As Holden prepares to finalise its Australian production shut down later this year and switch to a full-line importer, the company has revealed its financial figures for 2016 - with a balance sheet that finished in the black.
Holden revealed its 2016 financial data on Thursday, with the ledger showing an overall operating profit of $125.5 million - the second consecutive year the company has registered a profit in recent times.
Broken down further, that figure stems from an after-tax profit of $27.3 million for its national sales company operations, while Holden’s manufacturing division chalked up a $125.5m profit.
Those figures aren’t as clear-cut as they seem though - as part of its manufacturing closure, scheduled for the 20th of October 2017, Holden’s parent company, General Motors, has contributed $128.1 million towards the cost of closing the brand’s Elizabeth factory with a further $51.4 million coming from the Federal Government's automotive transformation scheme.
In a statement from Holden the company indicated that its local vehicle manufacturing operations "continued to operate at a significant loss" with a forecast $108 million loss if production has continued into 2018.
Production figures for 2016 saw Holden manufacture a total of 38,677 vehicles (both Commodore and the now discontinued Cruze) with 4191 vehicles exported to to New Zealand, the Middle East, and North America.
Across all model lines the brand sold a total of 94,308 cars in Australia in 2016, a difficult year that saw sales fall compared to 2015 despite a record new car market in Australia.
Hyundai also leapfrogged Holden to become the third-largest vehicle brand in Australia. Holden's story has not improved dramatically in 2017 so far, as it continues to lose market share following an 11.3 per cent reduction in sales.
Figures for Holden could plummet even further after the current generation Commodore winds up, with the large sedan providing a significant proportion of the brands sales - deducting Commodore sales from Holden’s current sales results would see the brand move from fourth to ninth on the sales charts.
Holden does have an imported front wheel drive Commodore replacement scheduled, and more importantly high-volume medium and large SUVs waiting in the wings with the Equinox and Acadia set to replace the aging Captiva - all of which should help balance out the figures going forward.
Holden managing director Mark Bernhard says the 2016 financial figures support the brand’s decision to cease local manufacturing and move to a fully imported range.
"This result highlights the strong profitability of our long-term business plans," Mr Bernhard said.
"We're facing challenges as a business and undergoing fundamental changes, there is no sugar coating that, but our consistent financial results highlight the underlying health of the business."
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