• Mar 26, 2006
According to Graeme Maxton of Autopolis, General Motors may consider selling off its Australian Holden brand.
The reason, interestingly, is Holden's profitability. Maxton points out that GM is desperate to make money to pay off its enormous--and fixed-- liabilities. It has already sold its Subaru stake and most of its Suzuki shares, and has cut its investment in Isuzu. Recently, the world's largest automaker has also sold its property financial branch. Unfortunately, Maxton asserts, this puts the company in 'death spiral' where less people will be willing to purchase its products and assets, deepening its debts. GM would then have to possibly offer Holden for funding.

"The question for Holden is who would buy it," he said. "There are actually not many companies except maybe a Chinese maker who would buy it right now."

A detailed discussion can be found at the link. Take a look and sound off in Comments.

[Source: The Weekend Australian]


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    • 1 Second Ago
  • 21 Comments
      • 8 Years Ago
      Maybe toyota would buy it.
      • 8 Years Ago
      Holden has a very good group of talented engineers who are renowned for their cost effective and efficient work. Perhaps GM could provide outsourced automotive engineering services? Given the competitive nature of the auto industry there are probably a number of organisations that would happily pay to learn techniques in reducing R&D costs.
      • 8 Years Ago
      They should sell Saturn but keep the Sky and slap a bow tie on it.
      • 8 Years Ago
      Sure GM hasn't officially said anything about this, but knowing their shortsighted business decisions in the past it wouldn't surprise me.
      • 8 Years Ago
      The one that's a lot faster and safer than the old "classic" GTO phil? Plus it was Americans who beat it to death with an ugly stick, Holden's car actually looks quite good.
      • 8 Years Ago
      I never like when auto brands change ownership. It is very disturbing in my opinion.
      • 8 Years Ago

      Of course you all realize that this all pure speculation by this analyst, right? GM hasn't come out and said anything publicly and no new board members have said or suggested anything. This is the first time I've heard this, and it doesn't surprise me that someone from Australia, who is very far removed from the situation in Detroit, would be the only analyst speculating that this would even be a possible scenario.

      All I can say is that I hope GM doesn't get rid of Holden. From what I understand, they're the division in charge of the next generation of affordable (not Cadillacs) rear wheel drive cars. If that program gets cancelled (i.e., Camaro), then I'll forget about GM, and very quickly.

      I don't know, Australian media is probably similar to ours - always present the worst case scenario to sell magazines and newspapers. More than likely GM isn't considering this.
      • 8 Years Ago
      How would they continue to make that pathetic excuse for a GTO?
      • 8 Years Ago
      Very unlikely. Holden is far too integrated into GM's other operations. In the end they'd only be selling the Holden name, which could not be worth terribly much to others, while it would deprive GM of the Australian market. It's not a large market, but by the same token the company couldn't be worth much to others.
      • 8 Years Ago
      #11
      So will the USA.
      • 8 Years Ago
      I am surprised that there aren't a few Australian companies interested in owning Holden.
      • 8 Years Ago
      Whether this is true or not, GM needs some serious restructuring at the executive level. I,like most Americans would like to see Gm Succeed, but I do not believe that they can do so until they get rid of the incompetent and decidedly un-passionate executives who are running this once-great company into the ground.
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