Holden pauses importation of Commodore and Equinox models to clear excess stock
Holden has requested that factories temporarily cease production on Australian-bound imported models including the Commodore and Equinox.
The Commodore is made by Opel in Germany and the Equinox is made by Chevrolet in Mexico. The decision to temporarily halt production comes as Holden is experiencing slower than expected sales for both models and a surplus of unsold stock in holding yards.
Holden sold 3,927 cars in July – a market share of around 5 per cent – and newly-appointed chief and former Toyota exec Dave Buttner has worked with factories to hold off on export to Australia until some of the unsold stock has been shifted.
The German factory has been instructed not to build Commodores until 2019. Similarly, the Mexicans have been requested to hold off on the Equinox until further notice. Only 3,621 Equinoxes were sold in the first nine months of 2018, similar volume to what many rivals would sell in just six weeks.
It is rumoured that Holden is still trying to move 2017 plated stock, which is far from ideal.
“If you don’t recognise the state of your sales and own up to it quickly you’ve got a pretty huge pipeline coming towards you… We’ve looked at the whole portfolio, looked at what our standard stock should be … it was just a normal sales stock rundown … it’s not rocket science” Buttner told whichcar.com.au.