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]