Holden has posted a loss of more than AUD620m (US$579m) for 2013. The GM division blames costs related to closing domestic manufacturing by the end of 2017.
The Melbourne-based company said in a statement that it recorded a AUD500m one-off impairment charge on property, plant and equipment. In addition, the company recorded a AUD122.3m charge for employee separation costs in 2013.
The firm's consolidated revenue increased slightly from AUD4.02bn in 2012 to AUD4.05bn in 2013. This was due to an increase in vehicle sales in the second half of 2013 – up by 17.4% year-on-year - following the launch of 10 new or updated models during the year.
Despite this, the company recorded a net loss after tax of AUD553.8m in 2013.
Holden chief financial officer Jeff Rolfs said the decision to cease domestic manufacturing was the right one to return Holden to sustainable and ongoing profitability into the future.
“We are mindful of the impact on our employees and our financial results, but it was the right decision. Manufacturing vehicles in Australia is, unfortunately, unsustainable,” said Rolfs.
“All three domestic OEMs have now announced they will cease building vehicles as auto manufacturing in Australia faces a perfect storm of negative influences: a persistently high Australian dollar; one of the most fragmented and competitive markets in the world; and higher costs compared to other manufacturing source countries.”
Rolfs said that addressing Holden’s high fixed cost base was key to returning the company to sustainable profitability.