Holden is 'not for sale'

Holden is not for sale.

That’s the message from a dogmatic and sometimes testy Holden chairman and managing director Dave Buttner in his first media interview since speculation surfaced of an approach by UK-based automotive distributor and retailer Inchcape to Holden’s parent General Motors to take control of its Australian operations.

Buttner, who took over at Holden last August after a long stint at Toyota Australia and a short retirement, is renowned for sticking to the script and refusing to be knocked off the ‘company line’ during interviews.

And that’s clearly what his policy was on a day that was meant to be focussed on Holden’s SUV-oriented rebuild plans in 2019.

“We are about getting on with the job here,” Buttner said. “There is always rumour and innuendo around and that story grew from one article in the Australian Financial Review and a lot of people speculated and started to imagine what may or may not be.

“But there is certainly nothing going on in that space.

“I have been brought in all very honestly and very openly to work with the great team at Holden, work with our dealers, work with GM to regrow the brand for sustainable growth into the future.

“We are not for sale. I didn’t come to sell the company down. I came out of retirement to work with people to rebuild this fantastic company.”

On February 7 the AFR’s Street Talk column reported UK-listed Inchcape – which handles distribution of Subaru and PSA models in Australia as a well as dealer investments – was checking whether GM was interested in selling off Holden as part of its larger global restructure.

GM shut down its Australian manufacturing facilities in late 2017 and 2018 was the Holden’s worst sales performance in decades, slipping to sixth overall.

“Sources suggested Inchcape has had one of the big four accounting firms helping with due diligence, and looking at various scenarios for GM's Holden and its various imported vehicles,” the AFR noted.

We delved into some of the complex implications of such a deal here.

The AFR also quoted a GM spokesman: "Under the leadership of [GM Holden CEO] Dave Buttner, who was appointed in August last year, we are turning around the Holden business, growing sales, re-engaging and re-energizing our distribution network and launching exciting vehicles like the all-new Acadia. We are fully focused on supporting Dave in building a strong Holden for the future, as it remains an important part of GM's business."

Inchcape initially declined to comment but later offered: “We are always assessing a range of opportunities and initiatives in support of our Ignite strategy and we do not comment on speculation.”

Neither statement constituted a definitive denial by any means, prompting plenty of speculation along the lines of ‘where there’s smoke there’s fire’.

But Buttner was doing his best to douse the story this week, saying he was not aware of any discussions at Holden or GM-level with Inchcape.

“There’s been no discussions with me with Inchcape … to the best of my knowledge there’s been no discussions that have transpired [between Inchcape and GM] and I keep very close to GM. I speak to them on a regular basis and I have got their absolutely outstanding support.”

Pressed further Buttner pretty much shut down on the subject.

“There is no point me adding further to the scuttlebutt. I just want to get on with the job and those sorts of distractions don’t do anything to help the confidence inside Holden, the confidence of the dealers and so much in this industry is about being confident,” he said.

At one stage Buttner refused to directly respond to a question about who he had checked with at GM about the Inchcape rumour, before offering: “Who I contact with and whether I contact them is frankly my business.”

A sub-text of this discussion has been the future of the Opel-sourced Commodore (nee Insignia) and Astra models sold in Australia as Holdens.

It is believed the supposed Inchcape enquiry to GM about Holden grew out of an investigation into re-introducing Opel to Australia.

Opel-Vauxhall was a GM division until 2017 when it was sold to PSA. Carsales.com.au has been told several times by sources close to Holden and GM that Holden was offered to PSA as part of the package, but was declined.

Both GM and PSA have since denied that happened.

Buttner’s Holden predecessor Mark Bernhard said supply of Commodore was guaranteed out to 2024, but Buttner refused to be definitive, only confirming both models would still be in Holden dealerships into 2020.

A mild Commodore update is due this year and some form of range rationalisation is due this year.

Buttner also said he did not know if Holden had the right to veto the sale of the Commodore and Astra in Australia as Opels while they were in its showrooms.

“There is a relationship there [Opel] with GM and I am not privy to all the contractual details, but all I know is we have sighting on product into the future,” said Buttner.

“Passenger cars still represent 35 per cent of the market and they are probably our two best nameplates in terms of Commodore and Astra, so while there is an opportunity to play in that marketplace we will play in that marketplace.”

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