The paper ' Corporate Ventures' is a wonderful example of a Management Case Study. Holden, officially known as General Motors Holden Limited, is an automaker based in Australasia. Its headquarter is in Port Melbourne in Victoria. The General Motors subsidiary started in 1856 as a manufacturer of saddles in South Australia (The Dog & Lemon Guide 2016). The company ventured into the automotive field in 1908 through which it became a subsidiary of General Motors in 1931 which is a United States company. The subsidiary saw the company's name adjusted to be called General Motors-Holden's Limited.
In 1998, its name was changed to be Holden Limited and in 2005, it adopted its present name GM Holden Limited. As a General Motor's subsidiary, Holden deals with the operation of vehicles in Australasia in which they shared with GM Daewoo in Korea from 2002 to 2009. Holden has brought into the local market a variety of vehicles tailor-made for the population. In addition, it has also supplemented it locally made a vehicle with imported General Motors models to offer a variety for the public. Through shared arrangements, Holden has been able to offer its customers models such as Vauxhall Motors, Toyota, Suzuki, Opel, Nissan, Isuzu, and Chevrolet.
The line-up of vehicles models that Holden had as of 2013 included those from GM Thailand, GM Korea, GM in the United States, and its self-developed Ute, Caprice, and Commodore. In addition, Holden distributed Opel, the European brand, in Australia as of 2012 up to its demise in Australia in 2013. All the Holden vehicles that are built in Australia are developed in Elizabeth, South Australia. However, the engines for the vehicles are manufactured at the Fishermans Bend, which is located in Port Melbourne.
Holden's exportation has been fluctuating since the 1950s with its sales declining constantly. As a result, it has been expanding to reach international markets with the aim of increasing profitability. On 11 December 2013, the company announced that it will stop producing engines and vehicles come December 2017. However, the company still aims to continue selling cars upon importation. It also aims to retain its design center. Current Situation According to the Dog and Lemon Guide (2016), Holden manufactures have only two vehicles in Australia which are the Cruze and Commodore.
The rest of the models that the company sells products of oversea businesses that General Motors own. The imported models usually get the Holden badges upon leaving the factories. The company has experienced high losses for most of the last ten days. In 2014, the company experienced a loss of 553.8 million Australian dollars while in 2015 the loss was approximately 255.2 million. The chances of the company surviving the losses are uncertain. However, General Motors, owner of Holder, is currently profitable, more so, in the United States.
It has experienced losses in Europe and South America though. General Motors in China has also been experiencing good profit margins even though vulnerable to the downturn in the economy. As per Holden's plan, it aims to continue its existence in Australasia due to the consumer's demand. But after 2017, the products that it will be selling will be internal brands even though they will have Holden badges. The losses have seen the number of staff in the company reducing significantly, and further offload is expected after 2017.
The losses have been due to the growth in strength of the Australian dollar that has predicted the fall of the government grants.
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