Holden: Business As Usual
The Daewoo-sourced Holden Cruze|
will be available this month.
2nd June, 2009
- 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 car line 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 last night it has taken court action in the US to launch a
"New GM" following the failure of General Motors Corporation to recover from the financial stress it
had been enduring for some years.
“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 programmes 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,
“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 preferred 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 operating costs, and with our operations positioned
for long-term success.”
KEY FACTS - Holden
- Holden employees more than 6,000 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 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
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