GM Holden Says GM Bankruptcy Positive And Local Jobs Safe
02 Juni 2009 - 2:22AM
Dow Jones News
GM Holden Chief Executive Mark Reuss said Tuesday the bankruptcy
of parent company General Motors Corp. (GM) is a positive
opportunity to restructure and the Australian business is "safe",
with no job losses planned for now.
Reuss said Holden is well placed as one of GM's three vital
subsidiaries in the Asia Pacific region and that the bankruptcy
will not affect the Australian unit's access to capital.
"We are a viable, sustainable business in the long term," he
told reporters
"We are cashflow positive, we are liquid (and) on the verge of
turning a profit here this last month even in a down business."
Reuss said Holden has moved quickly to respond to the downturn,
cutting shifts and freezing pay, and is well placed with the best
selling car in Australia in the Commodore and new small car the
Cruze on the way.
"With all those things in place, with the right operating and
structural cost, we can be very profitable here," he said.
Holden has no plans to cut jobs at this stage and the company
does not have debts owing to its parent, Reuss said.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com