07 May 2012

GM Holden recorded a net profit of $89.7 million in 2011 continuing the positive financial results from 2010 and establishing a solid foundation for the future.

Holden’s consolidated revenue was down slightly from $4.4 billion in 2010 to $4.3 billion in 2011 due to a softening of the large car market and shortages of some imported vehicles in the important light commercial and medium SUV segments.

The results also show Holden continues to make a strategic contribution to advanced manufacturing, design and engineering in Australia, spending $231 million on R&D in 2011, up from $179 million in 2010. This takes Holden’s total R&D investment to more than $1.3 billion over the last five years.

Holden Chief Financial Officer George Kapitelli said Holden’s second consecutive year of profit was driven by the success of the Australian-built Cruze small car and a leaner cost structure.

“Local car makers face tough economic conditions with the high Australian dollar, higher prices and disruption in the local supply base and increasing competition and segmentation in the market,” he said.

“After the financial crisis we reshaped our business to improve structural cost, reduce our reliance on exports and bring the Cruze into local production so we could continue to make cars in Australia. Now around 60 per cent of our Australian sales are Australian-made cars, this is a great result.

“We’re running our business responsibly and sustainably for the long-term. We’re making a strategic contribution to Australia, we’re committed to advanced manufacturing in this country and we’re committed to creating new opportunities for suppliers.”

Holden vehicle production was up 36.8 per cent in 2011, with 90,424 cars made in Elizabeth, South Australia, up from 66,061 in 2010. Engine production was up 2.9 per cent, with 101,019 engines produced in Port Melbourne, Victoria in 2011, up from 98,146 in 2010.

Holden vehicle exports were up 54.3 per cent in 2011, with Holden shipping 12,068 cars to the Middle East, New Zealand, North America, Brazil and South Africa. Holden’s engine exports were up 14 per cent to 57,792 units with V6 variants exported to South Korea, China, Thailand and Germany.

As reported in January, Holden sold 126,095 vehicles in Australia last year, down 5.1 per cent on 2010. Commodore and Cruze were top-five selling cars and Holden was the second highest-selling brand in Australia with market share of 12.5 per cent.

For more information:
Interview with Holden CFO George Kapitelli on Holden’s new blog
Holden media site or follow us on twitter @holdennews