General Motors could be looking to sell its Holden subsidiary brand to UK-based importers Inchcape Australia.
Reports are circulating about a potential buy-out of the 163-year-old Holden brand as GM continues to consolidate its business operations, with Subaru Australia and New Zealand importer Inchcape a likely candidate, The Australian Financial Review suggests.
The rumour comes as GM announced back in November it would close five US factories and drop 1400 staff, and exactly 16 months after Holden shut its production in Elizabeth, South Australia in 2017.
GM Holden Limited lost 15.6% of its revenue in 2018, according to IBISWorld.
“Sources” have indicated to the Review, a Fairfax publication, that Inchcape has been conducting “due diligence” with an accounting firm on the GM Holden business case, including its $1.86 billion of revenue in 2017.
An Inchcape spokesperson tells AutoTalk it won’t be drawn on rumours.
“We are always assessing a range of opportunities and initiatives in support of our Ignite strategy and we do not comment on speculation,” the company says.
A Holden spokesperson tells Fairfax, “Under the leadership of Dave Buttner…we are turning around the Holden business, growing sales, re-engaging and re-energizing our distribution network”.
A relationship with Inchcape could prove a beneficial one for the Holden import business given the former’s account with Subaru, and Trivett Automotive with its 23-strong dealer network which sells over 25,000 vehicles a year.
Holden managing director Dave Buttner who was brought in from retiring at Toyota Australia in mid-2018 has already cut imports on Commodore and Equinox SUV stock from Opel’s Russelsheim factory in Germany due to slow sales.
Holden’s December 2018 reported sales were down over 60% compared with December 2017, and its annual reported sales dropped over 32% from 2017 to 2018.
Subaru Australia was only down 16.5% December 2017 to 2018, and recorded just 4.8% down on yearly reported sales.
AutoTalk is seeking comment from GM Holden.
