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Holden To Build Small Car In 2010

Motoring Channel Staff - 22/December/2008

Holden To Build Small Car in 2010
Holden To Build Small Car in 2010

Holden To Build Small Car in 2010
The Chevrolet Cruze sedan sits on the same
Delta platform as Holden's upcoming small car

Australian Car Makers Adapt

Holden's announcement of a new small car is huge news, and judging by the single sketch we've obtained it'll be a sporty little number. This move to small car manufacturing represents another step in the Australian car industry's changing outlook. For the last few years sales of large cars have been sliding lower but the response to this slump is promising.

Both Ford and Holden will begin building small 4-cylinder cars in Australia in the new decade, which shows a desire to keep step with changes in society.

Large cars such as the Falcon and Commodore are becoming less popular - despite an increase in quality and sophistication - as fluctuating fuel prices and environmental concerns affect buying patterns. In the current economic climate it's not simple (or cheap) to retool entire facilities to produce completely different cars, so to see this happen across the board is a testament to the solid partnerships betweenbusiness and government.

As all three Australian manufacturers start building 4-cylinder cars - Holden, Ford and Toyota - it signals that the local car making industry is capable of adapting to meet the changes of a rapidly evolving world.

- Feann Torr, Editor

Holden To Build Small Car in 2010
Holden's upcoming 4-cylinder small car will
be part of the company's new EcoLine strategy

Ford Focus
Holden's new 4-cylinder small car will rival
Ford's Focus which will also be built locally

Adelaide, Australia – At a press conference in South Australia attended by Holden employees and the Prime Minister, Holden confirmed that it will build a small car in Australia in late 2010.

This new 4-cylinder vehicle has the potential to secure GM Holden's manufacturing future in Australia and is expected to generate up to 1000 new jobs, a prediction that wasn't lost on PM Kevin Rudd.

"This new Holden small car is about jobs, the environment and the family budget," stated Prime Minister Rudd.

The new car is expected be based on the Chevrolet Cruze, which is about the size of the current Holden Astra or Holden Viva.

Holden's second new car manufacturing line will begin operating in the third quarter of 2010 at its Elizabeth manufacturing facility in South Australia.

Meanwhile the design and engineering work will take place at the company's headquarters in Port Melbourne, Victoria.

The new model brings Holden in line with rivals Ford and Toyota, who both have plans to build 4-cylinder cars in Australia in the new decade: the Ford Focus in 2011 and the Toyota Camry Hybrid in 2010 respectively.

No name has been assigned to Holden's new 4-cylinder model, which will follow in the footsteps of the Torana, Gemini and Vectra 4-cylinder models which have all been built by the 60-year-old company in the past.

Despite GM Holden's American parent company, General Motors, feeling the damaging effects of the global financial crisis, Holden managed to secure almost $200 million in funding from the Federal and State Governments.

The total cost of the new vehicle is estimated to be around $400 million. 

The Federal Government will provide $149 million, which will be part of the Government's $6 billion car plan, the South Australian State Government will add another $30 million and GM Holden will invest an expected $200 million.

GM Holden's chairman and managing director, Mark Reuss, was praised by the Australian Prime Minister who said that Mr Reuss "...brought a breath of fresh air..." in the way GM Holden operates.

Mr Reuss said that the announcement of the new small car provided opportunity to take a leading role in developing alternative fuel and fuel saving technologies in Australia for Australians.

"Together with Government, we are extending the scope and consumer appeal of our local manufacturing efforts," Mr Reuss said.

"We recognise the needs and desires of motorists are evolving with growing concern around environmental factors and shifting consumer sentiment.

"Such evolution calls for an innovative approach to complement our current offering.

"Just as our leading Commodore range will continue to undergo technological development, this new vehicle will cater for growing demand for smaller cars focussed on economy.

"We are planning for the future to produce a wider range of cars in Australia to cater for a variety of driving needs," added Mr Reuss.

The potential for exporting the new model has been mooted by Holden, which could sell the car in other right-hand-drive markets in Asia, and the company released a statement saying "flexible manufacturing infrastructure will be introduced to the Elizabeth plant to make it capable of producing a series of GM global vehicles in years to come."

Could Holden have plans to build a third new model?

As sales of locally made large cars like the Holden Commodore and Ford Falcon edge downhill, it will give rise to new models, first of which will be small cars such as the Ford Focus and Holden's new 4-cylinder model. 

Home-grown SUVs, mid-sized cars and even electric vehicles could be next.

Getting back to GM Holden's newly announced 4-cylinder small car, and power could come from a range of different sources, says the company.

Direct injected petrol and diesel variants of the vehicle will be produced, and Holden has gone on record stating that a number of alternative fuels are being considered for the new front-wheel drive 4-cylinder small car.

This includes E85 ethanol, LPG, and Compressed Natural Gas (CNG), and even start-stop hybrid technology could be developed to reduce fuel consumption on the new model as part of Holden's emerging EcoLine brand.

"The Rudd Government's Green Car Innovation Fund has provided opportunity to turn our plans into reality," Mr Reuss said.

"This announcement complements the vision we share with the Government of reducing Australia's dependence on foreign oil and making motoring better for the environment.

"It demonstrates commitment to an Australian automotive industry which extends beyond manufacturing at GM Holden to thousands of suppliers and dealers across the country.

"That demonstration was clearly seen by our parent company in its decision to support this program," added Mr Reuss, GM Holden's managing director.

General Motor's Group Vice President and Asia Pacific President, Nick Reilly, today added his support to the program as proof of GM's capacity to innovate across the region.

"This announcement recognises the ability of GM, GM Holden and the Australian automotive industry to see the future and move in the right direction," Mr Reilly said.

Holden Small 4-cylinder Car

At this stage not a great deal is known about Holden's new project, except for the fact that it'll be based on General Motors' global Delta small car architecture and is likely to be a sedan at first, followed by a hatch.

We know it will be a 4-cylinder vehicle with a front-wheel drive setup, and the Delta platform will underpin the next generation Chevrolet Cruze and Astra models, which suggests that it will be about the size of its rival, the Ford Focus.

As Holden revealed, the local design and engineering work on the Australian vehicle will take place at GM Holden's Port Melbourne headquarters in Victoria.

The company has released a sketch of the new vehicle, but little else is known.

HSV is also likely to have a fiddle with the new model, being an Australia-made vehicle, and there have been unsubstantiated rumours that the Gemini nameplate could be resurrected.

Related Links:
Holden Ethanol E85 Commodore (2010)
Holden Sportwagon SS V (Road Test)
Holden AFM V8 + EcoLine (2009)
Holden Captiva Diesel (Road Test)
Holden Astra Diesel (Road Test)
Holden Commodore Diesel (2009)
Holden Calais V Sportwagon (Road Test)
- Holden Sportwagon (Road Test)
Holden Commodore Hybrid (2010)
Holden Coupe 60 Concept (2008)
Holden VE Ute: SS vs SV6 (Road Test)
Holden VE Ute (First Drive)
Holden Coupe 60 Concept (2008)
Holden Commodore Diesel (2009)

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