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Bruce Newton26 Feb 2019
NEWS

Holden returns to its past

In search of a future, struggling GM brand embraces its heritage

Having tried to abandon its Aussie bogan base altogether, Holden says it is now determined to celebrate its local origins as a cornerstone of plans to rebuild its brand and sales.

And while it won’t go full-on flag-waving patriot, it now sees being Australian is a unique asset it should exploit.

Holden had started reconstructing its image in the years leading up to the end of local manufacturing in late 2017.

As it tried to untether itself from the doomed Commodore V8 there was an emphasis on cool – if mystifying – advertising campaigns, threats to its racing commitments, a controversial sponsorship of the Sydney mardi gras and even chat the Lion might be cut from the Holden logo.

But years of declining sales turned into a 32 per cent collapse in 2018, leaving the company floundering in sixth place in the market. As that disaster unfolded there were months of soul searching and a dramatic overhaul of the executive team under new Holden chairman and managing director Dave Buttner.

“The way we have tried to present the Holden master brand to the Australian public has been very inconsistent,” admitted Holden marketing executive director Kristian Aquilina. “People have been left a bit confused as a result.”

But he says there is now a clear picture within the company of what Holden is and how important its heritage is.

“There is only one brand and one company and one dealer network that gets out of bed every morning to make the drive better for all Australians. None of the other global brands share that purpose,” he said.

“We are a domestic automotive brand and the only one born here … that’s what differentiates us from the rest.

“We are transitioning this brand from a car once made in Australia to a brand made of Australia.”

Aquilina admitted that process would be a balancing act, given the diversity of Australians and the environments in which they live.

“What would be an over-reach for Australia would be going out flag-waving and saying ‘hey we are Australian’.

“What people do respond to is when we just be Australian. We don’t need to shout it from the roof-tops.”

Aquilina said the new strategy coincided with a realisation within the company that it was now what’s called a “challenger” brand – one that is neither a market leader or niche entry.

“There have been a lot of disruptors to deal with … and getting to this point has been very painful – no question for us, for our dealers and every passionate Holden person out there.

“But we have been through the most painful bits and once we embrace this new reality that we have got, it is actually a pretty exciting time to be a custodian of such an important brand to this country.”

The ‘heritage’ strategy was laid out last week at a media briefing intended to promote the company’s focus on building its SUV profile in 2019.

It was also the platform for the Buttner to reject reports of a possible sale of the brand by General Motors to UK-based vehicle distributor Inchcape.

Examples of how Holden intends to communicate its ongoing Australian-ness include the humorous style of its latest TV ads including the Colorado Goat spot and its active defence of its reputation on social media.

But Aquilina explained the line-up of models in the range would still be key to Holden’s definition as Australia’s own. The team of engineers who adapt imports to local conditions and the Lang Lang test base were critical to that.

“It’s not necessarily public knowledge but every detail about the cars we’ve been able to put in -- data or in descriptors around what gives them their Aussie Holden flavour,” he said.

“The ride and handling characteristics, steering feels, noise and vibration. What makes them Aussie.

“The engineers have done a great job of translating that to quite an extensive technical and descriptive definition of every aspect of the cars.”

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Written byBruce Newton
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