Holden steady
Plan is to stay on course and build up the small operating profit from last yearNewly installed Holden MD, Mike Devereux, is cautiously optimistic that the local GM outpost is headed for a win this financial year.
"We've had a very tough year last year -- $223 million in one-off charges actually, and a small after-tax profit... so on an operating basis, small profit last year," Devereux informed local journalists earlier today.
"We had a strong start to 2010. As Mark Bernhard [Holden's Chief Financial Officer] said on the earnings call, we're not claiming victory, but I expect this year to be a very good year for Holden -- and when we post our results next year, hopefully they will not need any explaining."
Along with expectations the company will post a profit, Devereux is anticipating further sales growth and an improving production scenario. The British-born Canadian has moved into the top position at Holden at a good time. In sales, Holden posted 20 per cent growth in January, 24 per cent growth in February and 28 per cent growth last month.
Yet the company is holding off reintroducing a second shift at the Elizabeth plant.
"We had an unprecedentedly horrific year as an industry -- not just Australia but the entire [global] industry last year. When we're in a position to increase the volume and [change] shift patterns, we're going to do that, but we're going to be talking to the union before anybody else actually, so we're not in a position to do that today."
Plans are on track for the Cruze small car (pictured) to go into production locally during the first quarter of next year. The car will be built in Adelaide as both a hatch and a sedan. This remains true to a strategy devised by predecessors in the role of MD at Holden, Mark Reuss and Alan Batey. Devereux sees no reason to modify that strategy.
"The plans that were set in place by Mark Reuss and Alan Batey are rock-solid plans and I don't see [myself] coming in here and changing any plans," he said. "My management style is to enable culture and let that drive what people can accomplish.
"I don't see any big, strategic differences... Alan and I have known each other for a long time. We had a very good, solid handover period -- and Alan's plan is my plan."
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi
Tags
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
