Holden's exit drives $599 million loss

Holden says the cost of winding up operations had winched up its losses.
Holden says the cost of winding up operations had winched up its losses.

Holden has announced its biggest financial loss of A$553.8 million ($599.5 million) while Ford is A$267 million in the red, its second-worst result on record.

Both car-makers are preparing to close their manufacturing plants in Australia by 2017.

Holden says the cost of winding up those operations had driven up its losses.

The Australian Securities and Investments Commission has published the car-makers' latest financial results online.

Holden issued a statement on its website saying the company was hit with a A$500.4 million one-off impairment charge on property, plant and equipment after announcing that it would stop manufacturing in Australia. The company also recorded a A$122.3 million charge for redundancies.

Holden chief financial officer Jeff Rolfs said the decision to stop domestic manufacturing was the right one.

"Clearly, there are significant costs associated with our decision ... These costs drove the financial loss for Holden in 2013."

-AAP

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