Holden prepared for life after Commodore

Holden says the first major overhaul of its dealer network in two decades, unprecedented customer incentives and the replacement of its entire model range by 2020 will keep it relevant to Australians after it becomes a full-line importer from 2018.

Speaking at this week's launch of the final homegrown Commodore before Adelaide production ceases in late 2017, Holden sales chief Peter Keley said the company's 230 dealers will take on a radical new look inside and out beginning in 2017 and reiterated plans to release a further 20 new models by 2020 – the same number as Ford, which ends Australian manufacturing in October next year.

"Over the last few years our dealer network has invested close to $200 million in its facilities," he said. "Well guess what? Over the next five years they'll be investing another $200 million in absolutely world-class facilities for customers to come to buy and service their vehicles.

"As part of that we'll be rolling out a completely new dealer image program. That will have the first airing in 2017 and it'll involve a new exterior appearance for our dealers, but more importantly the way we showcase our products and the way customers can interact with our products on the showroom floor. It will be a totally new experience that will be second to none in the industry."

Keley said it was coincidental that Holden's retail rebranding strategy, which will be mandatory for all dealers, will begin the same year it ceases manufacturing.

"The program will be compulsory because we've got to have a consistent image across our network," he said. "The current program has been in place for 20 years and it's time for an update.

"The fact we're closing manufacturing to be honest is coincidental. Holden needs to maintain a fresh and contemporary look in the marketplace. Our current signage program has served us exceptionally well, but it's time to move on."

Keley stopped short of promising a return to market leadership by 2020, as Holden's short-lived former MD so famously did in April 2014, but said Holden had already commenced its sales turnaround from its low of December last year, when its market share slumped to just eight per cent – down from 21.6 per cent in 2002, the last year Holden dominated the market with 178,392 sales.

"When do I predict that Holden will turn the corner from a sales and market share point of view?" he asked. "Well it's already happening. Holden's low point from a market share point of view was eight per cent in December 2014 and ever since then the trend has been growth in market share.

"We haven't been near eight per cent since then and I'm very happy to say we won't be at eight per cent really ever again. The 9.2 per cent we saw in September was just part of a trend we've seen without any major volume launches.

"While I'm not prepared to guarantee we'll see year on year growth every month from now on, I'm going to tell you that I'd be very disappointed in those months that we don't achieve that because if we can achieve growth before the volume products come on board, just watch us as the volume products roll out over the next few years."

Keley said Holden's sales growth in September – which at 9.1 per cent outpaced the overall market at 6.8 per cent – was a sign of things to come from Holden.

"It was great to see some year on year growth, but what was really pleasing was that it was done before we'd really launched any really new volume products. Sure there was a little bit of Astra, Cascada and Insignia there, but it was really built on the momentum we've been trying to generate for some time."

Keley said the Astra coupe, Cascada convertible and Insignia VXR had all out-sold their most direct European competitors in their five months on sale, boding well for Holden's future model range, 30 per cent of which will be sourced from Europe – including the next Commodore.

"They're proof that Australians really understand what Holden's trying to achieve with those European products."

Holden sales have been in steady decline since Toyota took over Australian market leadership in 2003, while Commodore sales have slumped from their high of almost 95,000 in 1998 to less than 28,000 in 2013.

Last year Holden sold just 106,000 vehicles including 30,000 Commodores, accounting for just 28 per cent of sales – down from 45 per cent in 2010 when it was still Australia's favourite car.

But Keley downplayed the importance of Commodore, saying Holden's lack of SUVs played a bigger role in its decline.

"The Commodore has been a reducing part of the Holden range for a little while now," he said. "If you look at where the market was in 2002 – large passenger cars, large SUVs and pick-up 4x4 crew-cabs – the volume of vehicles is the same as it was in 2012.

"What's changed is the mix. People are looking for greater versatility and variety. Holden has probably been a bit underrepresented in the large SUV space. We've got the Captiva which has served us well, but we've missed out on that larger, Prado, Kluger type vehicle. Our future product plans will include that type of vehicle.

"We'll have very competitive vehicles in all those segments to ensure people looking for space and versatility will have plenty of choice within the Holden range. Having said that, while we're not making any announcements about what the next Commodore will be, I'm very excited about driving the next-generation Commodore as well.

"Things will involve, we'll have a competitive range and Holden's sales and market share will continue to grow [but] we've announced no V8," he said.

Keley said new products will be key to Holden's success as an importer, but would not reveal more details of the 24 new or facelifted models Holden promised at the launch of the three European models in June.

The VFII Commodore is number four on the list and Holden has already confirmed the next new model – next January – will be the all-new Spark, which has undergone a comprehensive local chassis tuning program, followed by the new Astra hatch later next year.

Motoring.com.au understands a significant upgrade for the Colorado ute is also coming next year, following by an all-new flagship from Opel and the high-profile "V8 sports car" likely to be the new Corvette supercar.

Holden has ruled out the new-generation Volt plug-in and is yet to reveal its small-car strategy beyond the Astra, including whether the slow-selling Australian-made Cruze will continue until the end of 2017, be replaced earlier or axed altogether.

"It is about the product and you need great product to succeed," said Keley. "VFII really is the best Commodore that we've built to date, but that's just beginning.

"You'll drive the all-new Spark very early in 2016. That car to me really represents what Holden is all about. It has had significant input from our ride and handling team to make sure it performs like a Holden.

"Our all-new five-door Astra is a great looking car that drives great and is well built and we cannot wait to get that car into the market in Australia. So we already have some great proof points of our future product portfolio and that's why we are confident about seeing that continual growth over the next four or five years."

Holden communications director Sean Poppitt also downplayed the importance of the Commodore, saying it will be just one of a number of imported models post-2017.

"It's been an extremely challenging year; there's no ifs and or buts about that. We've got some continuing challenges on the horizon as well," he said candidly.

"VFII is a really exciting car for us. It's the best model we've ever made, but it's just one part of the story.

"Holden is a lot more than the Commodore car company and really in the future needs to become a lot more than the Commodore car company.

"We're going to retain our design and engineering workforce of more than 300 people. What that means is that a lot of the talent that's going to shape the success of the company will be retained.

"It's going to be a very different company but with the Lang Lang proving ground and the retention of the GM Design Studio here in Port Melbourne our cars will continue to have a unique Australian accent and unique Holden DNA, which we think is absolutely critical to our success and a competitive advantage in the market.

"We've continued to shape our product portfolio. We'll get lots of cars from North America, lots of cars from Asia and of course lots of cars from Europe to revamp or refresh every model in the Holden line-up before the end of 2020."

Keley said Holden would soon commence its most ambitious capped-price service offer ever in a bid to reassure customers.

"While it's great to have good products, we also have to ensure we really look after the customer. We have the best and biggest program around lifetime capped-price servicing in the industry and we have the Holden dealer vehicle program.

"We'll also have a new tactical sales event in October and November, offering customers free servicing until 2020 for every Holden – that's five free services. It provides a cost of ownership that's second to none and provides peace of mind."

Speaking at the VFII launch on the eve of the 2015 Bathurst 1000, Holden Executive Director of Marketing and Customer Experience Geraldine Davys said Holden will soon kick-off a V8-focussed VFII marketing campaign for its final Adelaide-made Commodore, dubbed "Hearing is believing" and aimed directly at traditional V8 buyers who account for a third of all Commodore customers – a number that could rise to 50 per cent by the time production ceases.

But she admitted Holden has a lot of work to do to attract new buyers to Holden's new-look imported model range post-2017, including younger buyers and families.

"We've talked about 24 new products in the next five years and certainly I think there's a need to evolve our brand and a need to broaden our range," she said.

"There is no doubt we need to bring a whole new generation back into the Holden brand. Yes, [younger people] are a key part of the strategy.

"However, while the brand has to do a lot of heavy lifting, at the same time we have to ensure we're not alienating what is a core market that we've continued to hold onto over time.

"What you'll see with this campaign, which we starting shooting last Monday, is focussed on our existing customer base.

"They've been loyal to us for a long time, they are very important, but there is no question as we move into the future we need to attract a new audience and that will probably be based on a younger, family kind of audience."