Spied : Holden's Aussie Made Cruze

[csv8]

Spied: Holden's Aussie-made Cruze
Toby Hagon and Matt Campbell.
December 4, 2010

Australian-made versions of the Holden Cruze are caught testing in NSW.
Our new small car will feature a big local line-up, write Toby Hagon and Matt Campbell.

Holden is in the final throes of readying an expanded, multi-tiered line-up of its soon-to-be-Australian-made Cruze small car ahead of its March release.

The first small car to be built in Australia in more than a decade has been caught undergoing final development testing in New South Wales as further leaked details suggest the sedan and hatch will be offered with at least four different four-cylinder engines.

The range will eventually add a sports model to tackle hot-hatch kings such as the Volkswagen Golf GTI and Subaru WRX.

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Set to replace the Cruze that has until now been imported from Korea, the locally made model will feature a hatchback for the first time and is set to have one of the most expansive small-car ranges in Australia, with prices likely to stretch from about $20,000 to more than $40,000.

While it won't have the unprecedented eight-engine range of the rival Volkswagen Golf, the combination of body styles, engines, model grades and transmissions will give Holden an expansive line-up that looks certain to put pressure on the ageing Epica mid-sized car that's soldiered on against fresher competition.

Due to the imminent price clash, the Cruze will probably steal some sales from the Holden Commodore alongside which it will be built in South Australia. But insiders are understood to be keen to capitalise on the downsizing trend that has seen small cars emerge as the most popular new-car segment, following a decade-long demise in large-car sales.

The Cruze will likely make a bold pitch for the No. 1 status in the small-car class, but it will have to pip Toyota's Corolla and the Mazda3 — both of which have outsold it this year. It would also threaten Commodore's record-breaking run, which is on track to notch up its 14th consecutive year as Australia's best-selling vehicle.

So far this year, Mazda has sold 32,604 of its 3s, while Holden has sold 38,407 Commodores.

The Australian-made Cruze will be offered with the current model's 1.8-litre four-cylinder and 2.0-litre turbo diesel engines, although tweaks are likely in line with Holden's push to introduce incremental economy gains.

While it won't be available at launch, Holden is believed to be readying a new 1.6-litre turbocharged four-cylinder that will give it a genuine hot-hatch version of the Cruze.

The new engine produces 132kW and is said to be easily tuned to "closer to 150kW", opening the door for HSV to return to the increasingly popular turbocharged four-cylinder scene.

However, the new 1.4-litre turbocharged four-cylinder is likely to throw down the fuel-economy gauntlet. The current Cruze 1.8-litre model uses 7.0 litres per 100 kilometres of fuel but the more efficient 1.4-litre turbo fitted to the Opel Astra in Europe consumes just 5.9L/100km. Given its size, the Cruze should use a similar amount of fuel, reducing its fuel economy to levels close to that of the class-leading Golf; the new 1.2-litre Golf uses 6.1L/100km, while the 1.4-litre turbocharged and supercharged engine uses 6.2L/100km.

Of the half-dozen or so Cruzes our spies spotted testing, some were believed to be fitted with the much-anticipated new 1.4-litre turbo. That engine produces 103kW overseas but is said to be capable of more, with engineers believed to be working on a higher-output version that promises to address one of the biggest concerns with the current Cruze — its lacklustre performance.

The local Cruze is also expected to bring updated styling. Under the black cladding hides a new front fascia, with an updated black mesh grille and more aerodynamic lower bumper bar. New wheel covers and wheels will also help differentiate the various models.

Holden spokesman Jonathan Rose won't give too much away but tells Drive he thinks the new Cruze will offer Australian buyers a better package.

"We're not ready to discuss details on the local range yet but we think we'll be making an incredibly popular small car even better," Rose says.

My comment Where is the new Focus ???? 12-18 months away!!!! Ford need to update product much sooner. eg " new Tezza should have been here by now with the diesel. No wonder Ford sales are bad!!!

[Ford_The_Win]

If they were smart, they'd change it's name to Torana and watch the sales hit the roof.

[NAFairlane]

this could be very interesting, especially if they can beef the engine up a bit, i have driven a number of the current model and the petrol one is just so gutless, and in auto its almost unbearable, i have never known a modern engine to be so reluctant to rev or produce any form of power, and the auto is shocking. However a manual turbo diesel version is a very nice car to drive.

[Bobman]

Originally Posted by mick_1010

If they were smart, they'd change it's name to Torana and watch the sales hit the roof.

Yeah. Whatever happened to the new Torana concept?

[Nikked]

Torana concept was a display for GM's mid size Alpha platform and provided hints for GM-H's design language for the VE commodore.

[Bossxr8]

I'll be interested to see how much more expensive the australian made version will be, depending on how tiny a profit, if any, Holden plan to make on it.

I'm assuming if the price is very close to the Korean made vehicles then they will have slashed potential profits to the bone.

[bobthebilda]

Originally Posted by Bossxr8

I'll be interested to see how much more expensive the australian made version will be, depending on how tiny a profit, if any, Holden plan to make on it.

I'm assuming if the price is very close to the Korean made vehicles then they will have slashed potential profits to the bone.

I cant see how they could even think of raising the price. Up until a few months ago, the cruze, lancer and mazda 3 base models were all being advertised at $22990 driveaway. Since then, the lancer has dropped to $20990 and the mazda 3 to $21990.

If they drop the cruze to $20990, then Holden are going to be pushing them out the door at approx $16000 (plus $1600 GST, Plus $640 stamp duty, Plus $600 rego, plus $600 transport, plus $500 finance plus $1000 dealer profit). If you get Government dept.s/ fleets swapping from commodores to cruzes, Holden will be in big trouble.

Toyota sold 4500 corollas last month, and they wouldnt even contemplate making them in australia. Making 30,000 cruzes a year for $16000 in australia, is just asking for red ink on the balance sheet. If they were to pump out 200,000 per year, it may make the sums a bit more viable.

[Joe5619]

Where are the pic's if it was spoted? What website did that come from?

I think it is going to be very very very interersting to see what happens when Curze comes out.. How much of an increase to production will it be, how much will commodore drop because of it, will Holden's total sales increase on a combined cuze/ commodore total bases.. Very very very interesting times ahead!

[Ryan]

Originally Posted by mick_1010

If they were smart, they'd change it's name to Torana and watch the sales hit the roof.

Most new car buyers probably don't know what a Torana is, so unless Holden are trying to appeal to diehard Torana fans I don't think calling it a Torana will have a significant impact on sales.

[TUF_302]

Calling it a Torana would be a bad idea, especially if its just a rebadged cruze, who would buy a FWD 4 door 4cyl Torana?? No one in my opinion

[buggerlugs]

The all new Holden "Aussie Cruze" . Standard features include Stubbie Holder, Pack of Winnie Blues, thong rack and special all new sporty "VB" decals............

[ThaFlash]

Originally Posted by csv8

The range will eventually add a sports model to tackle hot-hatch kings such as the Volkswagen Golf GTI and Subaru WRX.

I dunno about you fellas, but I want to see at least a RWD.

[Gobes32]

Originally Posted by TUF_302

Calling it a Torana would be a bad idea, especially if its just a rebadged cruze, who would buy a FWD 4 door 4cyl Torana?? No one in my opinion

But I would buy it if it was RWD and came with the 6.2ltr........ drool

[Ford_The_Win]

Originally Posted by TUF_302

Calling it a Torana would be a bad idea, especially if its just a rebadged cruze, who would buy a FWD 4 door 4cyl Torana?? No one in my opinion

Good point, but since when have General Motors been bothered about giving classic muscle RWD nameplates to FWD slushmobiles?

[bobthebilda]

Just a little comparison about how well Holden are going to do with the Cruze. I remember back in 1992 having a little pulsar as a loan car for 2 weeks. Quite a zippy little car, and from memory, Holden shared this car and named it the Astra. The reason for the name sharing, was that Nissan said they needed to sell 40,000 of them to make it viable to manufacture. And this was at a time when import tarriffs on cars were 35 percent. As is seen from the site

http://www.mynrma.com.au/cps/rde/xch...car_review.htm

The base model Pulsar in 1992 was going for $17200 (plus on road costs, which i guess would have taken it to over $20,000)

In 1992 Nissan decided to pack up shop in australia.

SO with a 35% tariff protection (now 0 to 5%), with a decision that 40,000 sales per year was viable (cruze currently selling under 30,000 annually) and a wholesale price that would not be dissimilar to what the cruze will be sold by Holden today (despite 46% cumulative inflation), Holden think they can make money by making the cruze locally.

I reckon right now, Holden top brass are having nightmares everytime they go to bed.

[outback_ute]

I wonder how many govt sales will transfer from Corolla etc to the Cruze on the basis of it being locally assembled?

[Brazen]

Originally Posted by bobthebilda

Just a little comparison about how well Holden are going to do with the Cruze. I remember back in 1992 having a little pulsar as a loan car for 2 weeks. Quite a zippy little car, and from memory, Holden shared this car and named it the Astra. The reason for the name sharing, was that Nissan said they needed to sell 40,000 of them to make it viable to manufacture. And this was at a time when import tarriffs on cars were 35 percent. As is seen from the site

http://www.mynrma.com.au/cps/rde/xch...car_review.htm

The base model Pulsar in 1992 was going for $17200 (plus on road costs, which i guess would have taken it to over $20,000)

In 1992 Nissan decided to pack up shop in australia.

SO with a 35% tariff protection (now 0 to 5%), with a decision that 40,000 sales per year was viable (cruze currently selling under 30,000 annually) and a wholesale price that would not be dissimilar to what the cruze will be sold by Holden today (despite 46% cumulative inflation), Holden think they can make money by making the cruze locally.

I reckon right now, Holden top brass are having nightmares everytime they go to bed.

Back then, private buyers bought large cars. Local producers had to sell the majority of their small cars to 0 profit rental fleets, company fleets and government fleets. The remaining private purchases, purchased namely on price so most small cars were the base model with 0 options.

Nowadays its different, Mazda 3 is the biggest selling car to private buyers. People want premium small cars, they want features, luxuries and sportiness and they dont mind paying for it. The leather lined Cruze CDX is a significant proportion of sales, people are also opting for the $2000 auto and $2000 diesel.

People have to realise the market has changed, either you adapt or die.

And unlike Ford having to spend $500 million developing the FG to sell 25,000 rental cars a year, Holden can just plug the Cruze into the production line and piggyback off the global GM development, they can also piggyback off global Cruze production and use its economies of scale to source parts ridiculously cheap.

[aussie muscle]

Set to replace the Cruze that has until now been imported from Korea, the locally made model will feature

i'll bet if you asked the average holden buyer, they'd probably think the curze was already made in australia.

[Bud Bud]

Originally Posted by aussie muscle

i'll bet if you asked the average holden buyer, they'd probably think the curze was already made in australia.

What does it matter what people think where the car is made??? They are already selling more than the Falcon which everybody knows is made here. And besides, most people do know that none of the Mazda range is made here and this has never held back Mazda sales either. Maybe Holden may lose sales once people begin to realise that the car is being made in Australia.

I know this is a Ford Forum but some really need to understand that this is not a Holden vs Ford exercise (the same way Falcon has versed Kingswood /Commodore), but rather an assault on the growing medium size market held strongly by not just traditional imports but new comers as well, which is the real enemy. Change with the times or sit on your hands at your own peril.

Bud Bud

[dylancox]

Originally Posted by mick_1010

Good point, but since when have General Motors been bothered about giving classic muscle RWD nameplates to FWD slushmobiles?

Chevy Impala.. enough said

[bobthebilda]

Originally Posted by Brazen

And unlike Ford having to spend $500 million developing the FG to sell 25,000 rental cars a year, Holden can just plug the Cruze into the production line and piggyback off the global GM development, they can also piggyback off global Cruze production and use its economies of scale to source parts ridiculously cheap.

You seem to forget the FG may have cost 500 million to develop, but apparantly Holden spent 230 million of its own money and about 180 million of government money to set up to make a cruze (a car that was already developed, and was being produced). Confused with the wild discreprency there. Lets just assume it cost very little money to set up for the cruze, and now Holden has alot of government money sitting in the bank, which will allow it sustain low prices on the commodore, puting great pressure on the Falcon.


Doesnt the economies of scale argument sought of negate the whole prupose of building the cruze here. I assume your aluding to the fact that the majority of the cruze parts will still be imported, and basically just assembled here (which we all know is the fact). Not that Holden or the government will let the people know the truth.

And if one really wanted to capitalise on the economies of scale arguement, wouldnt you push the cruze out off a factory producing the industry norm of 400,000 cars per year, instead of a 30,000 build rate.

[Bossxr8]

Originally Posted by Brazen

Back then, private buyers bought large cars. Local producers had to sell the majority of their small cars to 0 profit rental fleets, company fleets and government fleets. The remaining private purchases, purchased namely on price so most small cars were the base model with 0 options.

Nowadays its different, Mazda 3 is the biggest selling car to private buyers. People want premium small cars, they want features, luxuries and sportiness and they dont mind paying for it. The leather lined Cruze CDX is a significant proportion of sales, people are also opting for the $2000 auto and $2000 diesel.

People have to realise the market has changed, either you adapt or die.

And unlike Ford having to spend $500 million developing the FG to sell 25,000 rental cars a year, Holden can just plug the Cruze into the production line and piggyback off the global GM development, they can also piggyback off global Cruze production and use its economies of scale to source parts ridiculously cheap.

FG was $800 million to develop.

[Stoney!]

Originally Posted by bobthebilda

Just a little comparison about how well Holden are going to do with the Cruze. I remember back in 1992 having a little pulsar as a loan car for 2 weeks. Quite a zippy little car, and from memory, Holden shared this car and named it the Astra. The reason for the name sharing, was that Nissan said they needed to sell 40,000 of them to make it viable to manufacture. And this was at a time when import tarriffs on cars were 35 percent. As is seen from the site

http://www.mynrma.com.au/cps/rde/xch...car_review.htm

The base model Pulsar in 1992 was going for $17200 (plus on road costs, which i guess would have taken it to over $20,000)

In 1992 Nissan decided to pack up shop in australia.

SO with a 35% tariff protection (now 0 to 5%), with a decision that 40,000 sales per year was viable (cruze currently selling under 30,000 annually) and a wholesale price that would not be dissimilar to what the cruze will be sold by Holden today (despite 46% cumulative inflation), Holden think they can make money by making the cruze locally.

I reckon right now, Holden top brass are having nightmares everytime they go to bed.

This was not the only reason, holden also made the dash engines and ECU's for said pulsar.

Stoney!