Holden Sales Have Dropped, But Profit Margins Are Increasing

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Holden is enduring through a significant sales depression at present, however it’s not all bad news for Australian subsidiary of General Motors. A report shows that top-spec models of the Holden Colorado are increasing profit margins to new heights.

Stefan Jacoby, executive vice president and president of General Motors International, stated it’s not about sales numbers all the time and commented on the Colorado.

“I would not say we are not increasing Colorado volume. It requires more evidence and existence on the road, it cannot ramp up from one night to the other. Exactly what is a true evidence of us doing the right thing to start with, is a net sales increase every week. So we are selling at a much greater price point, maybe that’s more important than selling every automobile we can get,” he specified.

The high margins are likewise stemming from Holden VF Commodore SS-Vs, which are said to be in short supply before production ends later on this year.

“We are selling much more LTZs than ever before, a lot more SS-Vs than ever before. This is far more successful for us than just increasing volume.”

Regardless of the high margins, Holden will have a little a headache when the last, locally-built Commodore rolls off the assembly line. The brand will have to capture higher volumes in additional sectors to make up for lost, full-size Commodore sales.

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