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It's probably about time that Oz forums got a dedicated business thread so all of the business related topics can be merged into one!

I'll start with an article:)

Holden posts back-to-back losses
Friday Jun 15 18:26 AEST
Car maker GM Holden has posted back-to-back losses, the latest a $146.56 million slide into the red in 2006.

The after tax loss last year followed the $144.6 million the company lost in 2005.

But Holden chairman and managing director Denny Mooney insists the company remains upbeat about its future, both in the domestic and export markets.

"Obviously, it was not a great result ... but we're confident about the future," Mr Mooney said.




"We still feel confident in where we are and where we're going."

Holden directors said the results were impacted by one-off costs and accounting adjustments.

The company paid out $20 million in termination payments following staff cuts both at its Elizabeth assembly facility in Adelaide and the Melbourne engine plant.

Tooling revaluation costs hit the bottom line to the tune of $69.7 million while there were also costs associated with the launch of the new VE Commodore and WM Statesman and Caprice models.

Domestic sales were down by 16.2 per cent last year to 146,511 vehicles pushing total revenue down 7.8 per cent to $6.149 billion.

Holden said vehicle exports fell from the record levels of 2005 to 46,074 in 2006.

But it said engine exports rose 6.8 per cent to 212,266, taking total export revenue to $1.852 billion.

Mr Mooney said while senior executives in Holden's General Motors parent company in Detroit would have preferred a better result in 2006, they understood the factors behind the performance and were equally buoyant about the company's plans for the future.

The Holden boss said the biggest challenge going forward was the continued strength of the Australian dollar and the relative weakness of the Japanese yen.

That made it both difficult for local car producers to sell competitively against Japanese imports in Australia and also impacted on the competitiveness of exports.

"It's very difficult as a local manufacturer to sell in our market and command a price," Mr Mooney said.

"The strong dollar has allowed the importers to really take prices down which has put a squeeze on our margins.

"Plus the strong dollar makes it more difficult to export."

But Mr Mooney said he remained "bullish" on the company's export business after setting up the local manufacturing operations to run lean and seize opportunities to sell in niche markets, particularly through Asia.

Holden also was looking forward to the start early next year of exports to the US of the latest VE Commodore which would be badged there as the Pontiac G8.

Mr Mooney, who leaves Holden at the end of July to take up a senior position with GM in the US, admitted it was personally disappointing to sign off on two losses.

"On the other hand I know where the business is right now, I know what's coming down the road in the next couple of years," he said.

"I feel pretty confident and I feel pretty good about where we're going."

http://news.ninemsn.com.au/article.aspx?id=75366
 

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^ I'm actually happy with the Coles process.
The board is FINALLY trying to do what is right by the shareholders - after 5-10 years of inaction.

For too many years Coles has fucked up by being unable to compete against Woolworths! By finally selling the company to people who can actually run it (Westfarmers + Macquarie or TPG + Woolworths) they are doing it in a way that maximises shareholder value.

John Fletcher and that Singaporean guy who ran Brambles will go down in Australian history as the worst CEOs ever.

I still laugh when I think that per square meter Woolworths earns 35% more profit than Coles - WTF
 

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Look at Holden and look at their products. Compare these to cheaper cars on the market that have more standard features like power everything, digital climate control, better safety features and you can see why their sales are sliding. The brand new Commodore recieved the same safety rating as the five year old Falcon. It is time for Australian manufacturers lifted their game and started to produce products that rival the best.

I hope Westfarmers gives the nod for the takeover of Coles.

I am dissapointed with Multiplex being sold to Canadians. I mentioned it in teh other thread. I want to keep business in Australia. Australian owned and operated. I do not mind foreign leadership as long as it works (are you listening Sol?).
 

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^ I'm actually happy with the Coles process.
The board is FINALLY trying to do what is right by the shareholders - after 5-10 years of inaction.

For too many years Coles has fucked up by being unable to compete against Woolworths! By finally selling the company to people who can actually run it (Westfarmers + Macquarie or TPG + Woolworths) they are doing it in a way that maximises shareholder value.

John Fletcher and that Singaporean guy who ran Brambles will go down in Australian history as the worst CEOs ever.

I still laugh when I think that per square meter Woolworths earns 35% more profit than Coles - WTF
Couldn't agree more. The point I was making is that it is dragging on and all sorts of things keep making the news, from Tesco pulling out, to KKR pulling out, to TPG getting the banks on board, to the ACCC saying it may look into it. This has been going on for months and months. Hence why I used the word 'saga'.

Frankly who I couldn't really care less who ends up with Coles. I just hope Wesfarmers (if it's them that wins it) can do a better job than what the existing management have done. I'm not overly confident though considering that running a chain of market destroying giant hardware stores is somewhat different to running a supermarket and general merchandise business in a highly competitive environment. That, and the fact that Coles business is larger than the retailing business of Wesfarmers by several orders of magnitude. But we'll see.
 

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Look at Holden and look at their products. Compare these to cheaper cars on the market that have more standard features like power everything, digital climate control, better safety features and you can see why their sales are sliding. The brand new Commodore recieved the same safety rating as the five year old Falcon. It is time for Australian manufacturers lifted their game and started to produce products that rival the best.

I hope Westfarmers gives the nod for the takeover of Coles.

I am dissapointed with Multiplex being sold to Canadians. I mentioned it in teh other thread. I want to keep business in Australia. Australian owned and operated. I do not mind foreign leadership as long as it works (are you listening Sol?).
The safety rating system is flawed. The reason stated for not recieving 5 star rating was lack of standard side-impact airbargs which acts as an immediate disqualification from 5 stars, which is somewhat stupid, as it overshadows the huge improvement holden has made to both active / passive safety. The extensive use of extremely high-strength steel (primarily in the B pillars) and clever use of mutiple grades of steel in production of the chasis, ensures that the body is not only far more effective in protecting occupants (especially in side impacts) but that when the car does crash the way that the car crumples is much more effectively controlled (also when compared to local and a lot of imported rivals). Also the addition of traction control to all models can't be overlooked, even though preventative safety features are not considered in Australian testing, and the fitting of above standard tyres even on the base model all make a huge difference.
 

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I understand the Holden has made a big improvement on the previous model but it still does not compare with foreign models.
 

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Look at Holden and look at their products. Compare these to cheaper cars on the market that have more standard features like power everything, digital climate control, better safety features and you can see why their sales are sliding. The brand new Commodore recieved the same safety rating as the five year old Falcon. It is time for Australian manufacturers lifted their game and started to produce products that rival the best.

I hope Westfarmers gives the nod for the takeover of Coles.

I am dissapointed with Multiplex being sold to Canadians. I mentioned it in teh other thread. I want to keep business in Australia. Australian owned and operated. I do not mind foreign leadership as long as it works (are you listening Sol?).
The Falcon was tested on 2002 tests, the current Tests are alot harder to pass. Im a Ford Fan BTW. Holden imports Korean Cars, there new Epica is a cheap peice of poo. Amazing that Holden outsell Fords European cars
 

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I understand the Holden has made a big improvement on the previous model but it still does not compare with foreign models.
They aren't really that comparable though, especially to those in Europe it will always be a cost v's equipment battle, and the amount of equipment on board a euro car doesn't justify the price differences IMO.. American cars are junk, which is the only thing holding holden back is the american influences (which the VE is supposed to revitalise the american car standards or some BS). Cars coming out of Korea aren't so bad anymore (we really don't see half or quarter even, the models they produce).

Anyways, if predictions are correct, the VE will outsell in the US by a large number which Holden are banking on, and the upspec models are going great in the UAE, now they're just getting them into the UK market which will be the real test. Alot of manufacturers already use the AlloyTec V6 as a base (more export as this grows). And I believe the Commodore Deisel engines aren't far off either which will help push into the UK market - don't know if this is a locally produced engine though....
 

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Watch my Chops
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Brissy Lad, Holdens model range is shocking. While the quality of Japanese Cars has boomed, Korea is taking longer. Europe is along way ahead of most other nations.

GM Holden and Ford Aus have great skills and i think we will see them exported alot over the next 20 years.
 
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