Sunday, 2 June 2013

Holden Engine importers in Sydney making profit due to a strong currency

A strong Australian Dollar has helped Holden to earn more profits. This has in return helped in reducing the margin of losses Holden has been making in present times. Australian made vehicles are not as popular as Japanese imports, so it has been suffering this fate. However, the economy of Australia is growing faster than others. Holden is also maintaining a zero-debt record as of now.

Holden’s balance sheet is very healthy as of now. In 2012, Holden made an approximate profit of 90 Million AUD. The Australian Government invested a similar amount in the local automobile company. This issue got many a tongues wagging, and as of now simmering gently as a mere speculation.  But what is creating the real troube is the fact that the developing economy has resulted in sky rocketing of labour wages.

Auto companies based in Sydney which relies on Jap engine imports and importers are the ones who have a better chance of earning a higher profit than the local car maker. Commodore and Cruze sales are just not picking up while Nissan and Mitsubishi are raising the bar constantly. Even Ford Co. is pulling out of Australia. But what’s shocking is that motor imports are running healthily with no chances to slow down in the future. Industry insiders have revealed that the Australian car makers has assigned a top-secret assignment to cost analysts as to what may be the reason behind the constant slipping of the Holden.

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