Cruze wagon next car to join Australian production?

[Brazen]

I hope people dont mind me posting about happenings in the local industry even if it is Holden.

Should be interesting, Holden havnt committed but language seems pretty positive if the wagon is recieved well. It looks a hundred times better than the hatch. SRI wagon I think could be a good seller.

Any investment is good for the rest of the industry and hopefully encourges the other locals Toyota and Ford. No doubt if it does happen it will be with government support.





http://www.goauto.com.au/mellor/mell...25799F007D31F7

Holden mulls local production of Cruze wagon that was spawned by Holden Design
10 February 2012
By RON HAMMERTON
HOLDEN played a major role in the design of General Motors’ new Cruze wagon that is set to go public at the Geneva motor show next month ahead of its roll-out across Europe and Australia.

The original design theme for the wagon was done by Holden designer Lee Mitchell in parallel with the five-door Cruze hatch at Holden’s Port Melbourne studios.

And like the Cruze hatch, the wagon is highly likely to go into production at Holden’s Elizabeth plant in South Australia, bringing local Cruze production to three variants.

Holden will import the new wagon from GM Korea initially when it introduces it to local showrooms in about 12 months, but GM Holden senior manager for product communications Kate Lonsdale told GoAuto that Holden was considering putting the wagon down the local production line with the hatch and sedan if initial customer reaction to the imported version is warm.

“We will test the public reaction to it, and if it is positive, we will look at making it locally,” she said.

Left: Holden Cruze hatch and sedan production at the Elizabeth plant in South Australia.

The move would be a shot in the arm for the Elizabeth plant that is under pressure from high Australian dollar exchanges rates and falling sales of the Commodore large car that is also built there.

The new Cruze wagon – the third and probably last body style in the current generation of GM’s global small car that is sold elsewhere under Chevrolet badges – was originally penned alongside the Cruze hatch that shares a number of mechanical similarities, known in car company jargon as “hard points”.

The lack of a rear bulkhead is one of the common features of a hatch and wagon – and major differences from the sedan – requiring a similar design around the rear half of the vehicle.

Unlike the Cruze hatch, which remained under the sole development of Holden Design, the wagon project was finished off at GM Korea – but with continuing Holden influence.

While the new wagon will be aimed at families, the spacious load lugger is likely to be a hit with Australian fleets, with a cargo carrying capacity of 500 litres – 55 litres more than the Cruze sedan and 87 litres more than the Cruze hatch.

The Cruze wagon has 1500 litres of space up to the roof line with the rear seats folded. By comparison, the larger Holden Sportwagon has 2000 litres of cargo capacity in the same configuration.

The Cruze wagon is 4675mm long – 165mm longer than the Cruze hatch and 74mm longer than the sedan.

Although Holden has not disclosed the powertrain options for the wagon, GM announced overnight that it would show an all-new 1.7-litre diesel engine in new wagon at the Geneva show that starts on March 8.

The engine – dubbed VCDi – produces 96kW of power, which is 24kW less than the current 2.0-litre diesel offered by Holden in the Cruze range.

However, CO2 emissions from the 1.7-litre engine are significantly lower, at 119 grams per kilometre, compared with 147g/km for the current engine.

Ms Lonsdale said the new wagon should debut in “almost 12 months”, indicating a January 2013 target launch timing for the new variant.

Holden executive director of sales, marketing and aftersales John Elsworth said Cruze wagon would tick all the boxes, offering distinctive design, dynamic driving, space and economy.

“Cruze has been a fantastic success story for Holden, it’s been extremely well received by our customers making it Australia’s fifth highest-selling car in 2011,” he said.

“We’re confident Cruze wagon will take the nameplate from strength to strength and reach new customers who are looking for more versatility.”

The Cruze last month was Holden’s biggest seller, taking over from Commodore for the first time.

Globally, Cruze has been a hit for GM, helping to drive the company back to global number one, greater than expected sales volumes in the compact car segments of North America and China.

In Australia, the Cruze wagon will compete against a select group of similar vehicles in the small-car segment, where the only current contenders are Hyundai’s i30cw, Volkswagen’s Golf wagon and the Peugeot 308 wagon.

Of these, the most affordable is the i30cw, which starts from $22,090 (plus on-road costs).

Cruze sedan and hatch pricing starts at $21,240 for the 1.8-litre petrol variants, and depending on how Holden plans to specify the wagon, pricing could be the same, making Cruze the most affordable wagon in the small-car segment.

The Cruze wagon – to be called Chevrolet Cruze Station Wagon in Europe – will have roof rails as standard on the sloping rear roof line.

American reports suggest the wagon version will not be offered in the US, which does not take the Australian-penned hatch either, sticking instead to the sedan.

[Nikked]

Holdens adds will convince you it already is


Wait, An actual wagon...


My bad...

[jpd80]

I predict Wagon replacing Sedan, the combination of Hatch and S'wagon will add significantly to Holden's bottom line...

[Bossxr8]

Small wagons usually don't sell well, which is why most of the others don't bring them here. Focus wagon etc.

Which is also why Holden have choosen to get them from Korea, to see if anyone gives a hoot. I don't think they will sell enough to make it worth their while to build it here, especially with a new Cruze due in a few years.

I wouldn't hold my breath.

[Airmon]

I Doubt there are even many talks about it going into production in Aus anytime soon. Holden can't build enough Cruzes as it stands anyway with long waiting lists. Adding a locally produced wagon to the range instead of importing it will just make the wait longer and a huge cost to them.

[1TUFFUTE]

IT HAS TO BE SAID BUT I SURE HOPE THEY ARENT FISHING FOR MORE TAXPAYERS MONEY.....if its eco or something of an engineering miracle then fair enough...but otherwise take your b%&7...handout hands somewhere else

[Bossxr8]

Originally Posted by Airmon

I Doubt there are even many talks about it going into production in Aus anytime soon. Holden can't build enough Cruzes as it stands anyway with long waiting lists. Adding a locally produced wagon to the range instead of importing it will just make the wait longer and a huge cost to them.

If that was the case why are they lowering production at the moment. They are not selling as many Cruzes as they thought they would. Commodores neither.

[1TUFFUTE]

from holdens press release they arent lowwering production lines...they are deleting the night shift and moving those people into the day shifts aswell as the others...or something close to those words....

[bobthebilda]

Originally Posted by 1TUFFUTE

from holdens press release they arent lowwering production lines...they are deleting the night shift and moving those people into the day shifts aswell as the others...or something close to those words....

Not too sure what inter galactic trip you and Airmon have just returned from, but yes Holden are decreasing production. Stopping the afternoon shift (they havent done a night shift assembly operation since about 2005), and doing all production on dayshift. And they are doing this to decrease production to 400 a day (8400 a month), because at the moment they are only selling just over 6000 a month (local and exports). If you want a cruze, you can still go out and buy a 2011 model. Even if they made the 200 cruze wagons they might sell a month, they would still have plenty of capacity.

[Joe5619]

Originally Posted by 1TUFFUTE

from holdens press release they arent lowwering production lines...they are deleting the night shift and moving those people into the day shifts aswell as the others...or something close to those words....

You might want to look at the press releases again as that is not right!!

[csv8]

Then, the HSV Cruze..

[BHDOGS]

Today's paper says no cruise wagon production only imported ones case closed

[Brazen]

Originally Posted by BHDOGS

Today's paper says no cruise wagon production only imported ones case closed

To begin with, if it sells well they will probably end up making it here.

[Windsor220]

Cruze will become the new Commodore. If Holden stays in Australia, I'm guessing they will try and build as many types as possible.

[jpd80]

Originally Posted by Windsor220

Cruze will become the new Commodore.

A 20K car replacing a $35k car spells disaster for local production.....

[Windsor220]

Originally Posted by jpd80

A 20K car replacing a $35k car spells disaster for local production.....

Yeah its not exactly a winning scenario for them but its seems like that's where they are going. Commodore to become a bit player.

[johnydep]

Originally Posted by jpd80

A 20K car replacing a $35k car spells disaster for local production.....

Replacing, or just filling a gap?

Once upon a time, Ford and Holden factories produced and sold small and large cars.

Ford had the Falcon and Cortina

Holden the Kingswood and Torana.

Seems like a logical thing to do - produce two different size models, to take advantage of differing sales markets.

Holden do it on the same production line - Commodore and Cruze.

Ford are doing it with the Falcon and Territory. Would have been nice if Ford snared the Focus, before Thailand grabbed it and the $500 million dollar factory upgrade.

[bobthebilda]

Originally Posted by johnydep

Replacing, or just filling a gap?

Once upon a time, Ford and Holden factories produced and sold small and large cars.
Ford had the Falcon and Cortina
Holden the Kingswood and Torana.
Seems like a logical thing to do - produce two different size models, to take advantage of differing sales markets.
Holden do it on the same production line - Commodore and Cruze.
Ford are doing it with the Falcon and Territory. Would have been nice if Ford snared the Focus, before Thailand grabbed it and the $500 million dollar factory upgrade.

It made sense a long long time ago, when local production was protected by 50% plus tarrif rates, but not now. If Holden are feeling the pinch and do raise the base model cruze to $22990 (closer to cost of production), then theres a good chance that it will lose alot more sales if the likes of I30, corolla and mazda 3 maintain pricing. Cruze production only makes sense if its accompanied with lots of government money.

[babyf6]

No offence to whover like it but i would not be caught dead in it, just the styling makes it so horrible.

[babyf6]

Originally Posted by csv8

Then, the HSV Cruze..

Imagine the ad

[1TUFFUTE]

Originally Posted by bobthebilda

Not too sure what inter galactic trip you and Airmon have just returned from, but yes Holden are decreasing production. Stopping the afternoon shift (they havent done a night shift assembly operation since about 2005), and doing all production on dayshift. And they are doing this to decrease production to 400 a day (8400 a month), because at the moment they are only selling just over 6000 a month (local and exports). If you want a cruze, you can still go out and buy a 2011 model. Even if they made the 200 cruze wagons they might sell a month, they would still have plenty of capacity.

in my defence i did say "something like that"...not quote me. And the basic gist was they were deleting a shift without firing people or loosing production time....thats what they were trying to get across....in not so many words.....

[Gobes32]

Originally Posted by bobthebilda

It made sense a long long time ago, when local production was protected by 50% plus tarrif rates, but not now. If Holden are feeling the pinch and do raise the base model cruze to $22990 (closer to cost of production), then theres a good chance that it will lose alot more sales if the likes of I30, corolla and mazda 3 maintain pricing. Cruze production only makes sense if its accompanied with lots of government money.

Would not surprise me if Toyota and Mazda had the capacity to slash Corolla and 3 prices and drive Cruze right out of the market.

[jpd80]

Originally Posted by johnydep

Replacing, or just filling a gap?

Once upon a time, Ford and Holden factories produced and sold small and large cars.

Ford had the Falcon and Cortina

Holden the Kingswood and Torana.

Seems like a logical thing to do - produce two different size models, to take advantage of differing sales markets.

Holden do it on the same production line - Commodore and Cruze.

Ford are doing it with the Falcon and Territory. Would have been nice if Ford snared the Focus, before Thailand grabbed it and the $500 million dollar factory upgrade.

Local manufacturing of vehicles is directly tied to the nett revenue they generate,
Holden cannot afford for Commodore to become a "bit player" otherwise the combined
nett revenue will fall below sustainability.

On the other hand, Ford diversifying Falcon to Territory can sustain one shift and much lower levels,
I wouldn't like to test those boundaries but recent comments suggests that 2010 levels are much
safer than 2011 levels and so Ford is looking to push sales up a bit this year.

[jpd80]

We often talk about how FoA has cut Falcon programs to the bone,
I wonder if the same shock wave isn't reverberating through Holden.

The recent cuts in production would be throwing an icy chill through a
lot of programs that probably seemed viable up until six months ago.

Where Ford made gradual cuts to production, Holden is now slashing,
this is hard to watch and I hope the rumors of more cuts aren't true..

[jpd80]

Originally Posted by Gobes32

Would not surprise me if Toyota and Mazda had the capacity to slash Corolla and 3 prices and drive Cruze right out of the market.

That won't happen but maybe discount prices will make local production tough for Holden...

[Brazen]

Originally Posted by jpd80

That won't happen but maybe discount prices will make local production tough for Holden...

Holden buys components in US dollars from Korea which is making Cruze cheaper to make, also Commodore with American engine and trans. It's just that volume is falling. If Cruze wagon can add 400 a month it takes the some pressure off. The days of exporting for now are over. Domestic volume will be the next emphasis for next 5 years. High Aussie dollar, increasing shipping costs and a vote winning emphasis on car making all combine to make domestic focused vehicles the next big thing.

[Brazen]

Originally Posted by Gobes32

Would not surprise me if Toyota and Mazda had the capacity to slash Corolla and 3 prices and drive Cruze right out of the market.

Nah the yen is becoming expensive against US and other currencies, also tariffs and shipping from japan. They will be better off moving production to Thailand or assembly in Australia with government money. They are finding it hard to compete against Cruze on fleet price, you can get a turbo 1.4 Cruze for the price of a base mazda 3, Corolla is suffering considering it used to outsell number 2 by about 50%. Mazda has been smart getting private buyers, let the others fight over the scraps.

[Airmon]

Originally Posted by Bossxr8

If that was the case why are they lowering production at the moment. They are not selling as many Cruzes as they thought they would. Commodores neither.

They're selling more Cruzes then they expected. Cruze outsold Commodore last V-Facts.
They're only planning to cut 40 cars per day, which will probably be Commodore and Exports due to the high Aussie dollar, I doubt you'll see a cut in Cruze production.

[jpd80]

Originally Posted by Brazen

Holden buys components in US dollars from Korea which is making Cruze cheaper to make, also Commodore with American engine and trans. It's just that volume is falling. If Cruze wagon can add 400 a month it takes the some pressure off. The days of exporting for now are over. Domestic volume will be the next emphasis for next 5 years. High Aussie dollar, increasing shipping costs and a vote winning emphasis on car making all combine to make domestic focused vehicles the next big thing.

It seems like Holden were really stung by the fall in Commodore sales, I have a feeling Commodore and Cruze are now built one to one.

On local production of Cruze, there may be more purchase in importing base model and building high series here
or Holden may feel they need all the volume they can get to stabilize their business plan..

[Bossxr8]

Originally Posted by Airmon

They're selling more Cruzes then they expected. Cruze outsold Commodore last V-Facts.
They're only planning to cut 40 cars per day, which will probably be Commodore and Exports due to the high Aussie dollar, I doubt you'll see a cut in Cruze production.

I actually think they are not selling as many Cruzes as they had anticipated, has nothing to do with it outselling Commodore, as with the drop in large car sales it was just a matter of time. Just because Cruze outsold Commodore does not mean its selling more than they expected, because they expected it to outsell the Commodore eventually anyway as the small car market has moved well past the large car market now.

I meant to say the Cruze hatch has not added to sales they thought it would. They would have predicted higher sales with Cruze hatch but it has really only substituted sedan sales, you can see that its competitors have moved well past Cruze in sales. Holden were expecting the hatch to increase sales a lot and keep it up with the 3 and Corolla, but hasn't happened yet.