Holden's 'own' new small car

Australia's own small car was unveiled this week at Holden's Elizabeth Plant in South Australia.

The Cruze heralds a new era for Holden, according to company execs. After several years selling Australia's favourite large car, the company wants to exploit a shift in buyer requirements with the new small hatch.

It's a big departure from the large car brief the company has continually tapped, with only short-term ventures in other segments apart from import of vehicles to suit.

The last time Holden's assembly lines were assigned to a model other than Commodore was the last-sold mid-size Vectra offering, circa 2000.

Holden's latest endeavour stands to do better, however, due to timing. Buyers are downsizing and are offered (and generally opting for) more efficient options -- Holden claims the Cruze range hosts the most efficient home-grown vehicle in the 2.0-litre diesel model, rated at 5.6L/100km.

The small car segment remains healthy with several importers offering sharply priced, popular models: Mazda3, Ford Focus and Volkswagen Golf currently enjoy strong sales. With exception of the Golf, the main players have a combined small sedan and hatch lineup.

GM-H's managing director Mike Devereux admits Holden's effort in the small car segment with Cruze has so far been hampered by the lack of a hatch model. He's also quick to point out the Cruze's success since its release, despite only in sedan form.

"The vehicle segment we're now launching into is the biggest in the country. We already have a top-ten vehicle [in sales] and we think we have a top-five vehicle when we get the hatch," Devereux told the Carsales Network.

"We've been duking it out in a segment that's 50 per cent hatch and we haven't had one so it's quite remarkable."

The significance of today's unveiling was not lost on Holden workers, union representatives or politicians.

Recalling Prime Minister J.B Chifley's involvement in the release of Australia's "Own Car" in 1948, PM Julia Gillard was in attendance at Holden's Elizabeth plant Monday morning to drive the new hatch "off the line".

"Chifley wasn't just building a car; he was building a nation," said Ms Gillard.

The government's multi-million dollar tip-in to Holden and its Cruze was "an investment, not a subsidy" she added. Australia's GDP incorporates 9 per cent contribution from the manufacturing sector; employing around one million people with approximately 60,000 in or involved with the automotive industry, according to Gillard.

Local manufacture of the Cruze hatch is expected to "fill the hole" left in the company's production capability after the Pontiac G8 contract was dropped.

Devereux says the Cruze hatch designers and planners "worked hard to improve on the current model by tailoring the Cruze to better meet the needs of Australian motorists".

The Series II update brings a restyle front and rear and uprated engine offerings including the aforementioned diesel and a 1.4-litre turbo petrol engine. The 1.4 models are available in SRi or SRi-V specification with more equipment including sports-styled 17-inch alloys, extra chrome (door handles), and leather trim (for SRi-V, pictured) above the CDX spec.

Holden has scheduled the launch of the Cruze hatch for October. Visit the Carsales Network again for our drive review.

Holden Cruze pricing
CD 1.8L Petrol $20,990
CD 1.4iTi $22,240
CD Diesel $24,990
CDX 1.8L Petrol $24,490
CDX Diesel $28,490
SRi 1.4iTi $24,490
SRi V 1.4iTi $27,990

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