Holden ute could capitalise on struggling US

csv8 · 27-04-2011, 09:37 PM

Holden ute could capitalise on struggling US
Barry Park
April 27, 2011 - 9:57AM
Comments 35

Holden's Commodore-based utes could be headed for the US.
American tradesmen looking to downsize could yet find an Aussie ute suits their needs.

Hard times in the US may open up an opportunity for the Holden Commodore-based ute to gain a foothold there, the head of General Motors' North American operations says.

Mark Reuss, the former managing director of GM's Holden Australia subsidiary who has since moved on to head up the company's US operations, says if hard times continue, fuel prices keep rising and tradesmen look to downsize from massive pick-up trucks to more economical vehicles, the ute's day may still come.

He says the US is also staring in the face of tougher emissions controls scheduled to roll in from 2016 that will force car makers to rethink the model line-ups they sell, particularly in terms of lowering the carbon dioxide emissions of their showroom fleets.

''The bandwidth we have on pick-up trucks in the US is huge,'' Reuss told Drive at the New York International Auto Show last week.

''When you look at fuel prices today, I think there's going to be a segmentation of that bandwidth,'' he says.

''I've lived in Australia and I've seen where fuel prices are $5 a gallon [the US is currently struggling with fuel prices pushing $4 a gallon], and lots of tradesmen will use a ute with a tray on the back to do lots of different things, and they don't need the bandwidth of a big pick-up truck,'' he says.

''I get my job done, and I do it with a lot less operating costs [with the smaller ute] and enjoy the vehicle.

''I think there's opportunity in other markets around the world to look at how the micro-segmentation actually works,'' Reuss says.

However, the right change for the Holden ute is yet to happen. Reuss says the heavy-duty pick-up market is still ''robust'', although owners will have to make a substantial investment in a replacement vehicle once the US economy picks up.

''There's a big, pent-up demand ... because those trucks are used hard, they're used to make a living,'' he says.

Holden is believed to be waiting for the next major model update to the VE Commodore sedan, expected in about 2014, before making a fresh assault on the US market.

Shortly before the global credit crunch hit in 2009, as many as half of all the Commodores coming off Holden's Port Elizabeth assembly lines were destined for overseas markets including the US.

The US models were sold under the Pontiac name, which GM has since shelved as it consolidated the number of brands it owned to fight off the threat of bankruptcy. However, Holden has since built up a police vehicle export program based on the long-wheelbase Holden Caprice that it is selling under the Chevrolet badge, with any future Commodore program expected to follow suit.

My comment..Why isn't FOA being as proactive as GM??????????????

**Polyal** · 27-04-2011, 09:56 PM

What a load of BS.

Resurrection · 27-04-2011, 10:11 PM

Quote:

Originally Posted by Polyal

What a load of BS.

+1

Brazen · 27-04-2011, 10:11 PM

Quote:

Originally Posted by csv8

My comment..Why isn't FOA being as proactive as GM??????????????

The thing is, Holden has always had friends in high places which helps them immensly.

Mark Reuss talking to an American publication on American soil said his two career vehicle highlights was developing the incredible Cadillac CTS-V Coupe, and....... getting Australian production of the Cruze - this coming from the President of GM North America! talking about whacking the Cruze in at Elizabeth as one of the things he is most proud of.. The GM bigwigs love Holden and that will help Holden more than anything else in the next decade.

http://www.autosavant.com/2011/04/21...north-america/

SteveJH · 27-04-2011, 10:16 PM

He's the former Managing Director of Holden, getting Cruze is probably the biggest thing he did while in that job, what else is he going to tell them? "I led holden to making a multi-hundred million dollar loss while I was in charge"?

Brazen · 27-04-2011, 10:22 PM

Quote:

Originally Posted by SteveJH

He's the former Managing Director of Holden, getting Cruze is probably the biggest thing he did while in that job, what else is he going to tell them? "I led holden to making a multi-hundred million dollar loss while I was in charge"?

He led engineering for GM large luxury cars and also was part of the introduction of the V-series high performance Cadillacs... For him to mention Australian Cruze production of one of his proudest achievements speaks volumes where Holden sits with him.

vztrt · 27-04-2011, 10:24 PM

Quote:

Originally Posted by SteveJH

He's the former Managing Director of Holden, getting Cruze is probably the biggest thing he did while in that job, what else is he going to tell them? "I led holden to making a multi-hundred million dollar loss while I was in charge"?

Hey you get promoted for that at GM. Why worry when the government will bail you out.

DanielXR8 · 27-04-2011, 10:15 PM

I don't think the yanks are ready to downsize right now, as most seem to be under the impression anything less then a V8 3+ ton truck can't do anything, but if fuel prices go up the reality that the rest of the world gets by fine without these trucks for the trip to the hardware store might kick in.

Holden only need a tiny share of the truck market in the US, to have a huge hit on their hands. For the sake of the Aussie auto industry, I hope they succeed.

Dan

DanielXR8 · 27-04-2011, 10:27 PM

For those who are critical of Holden, they survived through the liquidation of their parent company and the cancellation of an important export market. Despite that they remained number one in Australia, continued to export to other markets, looked for more opportunities for growth, launched a new mid size car program and have the biggest and most influential players in GM singing their praises.

Credit where it is due.

Ford Australia could do with a bit more of the support Holden gets from its parent and we as Ford fans should be asking for it. Ill informed comments like the recent ones from a Ford family member that Falcon wouldn't work in the US, because its too much like a Mondeo, should be shouted down by Ford fans, the media and our government.

Putting down Holden for being smart enough to find a way to turn its management into fans of the brand and their work,smacks of sour grapes.
Whats happening at Holden is bloody good news for Australia and good on them.

Dan

Joe5619 · 28-04-2011, 07:56 AM

Quote:

Originally Posted by DanielXR8

Despite that they remained number one in Australia,

How do you figuire that? Toyota sells & builds the most cars here in Australia.. Holden is number 2!!!

And for those that say Ford US should be praising Ford Aust more.. Please read link below!!! Open your eyes Ford US are prasing Australia.

http://www.fordforums.com.au/showthread.php?t=11329565

Smoke Pursuit · 28-04-2011, 08:47 AM

Quote:

Originally Posted by Joe5619

How do you figuire that? Toyota sells & builds the most cars here in Australia.. Holden is number 2!!!

And for those that say Ford US should be praising Ford Aust more.. Please read link below!!! Open your eyes Ford US are prasing Australia.

http://www.fordforums.com.au/showthread.php?t=11329565

Toyota sells the most cars in Australia, it does not build the most tho! Holden still build the most, and Ford builds more here then Toyota.

Toyota only build Camry and Aurion here, and Hybrid Camry

bigsta · 28-04-2011, 08:48 PM

Quote:

Originally Posted by DanielXR8

For those who are critical of Holden, they survived through the liquidation of their parent company and the cancellation of an important export market. Despite that they remained number one in Australia, continued to export to other markets, looked for more opportunities for growth, launched a new mid size car program and have the biggest and most influential players in GM singing their praises.

Credit where it is due.

Ford Australia could do with a bit more of the support Holden gets from its parent and we as Ford fans should be asking for it. Ill informed comments like the recent ones from a Ford family member that Falcon wouldn't work in the US, because its too much like a Mondeo, should be shouted down by Ford fans, the media and our government.

Putting down Holden for being smart enough to find a way to turn its management into fans of the brand and their work,smacks of sour grapes.
Whats happening at Holden is bloody good news for Australia and good on them.

Dan

Totaly agree mate

also the old el camino was extremely popular in the states in the 70s and 80s the el camnino was basically a ute with a few goodies and the SS re-branded el camino would sell very very well there.

I really wish Ford oz would learn a thing or 2 from holden perhaps than they can get more $ and make better cars as their engineers have great ideas but rarely are they put into practice well and given the numbers sold you cant really blame em too much.

Falcon really should go to the states too, they would love that car and ford US dont have a RWD platform anymore.

Smoke Pursuit · 27-04-2011, 10:45 PM

Problem with the whole commodore idea is pricing...

Where will it be priced in their market.. If I recall the G8 suffered because of its pricing point. Cars are still expensive to build and export to the US from Australia.

Brazen · 27-04-2011, 11:58 PM

Quote:

Originally Posted by DASH GT

Problem with the whole commodore idea is pricing...

Where will it be priced in their market.. If I recall the G8 suffered because of its pricing point. Cars are still expensive to build and export to the US from Australia.

Plus being a commercial vehicle wouldnt it get the 25% Chicken Tax??

I heard Ford gets around this with the Transit Connect by importing them with rear seats and then throwing the rear seats away when they arrive in the US.

ray38l · 27-04-2011, 11:03 PM

Ford oz would love the support and confidence shown in there product that holden get from GM.

BigAL_250 · 27-04-2011, 11:07 PM

That's hilarious since GoAuto ran a story just last week saying pretty much the opposite. No Holden utes in US for some time.

http://www.goauto.com.au/mellor/mell...257879001C118E

Gobes32 · 27-04-2011, 11:09 PM

Seems very small minded considering that the aussie ute is a declining segment as it struggles to adapt to modern needs. The dual cab is where it is at, as evident by VW's foray into that market.

naddis01 · 28-04-2011, 08:51 PM

Quote:

Originally Posted by Gobes32

Seems very small minded considering that the aussie ute is a declining segment as it struggles to adapt to modern needs. The dual cab is where it is at, as evident by VW's foray into that market.

I agree that dual cabs are where its at. I am at the stage of life where we have a growing family but I need a ute so a single cab 2 seater is no longer going to cut it, which means bye bye Falcon for me. Which is unfortunate as I really like the handling and comfort benefits of a car based ute.

Does anyone think the Crewman may have been more of a success if they made the tray around 100mm shorter to allow more space in the rear of the cabin?

Gobes32 · 28-04-2011, 09:23 PM

Quote:

Originally Posted by naddis01

Does anyone think the Crewman may have been more of a success if they made the tray around 100mm shorter to allow more space in the rear of the cabin?

If I had the choice between a 2004 Rodeo or 2004 Crewman, I would pick the Rodeo. 4WD just makes the car more useful, even if you never use it, you know it's there.

Road_Warrior · 27-04-2011, 11:40 PM

Holden this, Holden that. Lots of "coulda woulda shoulda" in that article, authored by none other than...you guessed it, Drive. Absolute rubbish and based on nothing but spin and speculation.

chevypower · 28-04-2011, 04:42 AM

It's not going to ever be more than a niche vehicle in the US. I don't care what fuel prices do, it is not "the answer." I can guarantee that people would go for something like the VW Amarok, because of its practicality, utility and economy, before they would a Holden ute. So VW better get with it, it's not going to suit everybody, but it will be very popular nonetheless. As far as "the answer" goes, Americans (the ones that drive pickups) don't want to give up the comfort, power and the functionality of a pickup, so the answer is really alternative power and drivetrains, not lose all those benefits just to gain a couple of mpgs. That's my take on it anyway, and I think that's why the EcoBoost F150 is going to sell like hotcakes. GM is just being stupid.

aussie muscle · 28-04-2011, 09:24 AM

Quote:

Originally Posted by chevypower

I don't care what fuel prices do, it is not "the answer." .

Last time there was a major shift upwards in fuel prices, the us market shifted quickly towards smaller vehicles and large vehicles suffered. once the fuel price came down, suddenly SUVs and pickups were hot again.

all they need is a substantial fuel price rise and the market will swing around. if yanks wanted to force people into smaller cars for the 'sake of the environment' they need to sustain higher fuel prices.

chevypower · 28-04-2011, 10:28 AM

Quote:

Originally Posted by aussie muscle

Last time there was a major shift upwards in fuel prices, the us market shifted quickly towards smaller vehicles and large vehicles suffered. once the fuel price came down, suddenly SUVs and pickups were hot again.

all they need is a substantial fuel price rise and the market will swing around. if yanks wanted to force people into smaller cars for the 'sake of the environment' they need to sustain higher fuel prices.

I think what people will do is keep their trucks, but use them less frequently. Use a normal economical car for just driving from A to B. The people who buy the big diesel pickups as toys, will probably not get them, and people will buy trucks that are only as capable as what they need, rather than overkill. I just can't see many people trading in their full size truck to buy a 2 seat, 2wd ute.

Road_Warrior · 28-04-2011, 10:32 AM

Quote:

Originally Posted by chevypower

I think what people will do is keep their trucks, but use them less frequently. Use a normal economical car for just driving from A to B. The people who buy the big diesel pickups as toys, will probably not get them, and people will buy trucks that are only as capable as what they need, rather than overkill. I just can't see many people trading in their full size truck to buy a 2 seat, 2wd ute.

If anything, it may provide a greater opening for the global Ranger with Ecoboost engines rather than the Commodore ute.

chevypower · 28-04-2011, 10:36 AM

Quote:

Originally Posted by Road_Warrior

If anything, it may provide a greater opening for the global Ranger with Ecoboost engines rather than the Commodore ute.

I can see that as a possibility too. If they can make that I-5 diesel comply with US emissions, plus stick in the 2.0 EB, and keep the price low, that would sell pretty well. There is a theory that global Ranger would hurt F-series sales, which would mean Ford would lose the bragging rights that the F-series brand is the best selling. Unless they call the new Ranger "F-100" in North America.

ray38l · 28-04-2011, 08:39 AM

^ but they have only just recently started backing ford oz. Just look at holden and no ones talking about the commodore being replaced. That's because everytime GM get interviewed about holden they pretty much say they love it. The falcon needs support from head office because atm its a car in its last phase and no one wants to buy a car on death row.
On the main subject i think the ute will work in the states but it needs to be a 5 year plan to build up a customer base there. If they only give it 2 years to make an impact it won't work

chevypower · 28-04-2011, 08:48 AM

I think the Falcon and Commodore sedans could work in the US, I just don't think the utes will be that popular. For the sedans to work, they need to compete directly with the new Charger (and needs to be better), so it needs retro styling, and iconic names. Falcon might work, but Commodore should be changed to Chevelle or something like that. It has to look muscular and masculine. It needs to be a 4 door sports car, not a RWD large family car that blends in with the crowd. Anything short of that will not work well, in my opinion.

Ryan · 29-04-2011, 01:07 PM

Quote:

Originally Posted by chevypower

I think the Falcon and Commodore sedans could work in the US, I just don't think the utes will be that popular. For the sedans to work, they need to compete directly with the new Charger (and needs to be better), so it needs retro styling, and iconic names. Falcon might work, but Commodore should be changed to Chevelle or something like that. It has to look muscular and masculine. It needs to be a 4 door sports car, not a RWD large family car that blends in with the crowd. Anything short of that will not work well, in my opinion.

Coupe 60 as the new Chevelle SS? I know you said a 4 door, but the Coupe 60 as a new Chevelle would have me sold.

By all accounts if GM were to go with Chevelle branding I think it should be a 2 door. That's all I think of when I think of the original Chevelles.

Buntz · 29-04-2011, 02:05 PM

Quote:

Originally Posted by chevypower

I think the Falcon and Commodore sedans could work in the US, I just don't think the utes will be that popular. For the sedans to work, they need to compete directly with the new Charger (and needs to be better), so it needs retro styling, and iconic names. Falcon might work, but Commodore should be changed to Chevelle or something like that. It has to look muscular and masculine. It needs to be a 4 door sports car, not a RWD large family car that blends in with the crowd. Anything short of that will not work well, in my opinion.

Falcon could make it in America. But to make it there, at the cost we sell it for here.... it'd have to wear a lincoln badge.

It would make a great come back for the Lincoln Versailles. Or Continental.

jpd80 · 29-04-2011, 06:27 PM

Quote:

Originally Posted by Buntz93ED

Falcon could make it in America. But to make it there, at the cost we sell it for here.... it'd have to wear a lincoln badge.

It would make a great come back for the Lincoln Versailles. Or Continental.

The only way a "Falcon" would get to America is to build it alongside the Mustang at Flat Rock,
it's just not economic to build them here and export there and if Holden had any brains they would
get GMNA to build Commodore and Caprice alongside Camaro at Oshawa, Canada.