We just want two: hot Opels firmly on HSV agenda

Holden Special Vehicles is zeroing in on adding two standalone high-performance European-built models to its local line-up. Indeed, according to HSV boss Phil Harding the company is actively negotiating on pricing on the two cars -- a naturally aspirated hot hatch and a turbo V6 midsizer.

The models in question are the stove-hot OPC (Opel Performance Centre) variant of the new Insignia (more here), due to be released in Europe in 2009, and a much-flagged addition to the HSV range, the Corsa VXR.

Yesterday in Melbourne, HSV Managing Director Phil Harding confirmed both the Insignia and Corsa were the subject of serious business case examinations. Indeed, he said the negotiations on whether the cars would come Down Under had come down to price.

"We've got to the point where we like the product. We've got to the point where we've understood how much it's going to cost us [to introduce the car into Australia] and we're now trying to get the right price," the HSV boss said.

If Harding's team is successful, the Insignia (more here)and Corsa will be the first products HSV has introduced that do not have corresponding Holden versions on sale Down Under. It's understood Holden will source both its next generation light and medium cars from Korea.

To date HSV has almost exclusively concentrated on Commodore-based product. That trend was bucked in March 2006 when then HSV Marketing Director, Phil Harding, confirmed a rebadged version of the Vauxhall VXR would come Down Under, as the HSV VXR (more here).

Most recently HSV has added a Nurburgring limited edition version of the Astra to its range (more here). Nevertheless, both models were still essentially lightly modified Astras.

The addition of the Corsa (flagged by then HSV boss John Crennan in May 2007) and Insignia will therefore represent a 'step change' for the specialist vehicle manufacturer. In effect, HSV will become an importer/distributor in its own right.

"The challenge obviously is we've got to support the car's complete parts count for spares and servicing -- where as if you're riding the back of Holden, you only have to do the 'incrementals'. It's a bigger issue and decision to make; to actually support the whole product as opposed to the equivalent," Harding explained.

The added infrastructure also means sales volume expectations will change.

"With Astra, which you could say was incremental our business case was based on around 100-150 per year -- and that worked for us. So that number would have to go up to be able to sell the Corsa... In travelling the road trying to sell HSVs [Commodores] into markets I would say there's no point in doing anything unless you can do 300 [Corsas]."

Harding called the business case for Corsa "tough". Though Insignia's financials aren't any easier, he opined, the higher price point of the midsizer delivered HSV a little more leeway. It would also allow the company to add the car to its range at lower sales volume levels.

"We've shown an interest recently on the Corsa VXR, but we would be on our own to introduce that into Australia so the business case is pretty demanding. But as the second iteration of the VXR treatment in Europe it's more of a VXR than Astra," opined Harding.

"As soon as you get in the down and dirty stuff, of Corsas and Astras -- in the price points where you've got a lot of competitive product -- that makes us interrogate the business decision even more because we obviously want to make money out of it."

According to Harding, HSV's Corsa VXR must sell for less than $30,000 to be acceptable to the marketplace. However, in the HSV boss' 'to market' scenario, the Insignia would have a circa $55,000 pricetag.

"That price point is a little more relaxed. It's a really good car, but it should sell for less than a Clubbie [Clubsport R8]... Probably around the mid-$50s."

"We're evaluating with our networks and research at the moment whether there are the customers at that price that will give us the volume... We could live on a lower volume [than Corsa]," he stated.

Though both products of Opel's special vehicles division, Harding says the two models' futures Down Under are not necessarily linked. The decision of whether one, both or none will go on sale in Australia is based purely on their individual business cases, he said.

So should HSV stalwarts be concerned about the small and medium car momentum? Is the Clayton-based operation at risk of watering down its special vehicle ethos? Harding's message is clear.

"We keep reminding ourselves of our brand pillars which are: performance; driver enjoyment; and 'unique HSV design'...

"That's because when you bring something like Astra VXR into the market, you say 'should we put the HSV brand on that car'? In our meetings it [the new product] has to put a tick in all those three boxes.

"You take any one of those pillars away and we would not put a HSV badge on the vehicle," Harding explained.