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Holden developing Cruze hatchback

06/03/2009, 6:10 PM

By Drew Johnson

Holden – General Motors’ Australian division – has confirmed that it is working on a hatchback version of the Cruze sedan. Holden will be responsible for the design and engineering of the new Cruze variant, and will also produce the new model at its Elizabeth plant.

The Cruze hatch will begin production in the third quarter of 2010 and will be sold in a number of global markets. Holden has already set aside about $480 million for the development of the new model, according to Australia’s Drive.

In Australia, the Cruze hatch will essentially take over the market segment previously held by the Opel-made Astra. Holden was forced to stop importing the Astra after unfavorable exchange rates made making a profit impossible – the same story we have heard in the U.S. about the Saturn Astra.

The Cruze hatch could also surface in Europe under the GM’s Vauxhall brand. Like Holden, Vauxhall sourced its Astra model from Opel. However, now that Magna has control of Opel, the Vauxhall brand is essentially cut off. The Cruze hatch could be the perfect vehicle to fill the void left by Opel’s departure from the GM corporate umbrella.

It remains unclear if GM has any U.S. plans for the Cruze hatch, but it seems likely. GM recently yanked the rug out from under Holden by cancelling its Australian-made G8 program – costing the company hundreds of millions in lost revenue — but the Detroit automaker could make things right by sourcing the new small car from Holden. Adding credence to that theory, the Cruze hatch will be powered by GM’s new 1.4L turbo four, which has already been approved for U.S. use.

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06/03, 6:38 PM

posted by:

Pazzo Canguri

BS

06/03, 6:40 PM

posted by:

DeansterTJ

I agree, bullsh.it as well.

06/03, 6:47 PM

posted by:

l.sanchez

How about they just bring A version of it…any version let alone start hypothesizing about new “versions”. GM’s late to the game again.

06/03, 7:35 PM

posted by:

Borat

What is/was wrong with Astra? Over 300K units were sold in Europe per year, there is nothing to cry about. It outsold Golf, and that is achievement for European market.

06/03, 7:41 PM

posted by:

A4

Probably the fact that Opel isn’t under GM’s full control anymore, Borat.

06/03, 7:45 PM

posted by:

jandrews90

@Borat – Nothing in particular was wrong with the Astra, it just became to expensive after import in order to compete in the NA market, and apparently the australian market. oh and it was badged a Saturn here, that couldn’t have helped

06/03, 8:13 PM

posted by:

DB9

Why this erroneous info keeps making the rounds…? See my post last night:http://www.leftlanenews.com/gm-deal-blocks-magna-from-selling-opels-in-us-china.html

Vauxhall is included in the new arrangement – they are one and the same. The back-room talks were about which plants, i.e., British, German and other, would take the brunt of job cuts. GM Europe, Opel and Vauxhall are all in this together, Opel just has few new members at its table. The reason this was done in the first place, require GM to take on partners (sell equity stakes) was to placate the Germans stipulation that they wanted guarantees that their money (bridge loans) would remain in Europe – specifically Germany! Sheesh, will some news site get this right? Or do we wait for the formal paper work to be published in about 6 weeks (will say essentially the same)

DB9;-)

06/03, 8:17 PM

posted by:

DB9

Sorry, forgot, as per the article at hand…Holden is developing the Cruze variant for its market and Oceania; this has been reported for more than a month now – see Holden’s news releases.

DB9

06/03, 8:20 PM

posted by:

AutoCritical

So they worked out its cheaper to design, test, and make a car in Australia, than import and market it?
Wow – Good for the Australian industry… it’ll be interesting to see how it turns out (quality wise)…

And this is probably why they wont want the Opels to be sold in China/US

06/03, 8:28 PM

posted by:

carstuff

.5 billion just to develop a hatch version? Awful pricy.

Also Opel/Vauxhaul are still part of GM.

06/03, 8:33 PM

posted by:

DB9

LLN, since I like y’all so much you can be one of the first:

http://gmeurope.com/restructuring/en/

2. GM’s ownership interests in Opel/Vauxhall and Chevrolet Europe (through GMDAT) are expected to become part of “New GM”.

GM Corporation is undergoing an expedited U.S. court-supervised process to pursue an asset sale to “New GM.”

“New GM” is expected to be launched in 60 to 90 days as an independent company with the dual advantages of being built from strong GM brands and operations, supported by a stronger balance sheet, due to a significantly lower debt burden and operating cost structure than before.

GM Europe is ready to operate on a self-financed basis.
Saab is not included in the U.S. filings. Saab continues to focus on reorganizing its business.

DB9;-)

06/03, 8:49 PM

posted by:

DB9

Okay, while I’m at it, one more: Canada could have done the same with GMCL (General Motors Canada Limited) as Germany did with Opel. Instead, due to the high degree of integration with the mother-ship they Just followed Washington’s lead and gave them 10B+ . As in Europe, China, Australia etc. GMCL functions outside of bankruptcy. This is a lot more complex then what most people believe. They didn’t bring down the whole company just forced the mother-ship in the States to restructure. If they are not successful a few years from now – then you will see a dismantlement;-)

DB9;-)

06/03, 10:01 PM

posted by:

psiclone

Very informative DB9. Thank you for providing information and a link. It’s one thing to read falsehoods in posts but quite another to read misinformation from news reporting outlets.

06/03, 11:04 PM

posted by:

DB9

Thanks Psicione… I could give them all, as anyone can… they’re readily accessible. To Finish my GMCL line of…

http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/gmnews/viewmonthlyreleasedetail.do?domain=882&docid=54681

“While our parent, General Motors Corporation, has announced it will complete its restructuring through the use of a court-supervised process in the U.S., GM Canada will complete its restructuring without the use of a court-supervised process. We do not expect GM Canada’s operations to be impacted by the U.S. filing. GM U.S. and GM Canada expect that their customer service, manufacturing and supply chain will continue with minimal disruption:…”

It’s the same for all International operations with minor variations on the theme.

DB9;-)

06/04, 9:34 AM

posted by:

HoosierHero

Thanks for the link DB9. So is that saying that Opel/Vaux will stay partly owned by GM now? It mentioned a partnership with Magna. Did anyone else get the GM email this morning? Nice touch even if everyone knows the reasons why they went into Chapter 11.

06/04, 11:10 AM

posted by:

shaver

480 million to develop a hatch back edition of an existing vehicle and your not going to bother bringin it to worlds largest market?

06/04, 11:18 AM

posted by:

Barry Obama

$480 Million for Holden to try and come up with a car as good as a Vauxhall…

Holden please just save tax payers money and die and let the Europeans and Japanese make cars.

06/04, 12:02 PM

posted by:

leftwingagenda

i’m interested in how the hatch version would look…i generally like the lines of the cruze, and i’m thinking a hatchback might spoil the look…

shaver, when the world’s largest market shows evidence that it would be profitable to bring the cruze hatch here, then they should bring it here…in the US market, though, hatchbacks aren’t nearly as popular as they are elsewhere…it might not make financial sense to bring them here if the projected sales numbers won’t cover the cost of jumping through all the hoops required to sell the car here (safety regulations, etc.)…

somebody brought the quality issue up, which i find interesting…nobody has really raised the “i’m worried about quality” flag with the G8, and this is the same manufacturer…until there’s a cry out that “my G8 fell apart sitting in the driveway!” we don’t really have a reason to suspect the cruze hatch would be prone to reliability issues…i’m sure with some creative googling you could find more info about holden’s reliability record…

06/04, 12:26 PM

posted by:

DB9

HoosierHero, Yes, Opel/Vauxhall will be partially owned by GM, was 100%, but GM remains in the drivers seat. Its China and Korea operations are 50% owned with GM being in the drivers seat.

The fact remains as to who controls the technology of GM’s international operations – that would be the Mother-ship GMC (General Motors Corporation). Unlike Ford of Europe, which could function as an independent company, GM’s operations are dependent on the global resources of the company. Sadly, Saab while sharing platforms and drivetrains is soon to be on its own.

DB9;-)

06/04, 12:48 PM

posted by:

Borat

Lefty, I don’t believe US is any longer largest market, maybe richest, but it is a maybe when you think of UAE and Saudi Arabia. EU has larger population and China is fastest growing: they buy largest amount of cars.

06/04, 12:57 PM

posted by:

RaineMan

So… no coupe version, and no SS version. I guess GM figures if you want a “sporty” car for under $50,000 you’ll buy a Mullet, I mean Camaro.

06/04, 2:16 PM

posted by:

HoosierHero

Make it a GT version RaineMan but let’s not muddy up the SS badge any more than we have to. I got so tired of almost wrecking when I would see a Malibu SS! lol

06/04, 3:49 PM

posted by:

JakeK66

This is bullpoo… We’ll get this model instead of a superior Astra? Great, just freakin’ great. GM doesn’t let us get the Astra because they cut it off for Magna to bring over. GM go F@ck yourself!

06/04, 7:36 PM

posted by:

carstuff

Jake, it was reported earlier that the reason the Astra is cut off is because of dollar value. Just too expensive if it was imported.

the Cruze will be made here in the states.

Also not sure why the Astra would be better than Cruze. Cruze has gotten excellent reviews elsewhere.

 
 
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