Holden Sticks To Its Guns Dispite US Experts Bleak Predictions For The Large Car

[JoeT]

Holden Sticks To Its Guns

David Hassall
24 April 2007
www.goauto.com.au

Holden has rejected suggestions from a visiting international motor industry expert that Australian car-makers should move away from large cars and instead build small or hybrid cars.

Holden director of engineering Tony Hyde told GoAuto that it was not economically feasible to build small cars for Australia.

Mr Hyde said that Holden was very happy with its large-car program and would continue trying to expand its volumes through exports.

He was responding to comments made by the president of the Detroit-based Center for Automotive Research, Jay Baron, who was a keynote speaker at last week’s ‘Change By Design’ conference – an annual government-backed event run this year by the Society of Automotive Engineers (Australasia)

Mr Baron told local industry representatives at the conference that Australian car-makers needed to change direction because large rear-wheel drive cars were in decline.

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No business plan? Holden has clearly considered building
a quality mid-size car like the Torana concept car

[jbernie]

Holden is correct in its view, the Australian market is quite unique. As much as Holden would love to put a view Torana concept variants on the market they have such a tight margin and so much competition you would need to build a world beater not just market leader first up to really get the sales going and even then profit would only happen with large exports which aren't always possible.

As to the rwd market, demand in the city might not be what it used to be, though it still is healthy but go out into the country and a large rwd is not a bad purchase, especially when priced against smaller imports. When the nearest shop is 50 miles away two trips is not on the cards. When i was visiting my grandma's old farm, the trip from the paved road to the house was a few miles in itself, let alone the 30 miles drive from there into town to do anything.

With GM getting its act together re hybrid technology, I can see Holden continually doing well with the Commodore in dualmode hybrid and diesel variants, the other tech such as fuel cell like hydrogen would probably be a city only vehicle due to way too many issues with infrastructure. Dual mode & diesel will sell quite well, full size car with small/mid size economy.

[give_it_all_]

I think they should build small cars too. It's sorta like how GMNA is scrambling to build the small cars now because they refused to before...

[telo]

That's a pretty car. In white.

[stevecmh]

glad to see this.. i hope they are going to come over here by the boat load

[EldoFan]

Originally Posted by stevecmh

glad to see this.. i hope they are going to come over here by the boat load

I second that, big time!!

[JohnPetrosky2k]

Such a sexy beast.... whats the engine in that thing anyway?

[mcool]

This attack on large passenger cars is kind of silly to me. American tastes aren't going to abandon vehicles the size of VE any time soon. As well, it's an aspirational size, so developing markets will see these as a high point of car ownership.

I would like to see Alpha green lit and fast tracked, though, as the need for that type of product is the last gaping whole in GM's portfolio that I see short term. Cadillac, Holden, Pontiac, and maybe Opel could all leverage a midsize RWD product.

[JoeT]

A 280kW 3.6 litre twin turbo Alloytec Global HFV6 engine

[HoosierRon]

I wonder if Mr. Baron is telling Lexus and Mercedes and BMW to stop building large, RWD cars.

[Havasavana]

Originally Posted by give_it_all_

I think they should build small cars too. It's sorta like how GMNA is scrambling to build the small cars now because they refused to before...

Exactly. It's not that they can't build all the large stuff they want, but just that they won't sell at profit. Toyota/Honda march on.

[uujjj]

the problem isn't that holdens are RWD; it's that they've grown much bigger and heavier than the market's sweet spot. they should build mid-size RWD cars.

[elgreen]

Just please send them here. Quickly. They may be Buick and Pontiac's last gasp before the FWD monster claims them, too.

[hunchman]

Originally Posted by uujjj

the problem isn't that holdens are RWD; it's that they've grown much bigger and heavier than the market's sweet spot. they should build mid-size RWD cars.

sure a big one, a little one,a medium one..........GM should have all the sizes in a rwd ........and hurry I want to get rid of my puddle jumper for a rwd

[OzStrat]

As much as I love thumping big V8's, especially when found in Holden VE's, there is a rather large problem looming very close on the horizon. The coming US driving season should reveal just how close this problem is. It is called peak oil. Peak oil is the point in time when maximum world oil production is achieved. Thereafter begins a permanent & irreversable decline in production.
We won't run out of oil because there is still half left, it just won't come out of the ground as fast as we would like.
This means there will be an ever increasing shortfall in supply. $300+ for a barrel of oil is almost upon us and in a short space of time cars will be redundant. Forget hybrids because the extra energy required to make them negates any fuel savings. It's the same with ALL the alternatives.
My only hope is that the peak is delayed long enough for Holden to have it's moment in the sun in the US before the whole system collapses.
Big cars, small cars, it doesn't matter when gas costs $50/gallon.
So buy a V8 now before it's too late!