Note to Holden from GM: You're Stuffed

"SilentButNotReallyDeadly...killed by G/O Media" (silentbutnotreallydeadly)
03/18/2018 at 22:14 • Filed to: None

Holden was once a useful, profitable and marketable part of the General Motors empire.

Now it is much like this cheap toy - stuffed.

The new Commodore has just been launched. Just like the Opel/Vauxhall Insignia and Buick Regal...it’s a car designed and built by Opel.

And as we all know, GM quite recently sold Opel & Vauxhall off to Groupe PSA (better known as Peugeot and Citroen) as part of GM’s strategic running away from Europe.

PSA have been unsurprisingly non committal about the future of the generic GM medium/large liftback wagon thing beyond its current model life. I’m assuming they were equally fond of the generic GM small/medium hatchback thing...

The remainder of Holden’s inventory comes mostly from Korea. Familiar econoboxes like the Cruze, Spark, Trax and Aveo (known here as Barina).

Well...GM Korea is currently in the toilet and someone’s finger is hovering over the half-flush button. Sales are tanking and one of their four plants is slated for closure. This shot duck plant makes the Cruze.

The futures of the remaining three are all under review given that GM has gone cap in hand to Korean shareholders and the South Korean Government for handouts. Plus they’ve also sought assurances from local unions.

Profits are down, investment is hard to get, volumes are not great and head office is ambivalent. GM Korea is probably not long for this world.

And if it falls then Holden will fall with it. There’s no other affordable inventory left out there in the GM world for it to remain a meaningful entity. Certainly, the forthcoming US sourced Acadia and the current Thai sourced Colorado and Trailblazer won’t save it based on current sales.

And GM itself will be reduced to merely a mediocre Chinese-US based (yes I got that order correct) conglomerate rather than the diverse world spanning entity it once was...

DISCUSSION (9)

punkgoose17 > SilentButNotReallyDeadly...killed by G/O Media
03/18/2018 at 23:20

Yup. If you are not Chinese or North American GM you are stuffed. I think Opel is probably better off without GM’s incompetance. From all of the GM cars I am familiar with, I am done with them and sticking with Ford domesticly until I start my own car company and save the world.

ranwhenparked > SilentButNotReallyDeadly...killed by G/O Media
03/18/2018 at 23:35

yep, GM is totally retreating from the very concept of empire. Basically, they are no longer interested in managing turnarounds or practicing patience. If there’s a part of the company somewhere that isn’t performing acceptably, it has to be gone yesterday.

In the short term, it certainly boosts profitability, but I do wonder how competing in just two markets within an otherwise global industry is going to work for them long term. There’s also the fact that you can only shrink yourself so small before you become a viable takeover target for someone else.

My bird IS the word > SilentButNotReallyDeadly...killed by G/O Media
03/18/2018 at 23:45

Having exterior brands means that these brands need to be supported with unique vehicles. This adds cost and risk. GM absolutely hates both cost as well as risk. Hence, no investment. Hence, dead brands. GM doesn’t understand customer engagement or enthusiasts. They have been burned too many times by innovating (and often not fully committing to the innovation) to try again.

SilentButNotReallyDeadly...killed by G/O Media > punkgoose17
03/19/2018 at 01:00

Ford was dead clever by not diversifying its brand during its worldwide expansion... everywhere Ford is, you are buying a Ford. Except in the US. Where Lincoln is not exactly thriving...

pip bip - choose Corrour > SilentButNotReallyDeadly...killed by G/O Media
03/19/2018 at 06:04

100% agreed

without South Korea, Holden have about 5-10 years till they disappear, unless they do the unthinkable and get crap out of China?

but then only if China do enough right hand drive.

sadly not enough RHD volume left in the GM world now.

SilentButNotReallyDeadly...killed by G/O Media > pip bip - choose Corrour
03/19/2018 at 06:15

Yeah. As basically the only RHD market in Asia...Holden are toast without South Korea making RHD econoboxes and light SUVs.

The ‘next’ Colorado has no Asian development partner as far as I know so nothing will come from Thailand either...

GM should have shot Holden like Breaker Morant...not let it curl up and die like a homeless pensioner.

CaptDale - is secretly British > SilentButNotReallyDeadly...killed by G/O Media
03/19/2018 at 20:28

You know in a world of mass shooting, hunger, and war, this is the shit that makes me sad. It makes me sad to see my favorite car maker and brands crumble. It makes me sad I won’t be able to rise the ranks of GM to fix these issues. It makes me sad to see them pander instead of innovate of build with heart.

My heart breaks

SilentButNotReallyDeadly...killed by G/O Media > CaptDale - is secretly British
03/19/2018 at 21:26

Funnily enough...l care not at all for the future of Holden or GM. They are mostly irrelevant.

What does shit me is that they run cap in hand to all levels of government and say help us, save us, we are important, we are iconic, we are part of the fabric of this society...and yet they still take their bat and ball and fuck off home. Korea is going through that now.

CaptDale - is secretly British > SilentButNotReallyDeadly...killed by G/O Media
03/20/2018 at 11:12

Yup.... they need to fail or rebuild, because their current structure is all fucked up.

Basically guy in a suit comes up with a plen, implements it, gets promoted and the next guy in his spot doesn’t care about that project and so on so forth. It is super fucked up