Holden to report sales dip

[btm]

Holden to report sales dip

http://www.news.com.au/business/story/0,23636,21006874-462,00.html

By George Lekakis
January 04, 2007 06:00am

AUSTRALIA'S second largest car company GM Holden is set to report a slide in operating performance when it releases its latest financial results in the next few weeks.

The company has lost ground in the Australian car market in the last five years as stiff price competition from importers has crunched its sales volumes.

Holden's share of the domestic car sector has slumped from 21.6 per cent in November 2001 to 15.2 per cent in November last year.

The decline is partly attributable to lower sales of the local flagship - the Commodore - which has suffered an overall decline in sales since 2001.

In the 12 months to the end of November last year only 51,643 Commodores had been sold compared to 78,522 for 12 months to the end of November 2001.

The financial impact of the deterioration in market share is yet to be quantified because Holden has not reported a profit result since 2004. That year is significant because Toyota overtook Holden as the country's biggest car seller in 2004.

Holden reported a $50 million rise in net profit for 2004 to $335.4 million.

But cost pressures have weighed heavily on the car maker in the past two years, with the price of steel and other raw materials soaring to record levels.

Added to those cost pressures is the appreciating Australian dollar against the greenback, which hurts export sales in the Middle East.

Holden chairman Denny Mooney, who took the reins of the company in 2004, last year announced a redundancy program that will attract a restructuring charge.

This will have a negative impact on the 2006 bottom line which will be announced in the middle of this year.

[Mr T]

I wonder if building crap like Crewman and Adventra and droping Opel's in favour of Daewoo's had anything to do with it....


...Just log in here Mr Mooney, There are sh1tloads of mondays experts like me that can tell you where you f...ed up...!!!

[Tfer]

I wonder if building crap like Crewman and Adventra and droping Opel's in favour of Daewoo's had anything to do with it....


...Just log in here Mr Mooney, There are sh1tloads of mondays experts like me that can tell you where you f...ed up...!!!

I am with you Mr T, on this one :dance: :dance: :clap: :clap: but I am a Friday expert tehe

[btm]

i am an everyday expert :p

[MatsHolden]

Come back Peter...

[rjastra]

wonder if building crap like Crewman and Adventra and droping Opel's in favour of Daewoo's had anything to do with it....


hmmm.. go look at the slide in sales of the AH Astra.

[MatsHolden]

All small car sales have dropped recently and the medium/large car sales have begun to increase again. Obviously due to the facts of dropping petrol prices and the release of new medium/large cars onto the market like the VE, new Camry and Aurion. Also keep in mind that overall car sales are down about 5%.

[pred8r]

Holden to report sales dip
The financial impact of the deterioration in market share is yet to be quantified because Holden has not reported a profit result since 2004.

That year is significant because Toyota overtook Holden as the country's biggest car seller in 2004.

Holden chairman Denny Mooney, who took the reins of the company in 2004, last year announced a redundancy program that will attract a restructuring charge.

Hmm...What else changed in 2004???

Thats right the facelift barina, shame on you facelifts :p

[pred8r]

Obviously due to the facts of dropping petrol prices and the release of new medium/large cars onto the market

Maybe they're happy with their little cars and there is nothing 'boat floating' on the market yet, so they are keeping them.

OR

Is there too much choice and people are getting confused and just keeping their little cars.

OR

They are now becoming TOO reliable (great for consumer, bad for economics) and with their longer warranties....

[MatsHolden]

Maybe they're happy with their little cars and there is nothing 'boat floating' on the market yet, so they are keeping them.

OR

Is there too much choice and people are getting confused and just keeping their little cars.

OR

They are now becoming TOO reliable (great for consumer, bad for economics) and with their longer warranties....

Think you miss-read my post, (or i've miss read yours lol) but I was saying that medium large cars sales are on the up and small car sales are on the decline, since the dropping of petrol prices and introduction of new medium/large cars.

[pred8r]

i was getting technical. If small/large car sales drop but medium increase it can mean that large car people are downsizing and small are just keeping them not upsizing. Or just what you said is happening

Statistics can be made to play 'favorites' most of the time. (not real good sentence structure, hope you get my meaning)

[MatsHolden]

Ah yeh I think I get ya.

[cdxi]

I reckon there's a range of factors in Holden's domestic sales slip and they haven't all been brought about by Mr Mooney!

Increased and affordable competition in the market place in all market segments (especially in the Barina, Astra and Captiva classes)
price sensitivity and market positioning - the ZC CD came into the market at a price point some $5K higher than competition. The AH and XC were also viewed as pricey, if quality purchases
cross-market buying (traditional Commode buyers getting into medium/large crossovers, Vectra buyers into RAV4s etc)
impact of "user-chooser" novated lease packages. Commodes no longer are the default choice
increasing fuel costsI suppose a lot of this comes down to Holden not having the product the market was seeking during this time. (God knows why Corollas sell like they do but it must have something to do with price) AH sales certainly aren't anywhere near those of the TS, but it is a differently positioned vehicle now. And, if you add Viva sales, the figures are comparable to the days when the AH and TS sold alongside each other. The Vectra was positioned poorly and never promoted to be desirable and then faded into obscurity. (There are still 2004 build date Vectras available as brand new cars in WA dealerships!!!)

And then the Daewoo factor.....well, if we're objective, Daewoo product may well have stemmed the blood flow. Barina sales have increased to the point where it was the 3rd highest seller in the light car class and the Viva regularly sells around 1000 a month. As committed OpelAussies, we may rue the passing of just about all Opel product here in Australia, but they just weren't priced and equipped at a point the market wanted.

Maybe if Mr Mooney can see his way clear, then the Astra can continue as a premium sector product, supported by small numbers of Corsa badged Holdens and in 2008, the introduction of the Insignia badged Vectra D.

We can dream.....

[MatsHolden]

Maybe if Mr Mooney can see his way clear, then the Astra can continue as a premium sector product

Well considering Holden is still expanding it's Astra range (SRi Turbo Coupe, CDTi, SRi NA Coupe and 5 door, TwinTop), I think the Astra is one Opel sourced product that has a long term future in Australia.

[rjastra]

Think you miss-read my post, (or i've miss read yours lol) but I was saying that medium large cars sales are on the up and small car sales are on the decline, since the dropping of petrol prices and introduction of new medium/large cars.


Not sure how you can say that when the second biggest selling car in Oz is the Corolla.

from smh.com.au


Sales figures for last year showed 962,521 new vehicles were bought - the second strongest year ever, down 2.6 per cent on the record set in 2005 - and embraced small cars in a big way.

[MatsHolden]

Not sure how you can say that when the second biggest selling car in Oz is the Corolla.

from smh.com.au

I didn't say that it wasn't. I said that overall small car sales are on the decline recently. The Corolla can still remain the 2nd biggest selling car with sales declining.

[Mr T]

I reckon there's a range of factors in Holden's domestic sales slip and they haven't all been brought about by Mr Mooney!

Its called miss-management...read what you wrote below and have a think about it.




Increased and affordable competition in the market place in all market segments (especially in the Barina, Astra and Captiva classes)
price sensitivity and market positioning - the ZC CD came into the market at a price point some $5K higher than competition. The AH and XC were also viewed as pricey, if quality purchases
cross-market buying (traditional Commode buyers getting into medium/large crossovers, Vectra buyers into RAV4s etc)
impact of "user-chooser" novated lease packages. Commodes no longer are the default choice
increasing fuel costsI suppose a lot of this comes down to Holden not having the product the market was seeking during this time.

That last sentance sums it up very well...Why didn't they have the right product...???

Torana would be walking out of showrooms by now if Mooney hadn't taken over...mid-size cars with reasonable performance are the flavour of the month.

[Wraith]

Its called miss-management...read what you wrote below and have a think about it.



That last sentance sums it up very well...Why didn't they have the right product...???

Torana would be walking out of showrooms by now if Mooney hadn't taken over...mid-size cars with reasonable performance are the flavour of the month.

I totally agree with all points mentioned above .........

I also believe mid-size cars with reasonable performance will be the flavour for some time yet !

[cdxi]

Its called miss-management...read what you wrote below and have a think about it.

That last sentance sums it up very well...Why didn't they have the right product...???

Torana would be walking out of showrooms by now if Mooney hadn't taken over...mid-size cars with reasonable performance are the flavour of the month.

Very good point Mr T and I note it with respect. However, it wouldn't have been Mooney's ultimate decision to not produce Torana. Holden can only afford a single platform and Mr Opel, Peter Hanenberger, had already committed Holden to the expensive VE project for domestic and export markets. Don't forget there was all that to-ing and fro-ing about the Zeta architecture for North America which would have made sensitivities about Torana even greater. Neither Hanenberger nor Moody are responsible for exchange rates and currency fluctuations, but someone in PH's regime back in the early 2000s must have made the decision to market the ZC as a premium, high-cost product for which the market definitely was not prepared.

It also wasn't Mooney's doing to buy out Daewoo and to have Holden gain the controlling interest, although that has worked in the company's favour - in the short term. Only time will tell what effects the Korean product will have on Holden's reputation.

Don't get me wrong - I wish PH's influence was still alive and well to ensure we still had Euro Barinas and Vectras (imagine the new Corsa and a broader range of Vectras......drool......) in new car show-rooms. But Mooney has done well with what has been available to him.

The Astra knocked up nearly 20 000 sales in 2006 to beome the third biggest seller in its market. And guess what was in at Number 4, with well over 17 000 sales? Dare I say it..... the Holden Viva. Together, these two make Holden the number 2 in this segment, behind the Corolla and ahead of the Mazda3. And with over 13 000 Barina sales - increasing the marque significantly over the XC sales, Holden is achieving better sales with this range of product in this market than it has in a very long time.

Mismanagement of product? It might well be. But Holden is No 1 in the large car segment, No 2 in the compact and No 3 in the light car segments.

My crystal ball is pretty fuzzy, but in the short term, this doesn't look like bad business in a declining market with increased brand availability and competition.

[rjastra]

Torana would be walking out of showrooms by now if Mooney hadn't taken over...mid-size cars with reasonable performance are the flavour of the month.


Mid-sized ECONOMICAL cars (liberty, accord, mazda 6, passat) are the flavour of the month.

AFAIK the only engines initially available for that platform are versions of the V6 we see in the Commodore (2.8-3.6L). Every chance that the "Torana" would be too heavy, too thristy or too expensive to cut it in that market.

If they can't supply a diesel or 4 cylinder petrol then they might as well not bother.

[jvl]

And guess what was in at Number 4, with well over 17 000 sales? Dare I say it..... the Holden Viva.

I am really suprised, I have no idea how Holden managed to sell that many Vivas.... I have the great displeasure of having to drive one of them while my SRiT is in for a service today (courtesy car from Holden).

The thing is awful. Interior is cheap and nasty, the engine is harsh and un-responsive, the steering has no feel whatsoever... I'd rather drive either of the older cars that I have had previously (an 88 Laser/98 Pulsar).

Are they a 1.6L ? as I'm sure that my 98 Pulsar (also 1.6L) was much zippier than the Viva.

Spose I can't really complain as its a courtesy car, however I am looking very very forward to getting back to Holden this arvo and getting my Astra back.

Cheers,

Andrew.

[Shaun]

I would say all Manafacturers have dropped sales. Intrest rates have gone up on Home loans. What happens when that happens? Peoples spending slows down.

[Shaun]

I am really suprised, I have no idea how Holden managed to sell that many Vivas.... I have the great displeasure of having to drive one of them while my SRiT is in for a service today (courtesy car from Holden).

The thing is awful. Interior is cheap and nasty, the engine is harsh and un-responsive, the steering has no feel whatsoever... I'd rather drive either of the older cars that I have had previously (an 88 Laser/98 Pulsar).

Are they a 1.6L ? as I'm sure that my 98 Pulsar (also 1.6L) was much zippier than the Viva.

Spose I can't really complain as its a courtesy car, however I am looking very very forward to getting back to Holden this arvo and getting my Astra back.

Cheers,

Andrew.

Value for money. My cousins GF has one. In a Sedan from. I find them well appointed for the money. You cant compaire a SRi T against one. Price level is different. It would be like saying comparing a Barina to a Statesmans. Or a VXR to a GTS. Different cars and different markets.
Can someone confrim for me though do they have an Opel 1.8 ltr engine ? they sure look like it.

[MatsHolden]

Value for money. My cousins GF has one. In a Sedan from. I find them well appointed for the money. You cant compaire a SRi T against one. Price level is different. It would be like saying comparing a Barina to a Statesmans. Or a VXR to a GTS. Different cars and different markets.
Can someone confrim for me though do they have an Opel 1.8 ltr engine ? they sure look like it.

Nope, not an Opel 1.8L. They use the Family II 4 cylinders.

[jvl]

Value for money. My cousins GF has one. In a Sedan from. I find them well appointed for the money. You cant compaire a SRi T against one. Price level is different.

I understand the whole price point thing.... you get what you pay for.

Also I wasnt so much comparing it to my SRiT, more vs 1998 Nissan Pulsar I had previously, and it was a much nicer car, inside and also to drive.