Hot hatches still in HSV's plans, but don't write-off the V8s

HSV is serious about expanding its hot hatch business. That's the word direct from Managing Director, Scott Grant.

Indeed, despite stalled plans to add a modified version of the Opel Corsa to his company's local range, non-V8 and overseas-built models will play an increasingly important role in HSV's future -- even if the company isn't walking away from V8s just yet.

Though HSV announced an additional limited edition variant earlier this week, the Astra SRi-based VXR is currently HSV's sole imported, non-V8, non-VE/WM-based model. Developed in GM European arm Opel's own performance division, the VXR is sold in the UK as a Vauxhall Astra VXR. Standard Astra models are available locally via Holden dealers.

HSV had sought to add Astra's Corsa stablemate to its line-up (more here), therefore giving it both Light and Small car segment hot hatch entrants. The sticking point is that unlike the Astra, the Corsa is not part of the local Holden line-up.

"The problem with the Corsa is that we haven't been able to overcome the cost of bringing it to market [in our own right] and then supporting it in the marketplace," Grant explained.

"Parts and service, all the technical support and everything from owner's manuals upwards... You name it.

"If we're on our own with that program, then we've got [to support] several million dollars worth of investment into that 'back office' area. It's obviously much easier for us to pick up off the Holden program; as we've done with the Astra-based VXR," Grant said.

Holden has favoured the cheaper, Korean-sourced Barina over the European-built Corsa in the Light car segment. No performance version of the Barina exists.

"We're also looking on a global scale at what they're doing out of the Opel performance centre and out of North American performance divisions to see whether we can look to substitute or introduce further products that are fairly consistent with HSV's sort of look and feel," Grant opines. He concedes, however, it is the next generation of GM-DAT products that will hold the key.

With Holden increasingly tied to the GM-DAT (nee Daewoo) sourced product (think Viva, Epica and Captiva), if HSV is to enter the hatch market in strength, it will need to look towards Korea for the building blocks of future Light, Small and perhaps even Medium car models.

"It's very early days for our access [to the next generation of GM-DAT models], but we understand that the Korean based products will be have completely different look and a completely different powertrain [to the existing ranges].

"Beyond that sort of general development direction, there'll be a lot more involvement from GM generally into the design and development of those products. So we have higher expectations for those products, as does Holden -- but at this point in time we don't have any details," Grant explained.

All this talk of four-cylinder hatches doesn't mean the HSV boss is killing off the locally-built rear-wheel drives just yet, however.

"I think [smaller non-V8 cars] is a key part [of our future]. Having said that, I don't think it means our existing focus on the V8 rear-wheel-drive locally-produced type product will ever go away. But I think we need these kind of [light and small] products to supplement the line-up.

"If V8s became a little bit socially unpopular, or petrol prices kept moving through the roof, or other taxes were implemented, we still don't think the market [for traditional HSV models] will [completely] go away. We think there's a real strong connection of Aussie people, performance cars and rear-wheel drive."

And the market supports Grant's assertion. In an environment where petrol prices have increased substantially and downsizing is a rallying call, HSV has never sold more cars.

"I can't really explain that either, but certainly we had our best year ever in 2007; and combined with Holden, the best V8 year on record.

"Our general sense -- and we don't have any particular number or tipping point in mind -- [is] maybe our market will soften a little bit, but we do think that our buyers are people that really prioritise their car and prioritise their motoring experience and performance.

"If we're true to that with the right sorts of products, I think there'll always be demand," Grant said.

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