Holden To Build Small Car In 2010
Motoring Channel Staff - 22/December/2008
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 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 AdaptHolden'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's upcoming 4-cylinder small car will be part of the company's new EcoLine strategy
 Holden's new 4-cylinder small car will rival Ford's Focus which will also be built locally
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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 CarAt
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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