Holden Stands to Lose $1 Billion by Pontiac Closure
Though its widely known that the Pontiac G8 is derived from its Australian subsidiary Holden’s VE Commodore and imported from Australia, its not such common knowledge that the G8 was supposed to account for almost half of Holden’s annual exports.
GM’s deal with Holden estimated that U.S. consumers would spring for about 30,000 G8 sedans each year, worth about $1 billion annually for Holden. But now that GM has announced that it will phase out Pontiac by 2010, Holden is out at least $1 billion annually.
Holden spent $77 million retooling its Elizabeth, South Australia plant to make the G8, and said the vehicle would save the future of the plant. Holden had already taken a hit earlier this year when GM cancelled plans to bring a G8-based sport truck to the U.S.