Australian-Built Holden Cruze on its Way

GM decided a while ago to build the Cruze in Australia, not for export but for the local market. After learning some expensive lessons with the Vauxhall Vectra build from 1998 to 2000, the company seems to be ready to take on the challenge. The production will start in the third quarter of 2010.

“Perhaps the most innovative decision we have taken is to produce the Cruze small car here in Adelaide – it’s a bold play to return to small-car production but we know it’s right,” GM HOLDEN chairman and managing director Alan Batey told GoAuto. “Cruze has been an instant hit in Australia as an imported vehicle and its features and fuel economy are a big part of the mix. I can tell you the specifications on the local vehicle are going to be another step up.“

“Small cars have had mixed results for us but we have produced some beauties including Torana and Gemini. The Vectra program in the 1990s gave us valuable learnings and we built the Cruze case on domestic success alone, rather than betting on export markets.” said Alan Batey. “We would certainly love exports but have not staked the program on getting them.”

Holden wants to encourage buyers to choose locally built vehicles. In this matter, the automaker needs more support from the state governments in purchasing Australian-made cars.

“It might surprise you to know that South Australia and Victoria are the only state governments which have so far bought more locally built cars than imported cars this year. Some other jurisdictions are plummeting towards 20 per cent. It’s much the same in local government which surprises and disappoints me when I look at the ‘source local’ demands many of them make,” Mr Batey added.