Holden Posts Worst Loss in History

Bad as it was for the automotive industry, 2009 proved to be disastrous for GM's Australian arm, Holden. The local carmaker in the end of March a net loss of $210.6 million, the worst in the company's history and the fifth consecutive negative year.

According to Holden representatives however, the loss was not a result of the crisis acting on Holden itself, but on GM's Pontiac. As the American carmaker pulled the plug on the brand, the Australian built G8 died and took with it the good sales levels of other years.

“Much of our loss was incurred as a result of GM’s decision to discontinue the Pontiac brand in North America,” Holden's chief financial officer Mark Bernhard said according to GoAuto. “This action resulted in the high-volume export program of the Holden-built Pontiac G8 range ending in April."

With other of Holden's export markets feeling the pressure of the crisis, as well as with the impact the crisis had on the local one, Holden's revenue declined from $5.8 billion in 2008 to $3.8 billion in 2009.

But it's not all lost, claims Holden. According to the company, recent months brought it back in black. Helped by the restructuring measures set in motion, as well as with the prospect of reaching other export markets, Holden hopes to return to comfortable financial levels.

“These streamlining initiatives, as well as improvements in the domestic market in Q4 2009 and January and February 2010 saw our sales and financial performance improve, with the company making a profit in those months," Bernhard concluded.