Hazydog wrote:Holdens have been a loyal sponsor over the years although I think the value to them would be more about the morale boost the sponsorship provides for their local employees rather than any exposure they receive. I would have thought that with employees making sacrifices during tough economic times, that the morale boost factor would become even more valuable.
Putting Holdens to one side for a moment, it makes me laugh how some of these huge corporations have to make severe cut backs to ensure their multi million & even billion dollar profits continue. They seem to have every one feeling sorry for them that the profits may be down by a miniscule percentage.
Anyway - now I've vented, Holdens support will be long appreciated even when it does eventually finish.
I don't have any actual figures for their profit, but in any case you have to look at it as a percentage of the capital invested.
If a billion profit is 4% of capital it is easier, and more secure, to put the money in an investment account with a bank at the 4.2% I was recently quoted, which is what shareholders will do.
Then Holden fold, and every worker there is without a job...
The reality is that any company has to give shareholders a return that is worth keeping their money in the company, if the company is to keep trading and keep employing people.