GM-Holden’s bottom line has been profoundly hampered following the loss of Pontiac exports to North America. The car manufacturer yesterday announced that the axing of the Pontiac program was a significant cause behind its $210.6 million net loss for 2009.

The overall loss was also due to other charges, however, the cancelled program was the main drag on the result. The result was significantly worse than GM-Holden’s previous loss in 2008, which amounted to $70.2 million.

According to mark Bernhard, the carmaker’s chief financial officer, the result was “disappointing” but was undoubtedly a “by-product of one of the most severe economic downturns”, which he purports had a substantial impact on both domestic and export sales.

The high-volume exports of the Pontiac G8 were halted in April 2009. Bernhard also acknowledged much of the loss was the result of the company’s decision to discontinue these exports.

Combined with the economic downturn, the discontinuance of these exports has undeniably impeded GM-Holden’s manufacturing levels, with 2009 seeing the production of 67,000 vehicles, compared to the 119,000 built in 2008. Furthermore, only 88,000 engines were exported in 2009, a value profoundly less than that of 2008, which saw 136,000 engine exports.

However, Mr Bernhard also forecasted that the improved health of the economy should see the improvement of Holden’s finances. “At this time we started to witness the benefits of some of the more difficult restructuring decisions made during the year to ensure we were operating on a leaner, more efficient base,” he said.

“This contributed to the company’s positive operating cash-flow of $289.8 million.”
With regard to local production of the Cruze in Adelaide, Mr Bernhard was sure Holden would return to profit soon. “While we’ve had a good start to the year, I’m not in a position to declare victory just yet,” he said.