Holden to Be Part of New GM, Out of Bankruptcy Threats

Since the parent company has filed for Chapter 11 in the United States, there are numerous rumors surrounding GM's brands outside the country, with some of them pointing to bankruptcy as well. However, that's not the case of Holden, the Australian brand belonging to General Motors, which will be a part of the New GM, Holden Chairman and Managing Director, Mark Reuss, said today.

Just as we told you yesterday, Holden underwent a strong restructuring process that helps the company stay away of bankruptcy threats. In a press release rolled out today, Reuss assured that GM's filing does not affect Holden's employees and supplier payment arrangements, dealer and warranty arrangements, local design, engineers or manufacturing operations.

“Holden is a subsidiary of GM but we are a corporate entity in our own right – an independent company under Australian law," Reuss said in the statement.

“We don’t anticipate this decision will have any direct impact on Holden’s workforce, dealers, or suppliers. Holden customer warranties are not affected and we continue to deliver the sales and service experience that our customers expect. We wouldn’t normally issue statements to highlight nothing has changed, but we appreciate that customers will naturally ask questions about this sort of announcement from the US.”

Holden currently has a total workforce of 6000 people in Australia and New Zealand and spends about $500 million per year on employee wages. The company is now getting ready to debut an improved version of the Commodore, the best-selling model in its whole product range, which will rely on exactly the best two factors demanded by a difficult economic environment: low fuel consumption and reduced emissions.

“We intend to maintain our focus on Holden product programs and activities. That means technology improvements to our best selling Commodore range, launching the all-new Holden Cruze this month, and the introduction of our locally-built fuel efficient, four cylinder small car next year. We continue to run full operations at Elizabeth and Port Melbourne, producing cars for our 300-strong independent dealer network," Reuss said.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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