Monday 26th March 2012

State cash keeps Holden in Australia

Federal money helps GM commit to its Australian arm

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General Motors' Holden has announced that it will build two new models in Australia by 2020, securing the Australian brand's future for a good few years.

For a company like GM to persevere with a brand like Holden in such a small market as Australia is quite a commitment. Especially considering the limited global appeal of large, mainstream right-hand drive rear-drive saloons like the Commodore, Holden's staple car.

GM clearly feels there's mileage in Holden, however, as it has pledged $1bn AUD (£660m) of investment to its Aussie division until 2022, a move that follows a $275m AUD (£181m) cash injection from the Australian government.

Exactly what form the two new models will take is unclear, but they're likely to be next generation of the Commodore and a smaller saloon "The two new Australian-made cars will be world-class." Says Holden Chairman Mike Devereux. "They will be underpinned by global architectures from within General Motors and bring new fuel-saving, connectivity and safety technologies to Holden's portfolio."

But why should we care about the future health of an Australian market brand? Because without Holden there would be no VXR8. And don't forget, that means more than just a saloon these days; both the Maloo pick-up we drove recently and the estate version are also available as Vauxhalls. And the UK car market would definitely be the worse off for the absence of those three from price lists.

[325Ti]

didnt realise the estate was now available here

pity the new face lift is so ugly

[TomMc1990]

WHATTTTT!!! GM should have put some of that money towards making the Camaro RHD and releasing them here and there... doughnuts!

EDIT: I am aware they are releasing them here in LHD.

Edited by TomMc1990 on Monday 26th March 14:57

[Motorrad]

Makes sense, the Australians actually have some money unlike the backwater Vauxhall service.

[B10]

Shame that the Camero is not availble in RHD since it is based upon the Holden platform. However it is built in Canada.

[jnoiles]

Hmm. The current commodore cost them a billion in design. And a decade and more onwards they're going to make 2 cars using only a little bit more money. Confused?

[sicmwrx]

In clarrification to the article, it should be mentioned that the VE Commodore and it's siblings were engineered in Left and Right Hand drive to be a world cars, from the word go. The car is exported to many overseas markets for both sides of the road, including more recent exports to the US as police vehicles following the demise of the Ponitac G8 exports.

Hopefully the investmet will mean a realisation of the small/medium RWD architecture underpinning the Torana concept from a few years ago now, which has been sent to othe GM divisions in the US. However it will most likely mean replacement of the current Commodore and further development of the Cruze.

As the Camaro shares it's architecture with the VE, RHD should not be too dificult to achieve.

[tommy vercetti]

That estate looks brilliant

[davemac250]

Les hope that the 'smaller'car is better than the Holden Cruze I had as a hire car.

Pretty much a hatefull creation that was a woefull replacement for the fun filled Toyota Camry I had booked. That is how bad it was.

[loudlashadjuster]

Enjoy 'em while they last, Aussies.

Car companies don't tend to last too long once they start relying on state handouts to survive. One whiff of a more hostile government attitude and GM will pull the rug from underneath domestically-engineered Holden models quicker than you can say 're-badged Insignia'.

[loudlashadjuster]

hora said:

Good point... With the exception of Nissan Sunderland?

Don't get me wrong, I know most (all?) production across the globe is supported by various kinds of tax breaks, incentives and plain old bungs, but this sounds awfully like a bit of brinkmanship, and GM have proven themselves willing to play hardball in this regard in recent years (GM Europe, SAAB).

Next time the dice may fall differently.

[EDLT]

hora said:

loudlashadjuster said:

Enjoy 'em while they last, Aussies.

Car companies don't tend to last too long once they start relying on state handouts to survive. One whiff of a more hostile government attitude and GM will pull the rug from underneath domestically-engineered Holden models quicker than you can say 're-badged Insignia'.

Good point... With the exception of Nissan Sunderland?

And every other car plant in the UK.

They should stick a diesel in the Commodore, I think they'd sell a few over here and in Europe. The Omega used to be popular.

[Panayiotis]

Oddly enough though, Opel is setting up a dealer network in Australia

[soad]

tommy vercetti said:

That estate looks brilliant

Yes, caught my eye too.

[dvs_dave]

sicmwrx said:

In clarrification to the article, it should be mentioned that the VE Commodore and it's siblings were engineered in Left and Right Hand drive to be a world cars, from the word go. The car is exported to many overseas markets for both sides of the road, including more recent exports to the US as police vehicles following the demise of the Ponitac G8 exports.

Hopefully the investmet will mean a realisation of the small/medium RWD architecture underpinning the Torana concept from a few years ago now, which has been sent to othe GM divisions in the US. However it will most likely mean replacement of the current Commodore and further development of the Cruze.

As the Camaro shares it's architecture with the VE, RHD should not be too dificult to achieve.

Sold as the Chevy Caprice with special police mods,
It's actually the Holden Caprice (longer wheelbase of same platform), badged the Chevy Caprice that's being imported with special mods for Police Cruiser use only. They're not available to the general public and there's no plans to either.

[ItsaTVR]

dvs_dave said:

Sold as the Chevy Caprice with special police mods,
It's actually the Holden Caprice (longer wheelbase of same platform), badged the Chevy Caprice that's being imported with special mods for Police Cruiser use only. They're not available to the general public and there's no plans to either.

Not as new perhaps, but the core of many US taxi services seems to be retired-service Crown Vics. So we just have to wait a year or three until they start to hit the auction block!
I wonder, did the Aussies not notice that GM has been lately bringing in record profits?

[Reardy Mister]

sicmwrx said:

In clarrification to the article, it should be mentioned that the VE Commodore and it's siblings were engineered in Left and Right Hand drive to be a world cars, from the word go. The car is exported to many overseas markets for both sides of the road, including more recent exports to the US as police vehicles following the demise of the Ponitac G8 exports.

Hopefully the investmet will mean a realisation of the small/medium RWD architecture underpinning the Torana concept from a few years ago now, which has been sent to othe GM divisions in the US. However it will most likely mean replacement of the current Commodore and further development of the Cruze.

As the Camaro shares it's architecture with the VE, RHD should not be too dificult to achieve.

Correct. But this sort of information would have required some actual research, instead of just sound-bytes based on a press release.

Its a bit like Terry Wogan's old breakfast show sometimes, this place (PH). He didnt need to actually need to write anything either, the audience tuned in mainly to hear the rest of the audience, with Tel as the vehicle for their knowledge and wit.

[sisu]

But then you look at the history of the Commodore. It was an Opel Senator with a local engine and bracing. Thru the 80's - 90's they were getting mullered by the similar Jap spec cars. The crowning moment came in the Bathurst 1000 when they decided to set up their own V8 race series when the GTR won. Which pretty much sums up the Aussie car industry. When things are bad they try to ban foriegners, I mean foriegn cars. When you consider that the height of the stuff they 'exported' is the VX8 to blighty. Thats right all of the Commodores VX8 you see in the UK (outside of NZ but that doesn't count) are the total export of this brand. Even then they were losing money hand over fist...

[Reardy Mister]

sisu said:

But then you look at the history of the Commodore. It was an Opel Senator with a local engine and bracing. Thru the 80's - 90's they were getting mullered by the similar Jap spec cars. The crowning moment came in the Bathurst 1000 when they decided to set up their own V8 race series when the GTR won. Which pretty much sums up the Aussie car industry. When things are bad they try to ban foriegners, I mean foriegn cars. When you consider that the height of the stuff they 'exported' is the VX8 to blighty. Thats right all of the Commodores VX8 you see in the UK (outside of NZ but that doesn't count) are the total export of this brand. Even then they were losing money hand over fist...

Does Chev not pay Holden for all the thousands of Commodore derivatives around the world then (that is actual Commodores wearing Chev badges)? Or Pontiac? Or Isuzu? Are you even reading the thread? Banning grey import models from the domestic race series in the early 90s is not really relevant here, is it? If you think they have the formula wrong, perhaps consider why various japanese brands are considering entering the series next year with new platforms to suit? Or that rear engined V8 Toyota sedans already exist elsewhere, but in different markets better able to support them.

The problem in Australia is volumes. There are not enough people to justify making a bunch of niche models the way Toyota does for all its asian or US markets. Holden's position in Australia gets more precarious every year as their market becomes more accepting of a world car platform. Once you dont need Aussie specific cars, you dont need Aussie specific offices or factories. But consider that the Federal Governemt will tax to death anything built O/S and that whoever out of Ford or Holden blinks first and pulls out, the other will pounce on the lack of a locally built car and I think the situation isnt as dire as it sounds.

[sicmwrx]

sisu said:

But then you look at the history of the Commodore. It was an Opel Senator with a local engine and bracing. Thru the 80's - 90's they were getting mullered by the similar Jap spec cars. The crowning moment came in the Bathurst 1000 when they decided to set up their own V8 race series when the GTR won. Which pretty much sums up the Aussie car industry. When things are bad they try to ban foriegners, I mean foriegn cars. When you consider that the height of the stuff they 'exported' is the VX8 to blighty. Thats right all of the Commodores VX8 you see in the UK (outside of NZ but that doesn't count) are the total export of this brand. Even then they were losing money hand over fist...

I am sorry to say sisu, but the VE/WM Commodore and Statesman derivatives are exported to many more markets than just UK and NZ. have a look here:http://www.gm.com/toolbar/allGMSites.html, and then at Africa, Asia/midle East. There have also been unofficial exports to Germany, where the WM is sold under another name.
In reference to Bathurst its not only the GTR, but also the Sierra Cosworth Turbo. Considering that the other series that have rules restricting you to certain types of cars eg 2L touring cars or NASCAR or any other motorsport event, then a broader understanding of the world is wise.
In the reverse situation exporting the Type R Civic to Australia from Blighty was a challenging proposition due to the previous exchange rate, so this all swings and roundabouts currencies go up and down, some times you lose sometimes you gain.
And by the way, the Australian car industry has in the past and again in recent time built other cars than V8 powered Sedans, Utes and Wagons. Try Camry, Aurion, Corolla, Cruze, Pulsar, Apolo, 323, Teritory, Falcon, to name a few.

Edited by sicmwrx on Tuesday 10th April 15:57