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.
