Equinox marks new era for Holden

Holden has launched its Equinox SUV to the local media, just five weeks after the closure of the Elizabeth production plant in South Australia.

Targeting rivals in the medium SUV segment, the new model essentially replaces five-seat Captiva variants and offers leaner-running turbo technology and added safety features for not much more than the entry-level Captiva.

The arrival of Equinox in the local market is the first substantive step in Holden's move away from the brand Australians have known – from a performance car manufacturer based here to a full-line importer that is the local centre of expertise for new marketing initiatives (Maven Gig), telematics (OnStar), accessories and vehicle development.

"So we're now a sales and marketing company; we're also a design and engineering company, and we're evolving into a technology company" said Holden's Managing Director, Mark Bernhard, outlining Holden's new business model during the presentation for the Equinox.

Bernhard revealed that Holden has taken a lead role in development of accessories for the Asia/Pacific region.

"From a Holden perspective, we're already integrated… we're integrated within the region. We're a regional hub for accessories design and engineering. So you see the Colorados in Asia, you see them here; they're the same accessories designed and developed by the team here.

"We're driving the rollout regionally around Maven and other future technologies."

Maven is already profitable for Holden, and the rollout in Brisbane has exceeded expectations, beyond Sydney's take-up rate, which was also beyond Melbourne's.

Bernhard also reiterated Holden is at the forefront of OnStar marketing throughout the region, run by former Holden executive director of sales, Peter Keley, out of the company's head office in Melbourne.

"That's going to be a game changer within the region as well."

The Holden boss went to some lengths to stress that Holden has a lot of "friends" in Detroit supporting Holden from afar, including two former MDs (Mark Reuss and Alan Batey), Megan Stookey in charge of global marketing for Maven, Phil Brook – the marketing manager for Buick – plus powertrain engineer Travis Hester. There is a lot of support for Holden within Detroit, not least of all from Reuss, an American, who has climbed rapidly through the ranks to his current position, President of General Motors North America.

"We've some really great friends in Detroit," Bernhard observed, "which puts us in a great position."

The implication appears to be that Holden has a more cordial relationship with its parent company than Opel did - or perhaps those in positions of power at GM just feel like they understand the Australian market better... because some of them have worked here.

The Holden boss admits that sales and market share for 2017 have not been "where we'd like to be", but "what is undeniable though, is the momentum we are building."

The company posted year on year sales growth in October, and anticipates further sales growth in November and December. Sales will get off to a slow start in 2018, due to the lack of a Commodore in the product range, but the fully-imported, front-wheel drive ZB model will arrive here late in February, but while Bernhard wouldn't offer an opinion on which was more important to the company – a traditional passenger car like Commodore, or an SUV such as the Equinox – he did indicate that Commodore will play a smaller part in the company's overall sales, moving forward. And no longer will Holden be as reliant on just one model as it has been in the past. It's about spreading the eggs across multiple baskets.

"We are no longer the Commodore car company," he said, "nor are we a Colorado company. Buyer habits have changed, and we're continuing to adapt as well."

"Next year we'll have a diversified portfolio; sales will be much more evenly spread across the range."

Holden's sales in 2018 are expected to be composed of light commercial vehicles (30 per cent), passenger vehicles (35 per cent) and SUVs (also 35 per cent), with Holden's passenger-car sales dropping to that percentage, and SUV sales climbing to meet that percentage.

"No longer are our hopes, our successes, our failures pinned on one car line. Colorado needs to perform, Astra needs to perform, Commodore needs to perform and Equinox needs to perform.

"We're confident that each of those products will do that."

Customer retention has improved "over the last few years" and both Holden's purchase satisfaction – up from #7 to #2 – and service satisfaction – up from #14 to #6 – have gained ground as well.

Holden is upgrading the Lang Lang proving ground, with an $8.7 million spend on the emissions laboratory and $7 million for resurfacing the track. And vindicating the faith placed in them, the local R&D staff have scored another win, convincing the leadership of the Equinox engineering project in the USA that the medium SUV needed to have at least the option of the 2.0-litre turbocharged engine.

It was a discussion the Aussies carried through to a successful conclusion, despite the resistance encountered from the Americans, who felt that if you want more power in an SUV, you just buy a bigger SUV. After driving the Equinox with the larger engine, however, the Americans were converted.

The Equinox itself is Holden's own riposte to anyone who says that GM has lost interest in right-hand drive markets. Not only has the Equinox been developed for right-hook nations like Australia, but GM was happy for the Aussies to tailor the underpinnings to suit local roads.

As for that whole 'rebranding' school of thought, Bernhard announced that Holden is undertaking an upgrade of its dealer network around the country. This program will cost at least $150 million, and that basically puts paid to any talk that the company will be rebranded in the foreseeable future.