Holden - 'Back In The Black' In 2010

VICTORIA, AUSTRALIA – April 11, 2011: GM Holden generated a $112 million profit in 2010, as outlined in the company’s financial statements which were filed with the Australian Securities and Investments Commission today.

Holden Chief Financial Officer Mark Bernhard said Holden’s return to profit followed several years of challenging global economic conditions that had impacted upon the company’s sales and overall financial performance.

“The economic climate experienced during 2008 and 2009 required us to improve our structural cost base and business model to ensure the long-term profitability of our domestic business,” Mr Bernhard said.

“The measures we took to re-structure our organisation and reduce costs during this period saw us emerge as a leaner, more flexible automotive manufacturer.”

In 2010, Holden domestic vehicle sales were up 11 per cent from 2009, vehicle exports rose 13 per cent and engine exports were up 25 per cent. This growth was underpinned by more efficient and robust manufacturing, delivering consolidated revenue of $4.4 billion in 2010 compared to $3.8 billion in 2009.

Holden continues to be one of Australia’s most significant investors in Research and Development, spending $179 million in 2010 (up from $146 million in 2009) and investing in the future of automotive manufacturing in Australia.

In 2010 Holden also carried out significant work across the business to localise engineering and manufacture of Australia’s only locally-built small car, the Holden Cruze, which launched in March this year.

Mr Bernhard said the investment to produce a small car alongside Commodore at Holden Vehicle’s Operations in South Australia formed an important part of Holden’s long-term strategy.

“We are pleased to announce a return to profitability, and to achieve our goal of putting Holden ‘back in the black’ in 2010, but sustained business performance, and our ability to meet the needs of the Australian market, is critical for Holden’s long-term viability,” he said.