Holden for sale? per Austrailian wed site.

[hyperv6]

Here is a web site from down under claiming Holden may be put up for sale?

www.theaustralian.news.com. makes this claim and points out for is in as bad of shape as GM but is in denial unlike GM which only is going to make things worse for Ford.

I would like to say I don't think GM would sell Holden and this is just rubbish. Can anyone shead any light on this as just being a wild false story?

[Drew Dowdell]

Doesn't holden actually make money for GM?

[Camino LS6]

I'd say that there is exactly zero chance that this is true.

[hyperv6]

Here is the full story for what it is worth. Be fowarned, I don't know this site and how reliable it is.

Holden could be sold as GM goes into 'death spiral'

Robert Wilson

March 25, 2006

HOLDEN could be sold off if a desperate General Motors continues to fall into a financial death spiral, a global automotive expert says.

The principal of international automotive strategic consultants Autopolis, Graeme Maxton, said GM was already taking desperate measures to avert the greatest crisis in its 98-year history and sell-offs of its better performing divisions couldn't be ruled out.

"If you look at in terms of pure economics, their investment in Australia must be under question," he said yesterday.

"GM is having to sell off the family silver and close down anything that is not economic to cut costs in order to survive for the next few years," he said.

The Detroit-based automotive giant had already begun disposing of its shareholdings in Japanese makers Isuzu, Subaru and Suzuki, despite these being strategically significant ventures, Mr Maxton said.

And GM yesterday announced it had sold its property financing arm, GMAC Commercial Holding, for $12.5 billion.

"All of these are desperate measures to stay alive. What GM is waiting for is when enough of its pensioners die off that it can re-fund itself and invest for growth again. But it's absolutely hidebound right now. It has so much debt and so many liabilities that it has to simply cut them loose," Mr Maxton said. "They can't do anything until their situation improves but they've got themselves into something of a death spiral because the more they have to cut, the more consumers stay away from their products, the more their market share goes down and the more their losses go up."

Mr Maxton acknowledged Holden was not in the same dire sales situation as GM's US brands whose combined market share fell to a historic low of 25 per cent last year. But he said that the more profitable Holden was, the more tempting it would be for GM to sell it off.

"The question for Holden is who would buy it. There are actually not many companies except maybe a Chinese maker who would buy it right now," he said.

GM's traditional global rival, Ford, was in just as much financial trouble, Mr Maxton said.

"Ford is in many ways in exactly the same situation. The big difference is that GM really does understand how serious its situation is," he said.

"Ford is still pretending it's not that serious but their market share has fallen even more than GM's. The company hasn't woken up to what it has to do."

The cycle of cutbacks and rationalisation that threatened Holden also applied to Ford Australia, Mr Maxton said.

"It's absolutely the same situation but it may take a bit longer because Ford headquarters is in dAnd GM yesterday announced it had sold its property financing arm, GMAC Commercial Holding, for $12.5 billion.

"All of these are desperate measures to stay alive. What GM is waiting for is when enough of its pensioners die off that it can re-fund itself and invest for growth again. But it's absolutely hidebound right now. It has so much debt and so many liabilities that it has to simply cut them loose," Mr Maxton said. "They can't do anything until their situation improves but they've got themselves into something of a death spiral because the more they have to cut, the more consumers stay away from their products, the more their market share goes down and the more their losses go up."

Mr Maxton acknowledged Holden was not in the same dire sales situation as GM's US brands whose combined market share fell to a historic low of 25 per cent last year. But he said that the more profitable Holden was, the more tempting it would be for GM to sell it off.

"The question for Holden is who would buy it. There are actually not many companies except maybe a Chinese maker who would buy it right now," he said.

GM's traditional global rival, Ford, was in just as much financial trouble, Mr Maxton said.

"Ford is in many ways in exactly the same situation. The big difference is that GM really does understand how serious its situation is," he said.

"Ford is still pretending it's not that serious but their market share has fallen even more than GM's. The company hasn't woken up to what it has to do."

The cycle of cutbacks and rationalisation that threatened Holden also applied to Ford Australia, Mr Maxton said.

"It's absolutely the same situation but it may take a bit longer because Ford headquarters is in denial," he said.

Edited March 27, 2006 by hyperv6

[Ghost Dog]

I could see it. I could see SAIC starting with a 49 % interest. they would then be a partner in most of the GMAP operations.

[evok]

This just speculation. Holden is to integrated to be sold off and would not command more than a couple billion at most if 100% is sold.

If GM needs cash, there still is a lot of equity in GMAC. And more interest with potential suitors.

[z28luvr01]

GM is not that dumb. Holden's not quite the "spare part" that the author of this article thinks it is. The bulk of all RWD engineering for GM global is done in Holden, and we could say bye bye to Camaro, Impala, GTO, and any other volume RWD vehicles that GM has planned if they decide to part with Holden. GM looks like it's commited to riding this thing out with the brands it has now. All of them, like it or not, are tightly integrated into GM global, and ripping one out would do more harm than good.

[4gm]

Meh. The new cars Holden are getting are GM's "world" cars with some Holden badges slapped on them so it's not like Holden is spending money hand over fist on their own product programs. I call speculative BS on the article.

[hyperv6]

This just speculation.  Holden is to integrated to be sold off and would not command more than a couple billion at most if 100% is sold.

If GM needs cash, there still is a lot of equity in GMAC.  And more interest with potential suitors.

In other words this would only be just a worse case/ last resort type plan only if it would ever happen?

Edited March 27, 2006 by hyperv6

[Camino LS6]

This is just the random ramblings from the overactive imagination of an alleged "expert". Nothing but a little "fear factor" to sell whatever rag it was published in. No facts, no analysis, not even a good unfounded rumor.

Drivel.

Ignore it, it will go away.

[Cadillacfan]

If anything GM will destroy brands in North America if it gets really bad.

Think about it: Would GM abandon an entire market just to save a few billion dollars? Hell no.

This is the biggest load of crap I've ever read.

The only chances of this ever happening is if GM is bought by Toyota, Pontiac is sold and merges with BMW, and Honda produces a real truck based off the GMT 900 platform.

NOT gonna happen.

[evok]

In other words this would only be just a worse case/ last resort type plan only if it would ever happen?

I do not think it is even an option at this time for the reasons I stated above.

GM USA is just a market and not a definition for the company. GM sells more vehicles outside the US than in. Selling stock in an auto partner (Fiat, Fuji, Suzuki) is one thing, selling an integrated entity (Holden) is something else.

[Sixty8panther]

I heard Lexus is selling Scion to Subaru. :wink:

[thegriffon]

GM Holden also owns GM Daewoo.

[hyperv6]

I do not think it is even an option at this time for the reasons I stated above.

GM USA is just a market and not a definition for the company.  GM sells more vehicles outside the US than in.  Selling stock in an auto partner (Fiat, Fuji, Suzuki) is one thing, selling an integrated entity (Holden) is something else.

Thanks!

[Polish_Kris]

I heard Lexus is selling Scion to Subaru. :wink:

How is that possible if Lexus is owned by Toyota, therefore Toyota owns Scion, and Toyota owns some of Subaru

[Northstar]

How is that possible if Lexus is owned by Toyota, therefore Toyota owns Scion, and Toyota owns some of Subaru

He was joking, can you not hint a little sarcasm?

[Polish_Kris]

He was joking, can you not hint a little sarcasm?   

Dude, showing sarcasm here, is like showing sarcasm over MSN.

LoL

[Robert Hall]

Dude, showing sarcasm here, is like showing sarcasm over MSN.

LoL

On some boards, I used to use <sarcasm> tags... sarcasm is hard to convey in typed text.