General Motors’ Australian affiliate Holden today announced a record after-tax profit of $A285 million ($US154 million), writes Mike Duffy.
The spectacular result was 20% higher than 2000 and was achieved by the best domestic sales for 28 years.
It was the first year Holden’s turnover had topped the $A5 billion mark with revenue of $A5.573 billion, 18% up on 2000.
The company produced 132,390 cars at its South Australian assembly plant and 255,308 engines at its plant in Victoria.
Holden sold 165,577 locally-built and imported cars – 135,339 passenger vehicles and 30,238 commercials.
Export earnings reached $A1.16 billion from the sale of 28,784 vehicles – 20,931 Chevrolet-badged models to the Middle East alone – plus 150,555 four cylinder engines.
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By GlobalDataThe company paid a $A251 million dividend to GM, following a two year break.
Holden’s handsome profit overshadowed its rivals – along with its market leadership of 21.4% of the total market and 25.6% of the
passenger car segment.
Mitsubishi Motors Australia has already announced a $A16 million profit following a $A186 million loss the previous year while Ford Australia lost $A5.5 million in 2001 following a $A16 million profit in 2000.
Toyota Australia is not due to report for another two weeks, but is expected to book only a marginal profit.
Holden chairman and managing director Peter Hanenberger said the engineering work necessary to export the Monaro Coupe to the United States and the UK was only weeks off completion.
He said growth was also expected in exports to South Africa and South America (which also takes Chevrolet-badged Commodores).
Hanenberger said demand for the Chevrolet-branded Commodore and Statesman remained consistent in the Middle East despite fears of a downturn following the September 11 terrorist attacks in the US.
Holden spent $190 million on research and development during 2001 – up 27% on 2000 – on the new Cross8 all wheel drive luxury crossover and future models including the VY and VE Commodore updates.
“Holden’s vision is to participate in a number of international markets to strength our ability to compete at home,” Hanenberger said.
“Holden is no longer viable relying on one market.”
Only through continued growth in both domestic and export markets could Holden sustain the capital expenditure needed to become a global niche manufacturer building 180,000 cars a year.