

But still, Ford is waaaaaaaaaay behind in develpoment! The Orion should have come out last year to keep the money coming in, so what a waste of money 07 will be!

[Fordman1]

Thats two $140+ million dollar losses in a row - that eats up a lot of 'cash'. Holden will be scrambling to cut costs and rein in inefficient / money wasting parts of their business.

VE launch is NOT the only reason for their losses. They have tried to be too much to too many market segments and tried to grow their business too much too soon.

If Orion takes some of their large car segment volume away from them they'll be in BIG trouble. With the strong aussie dollar they won't make much money on the Pontiac exports to the US.

In all the Aussie automotive industry is in strife - something needs to give sooner or later.

[Fordman1]

Originally Posted by b2tf

how the hell did i i manage to post the first reply when there were about 6 before my post? :

It looks like the server clock has been moved back 1 hour.

We're stuck in the "Twilight zone" !!

[shedguy]

oh dear .... here we go again .... when we go back this time, can I have a younger wife plz ...

Quick q ... why is everyone SO caught up on the new Falc ??? Ford just got it right and GMH just stuffed it ....... what more do ya want??

[sleekism]

I'm so very confused :

If we are going back in time I better buy a few GTHO's :

[Fordman1]

Originally Posted by Barraxr8

I've said this in a few threads before. Holden are in trouble ATM. These results are for 2006. However VE cost big $ and now they're not selling as many as they budgeted for . Their 2007 results will be interesting even though Mooney has put a positive spin on the situation - I'll wait and see !

http://news.ninemsn.com.au/article.aspx?id=75366

Ok back on topic....

Here is the article from ninemsn:

Holden posts back-to-back losses
Friday Jun 15 18:26 AEST
Car maker GM Holden has posted back-to-back losses, the latest a $146.56 million slide into the red in 2006.

The after tax loss last year followed the $144.6 million the company lost in 2005.

But Holden chairman and managing director Denny Mooney insists the company remains upbeat about its future, both in the domestic and export markets.

"Obviously, it was not a great result ... but we're confident about the future," Mr Mooney said.




"We still feel confident in where we are and where we're going."

Holden directors said the results were impacted by one-off costs and accounting adjustments.

The company paid out $20 million in termination payments following staff cuts both at its Elizabeth assembly facility in Adelaide and the Melbourne engine plant.

Tooling revaluation costs hit the bottom line to the tune of $69.7 million while there were also costs associated with the launch of the new VE Commodore and WM Statesman and Caprice models.

Domestic sales were down by 16.2 per cent last year to 146,511 vehicles pushing total revenue down 7.8 per cent to $6.149 billion.

Holden said vehicle exports fell from the record levels of 2005 to 46,074 in 2006.

But it said engine exports rose 6.8 per cent to 212,266, taking total export revenue to $1.852 billion.

Mr Mooney said while senior executives in Holden's General Motors parent company in Detroit would have preferred a better result in 2006, they understood the factors behind the performance and were equally buoyant about the company's plans for the future.

The Holden boss said the biggest challenge going forward was the continued strength of the Australian dollar and the relative weakness of the Japanese yen.

That made it both difficult for local car producers to sell competitively against Japanese imports in Australia and also impacted on the competitiveness of exports.

"It's very difficult as a local manufacturer to sell in our market and command a price," Mr Mooney said.

"The strong dollar has allowed the importers to really take prices down which has put a squeeze on our margins.

"Plus the strong dollar makes it more difficult to export."

But Mr Mooney said he remained "bullish" on the company's export business after setting up the local manufacturing operations to run lean and seize opportunities to sell in niche markets, particularly through Asia.

Holden also was looking forward to the start early next year of exports to the US of the latest VE Commodore which would be badged there as the Pontiac G8.

Mr Mooney, who leaves Holden at the end of July to take up a senior position with GM in the US, admitted it was personally disappointing to sign off on two losses.

"On the other hand I know where the business is right now, I know what's coming down the road in the next couple of years," he said.

"I feel pretty confident and I feel pretty good about where we're going."

[shedguy]

Originally Posted by sleekism

I'm so very confused :

If we are going back in time I better buy a few GTHO's :

Make sure you grab the V10's : :

Oh dear .... sorry!

[Falcon Freak]

Even if the new Orion doesn't beat VE, it will take away more sales in 2008 then what the BF MkII is doing in 2007 which will make Holden's situation worse then what it is.

FF

[vztrt]

Ok, just jumped out of the time machine, Holden have better backing from the US than FOA do as they have a better export market and the VE is a world platform. Ford is still struggling and its still a while off till Orion is launched. But Ford are working hard to try to get as many bugs out of Orion till its launched.
One good thing I read about ford is that they don't have excess dealer stock, so that means less down days.

[Fordman1]

Originally Posted by vztrt

One good thing I read about ford is that they don't have excess dealer stock, so that means less down days.

It's not common knowledge but Holden have had down days this year !!

[Smoke Pursuit]

VZTRT wahts the go with production, it seems dealers are very thin at the moment, is Ford building less cars or what?? They are only selling 3000 on average a month so they arent selling everything they are building, theres obviously an issue somewhere..

[Smoke Pursuit]

Originally Posted by Barraxr8

It's not common knowledge but Holden have had down days this year !!

Holdens still got a glut of 06 stock around, not to mention all the 06 demos that are available...

Its a good time to be buying a new car me thinks.

[sleekism]

Better time to be buying a used Falcon with the beutiful resale values.

If Holden is at a loss with a brand new car and a bazillion export programs there is definately something wrong.

Perhaps GM is shovelling it's debt into it's subsidiaries?

Holden is taking on a greater role in the GM world maybe they are getting more work without extra money.

[Falcon Freak]

This is how Ford Australia has performed over the last 10 years:

2006 - $40.3 million loss
2005 - $148.2 million profit
2004 - $185.6 million profit
2003 - $155 million profit
2002 - $20.4 million profit
2001 - $5.5 million loss
2000 - $16.1 million loss
1999 - $82.3 million profit
1998 - $58 million profit
1997 - $180 million profit

Overall performance last decade: $767.6 million profit

FF

[vztrt]

Originally Posted by Barraxr8

It's not common knowledge but Holden have had down days this year !!

I wouldn't be surprised, the whole cutting production story they had a few months ago gave me the indication that they're making to many units. Also when the VE first came out they were building more units for export then they were suppose to.

Seeing as ford reduced the number of units, it's helped them out. But then again this is the car industry and it goes in waves.

Originally Posted by LSTerritoryGhia

VZTRT whats the go with production, it seems dealers are very thin at the moment, is Ford building less cars or what?? They are only selling 3000 on average a month so they aren't selling everything they are building, there's obviously an issue somewhere..

Near the end of last year Ford reduced the number of units to 380 a day (gross, so they can build 322 and not get in trouble) This was a huge difference from the 550 a day at the start of 06.

[Falcon Freak]

LS1 forums haven't yet mentioned these latest financial figures.

I wonder how much better Holden's financial figures would be if they subtracted their advertising budget and the cost to run four HRTs in the V8 Supertaxi championship? _2:

FF

[starwars_guy456]

Falcon freak, any chance of you posting up year-end market share figures for the different manufacturers for us?

[sleekism]

Did Ford Australia finance the orion program itself?

It would also be interesting to see the different profits for different vehicles eg.xr6, territory, GT

Does Ford turn a profit for their V8 program or is it a case of loss leader?

Apparently FPV is on a shoestring budget and are having trouble funding programs maybe Ford should pull out of supercars and pour money into FPV.

No offence but V8 supercars are pretty boring I actually saw some old footage of Dick Johnson at Bathurst in the Green Tuffs Falcon and it absolutely blew me away how good it was to watch.

I think the V8 supercars is a waste of money, I think the Austrlian Saloon Car Racing is better to watch, more relevant and a hell of a lot cheaper.

How much is wasted in developing the 5 Litres for Supercars that could be used in developing the Barra and the Boss.

Gives me an idea for a new thread.

[outback_ute]

Sleekism I believe they do have to fund Aust programs internally, certainly Ford US does not have any spare money...

Not sure that racing 6cyl AU's is more relevant to selling BFs than V8SC - if you had mentioned the 3 production car series I would have agreed with you!

[sleekism]

True but racing AU's are relevant to me lol

[uranium_death]

Good to see Ford do well in the past 10 years, but Ford needs Holden. Rivalry is what makes Ford push to new heights. Regardless of how good the BA/F models have been, the VE is newer, more favourable for fleets and private buyers (brand-new market only) and the car has fixed many of Holden's downfalls.

Ford need to respond, and respond they shall. It's a ping pong match. Ford gets ahead, then Holden responds, Ford responds etc. They are the only 2 RWD cars so if HOlden went, we would lose an integral member of the Australian motoring industry. If Toyota went, I wouldn't care.

[sleekism]

Amen to that!

[Falcon Freak]

Originally Posted by sleekism

Did Ford Australia finance the orion program itself?

Ford US is almost bankrupt. Ford Australia must remain profitable to be able to finance their future projects. The septics in the parent company only give them grief.

FF

[Miyagi]

Does everyone else seem to think like me that with the Mondeo coming in that the Orion will be the last of the large sedans from Ford AU (unless we start exporting the platform)?

It's about time Ford and Holden re-tooled their product lines and started delivering AU built small and midsized cars that are RELEVANT to the Aussie market.

They still have the brand loyalty of us but with so many other options providing more relevant application of our hard earned dollars it's hard for everyone not to test the market.