Holden Commodore 2008 News

That's the view of General Motors' planner Larry Burns, who is leading the company's switch from petrol to an alternate fuel future. Burns, the vice-president of research and development and strategic planning based in Detroit, was in Australia recently when Carsguide interviewed him about GM's future. He says Australia must end its dependence on imported oil and capitalise on the country's bank of alternative energy sources.Burns says we should start with LPG and then look down the track at everything from compressed natural gas to hydrogen and even solar power.And he talks big about the GM Volt electric car, hydrogen, a nuclear future for motoring and improvements to GM Holden's home-grown Commodore. AUSTRALIA“I definitely would focus on energy diversity, I would ask myself, do I need to be importing any petroleum at all into this country,” he says. “I would look at LPG as a starting point. I think that'sa very exciting opportunity you have here already, there's a distribution for that already and the natural gas is relatively inexpensive and relatively clean.“I would anticipate compressed natural gas down the road and, longer term, I would ... go after solar big time. I do think it's going to be economically viable and then I would look at bio-mass.“And then I would anticipate that fuel cell vehicles and plug-in electrics are going to be very real solutions and set myself up for that.” THE FUTURE“Clearly, the industry is in a transformational period. Fuel, globalisation ... we need to get out in front of that better, as an industry, and we think the key is to focus on efficiency and energy diversity. Efficiency's important because energy supply looks like it's going to run short of energy demand and we think the supply of petroleum is plateauing. But efficiency alone won't solve this challenge.” THE CHALLENGE“Let's say you went to bed and had 900 million vehicles in the world ... all have their efficiency improved 25 per cent — that'd be a miracle. Now you pick your technology: they were all hybridised, they were all converted to diesels, HCCI, or something like that. So you have 25 per cent improvement — how much time have you bought yourself?“If you believe that the global economy is going to grow at 3 or 4 per cent per year, that's a pretty good bet. Energy demand correlates with that at 2 or 3 per cent per annum. So, 10 years from now after that miracle last night, we'll start consuming more petroleum for automotive than we did when we had this miracle happen.” PETROL PRICE CRISIS“I'd like to believe some markets have always had higher fuel prices, so I don't think they necessarily need a wake-up call. I was in Germany about a month ago and diesel fuel was the equivalent of $US8.25 a gallon (about $2.50 per litre). So the wake-up call really is where gasoline is relatively inexpensive, like the US. And it is not just a wake-up call for auto companies, but for consumers political leaders.“Gasoline became very, very inexpensive over an extended period of time and that defined the consumer choice, and the consumer choice tended to be for more power and more size in the vehicle. One of the things I get very concerned about is: `What if petroleum dropped back under $20 a barrel?” THE CHOICES“You have all of these people digging their heels in thinking there is a simple answer and that's the only thing you should invest in, and in fact you have to invest in all of it. Then we get paralysed by that indecisiveness on people thinking it's one answer. We can solve it, but we can't solve it by being paralysed by all these parochial different views, and what's happening is people who tend to like natural gas over gasoline promote that and they overly criticise all the other ones. People who tend to like ethanol overly promote that and they overly criticise all the other ones.” POTENTIAL IN AUSTRALIA“I was fascinated to see how much coal you have and certainly pathways where coal could find its way to automobiles, whether it's through electrically-driven vehicles or creating hydrogen or coal liquid,” he says. “I was intrigued by how much sunshine you have and solar energy continues to look promising longer term. I'm intrigued by how much natural gas you have and the potential for LPG and CNG vehicles and, quite frankly, I'm intrigued by the amount of bio-mass that could exist, both in the form of municipal waste and also plants that we don't need. So you can find a way to reduce the dependence on petroleum by finding pathways for this energy to get to the automobile.” HYDROGEN FUEL“Right now, in the world today, there's enough hydrogen being produced to fuel over 200 million fuel cell vehicles. That's almost a quarter of the cars in the world could be fuelled by hydrogen. What's all that hydrogen being used for? It's used to make fertiliser — one half of it. The other half is used as input making gasoline. By 2012 just the hydrogen used at refineries could fuel 175 million vehicles with fuel cells.” FUTURE FUELS“The sun shines on my roof, I create electricity and I put it in my electric vehicle. The time frame on LPG is right now ... the bio-mass time frame is three to five years. The good news on bio-mass technology is it's already very, very inexpensive to make your car capable of running on E85 and we'll find clever ways with LPG and compressed natural gas to get more cost out as well. I want to emphasise that this is not food-based bio-mass ... it's garbage.” FUTURE CARS“We think the tipping point for fuel-cell vehicles is at the point where we have sufficient scale and sufficient cost and market learning. That could be 2018 to 2020 and you might ask, `Can the world wait that long?'. Well, we're not waiting. We're playing hard on ethanol, we're playing hard on plug-in electrics, we have eight hybrids , and we'll have eight more in the next two years, and we're pushing solutions like CNG and LPG — and that is energy diversity.” NUCLEAR FUTURE“I know nuclear is not necessarily the right thing in Australia but in the US I would build one nuclear plant on a closed military base so it's secure.I'd dedicate it to creating hydrogen ... you can make a lot from a nuclear plant. I'd introduce hydrogen fuel-cell vehicles using that because they're an exciting vehicle customers like and then I'd go to OPEC and say, `Do you want to talk?' ... we don't necessarily have to rely on petroleum any more.”

Instead of going for something wild or wacky - like Utenator or Kangaroo - it has quietly added it to the G8 family of imports with an ST name and badge.It also rejected the sentimental favourite, El Camino, after sifting through 18,000 entries in the 'Tame the Name' contest which followed the unveiling of the Americanised ute in the USA.“Frankly, we were blown away by both the volume and quality of the names that were submitted,” says Craig Bierley, Pontiac's product marketing director for cars and crossovers.“G8 ST was one of the most popular suggestions, plus we noticed a far broader trend toward simple, easy-to-remember names.”The reaction to the naming competition reflects the interest in the Aussie ute, which could become a huge winner as Americans downsize out of larger, gas-guzzler pickups in the Ford F150 class. It also shows the impact the Commodore has had since the start of exports as the Pontiac G8.Pontiac has taken months to announce the results of its name game as it had to clear each possibility for potential trademark use.It hints that El Camino - previously used on a Chevrolet pick-up - was the runner-up, but without admitting it.“We actually thought very long about El Camino. In the end, we felt it was more appropriate to honor the El Camino’s unique place as part of Chevy’s heritage and not use that nameplate on a Pontiac," says Bierley.The G8 ST will not go on sale until late next year, when it will be included in Pontiac's 2010 model lineup.Pontiac says prices and specifications will be confirmed closer to its arrival in showrooms but it will definitely only come with the Commodore's V8 engine, complete with a six-speed automatic gearbox and the Active Fuel Management system which Australians are still waiting to see in their Holdens. 

Every Australian new-car buyer would be hit with a carbon tax based on their car's greenhouse gas emissions under a new proposal from Mercedes-Benz.The luxury brand argues it is time for the Federal government to get serious about CO2 emissions and follow the global move towards emission-based taxation.It would mean a $1250 price rise on the top selling Holden Commodore in the first year and about $750 on a Toyota Corolla.Mercedes put its carbon tax proposal in a submission to the Senate inquiry into the proposed increase in the Luxury Car Tax from 25 to 33 per cent, but argues that the move — which would raise more than the $400 million over-three-years target for the LCT — was not just a counter-proposal to negotiate a re-think on the budget proposal."It's not to give us an advantage. It's based on good public policy,"the managing director of Mercedes-Benz Australia, Horst von Sanden, says."It is time to get everyone thinking about CO2 and exhaust emissions.We have simply moved past the point where we can ignore it. Money is a very good pressure tool and peoeple are not doing enough about it."Certainly, the discusssion about the Luxury Car Tax has given us a bit of a wake-up call, to be honest. There are people who say we should have thought about it a long time ago, but it's a human thing to do one thing at a time."We acknowledge the goverment has the right to look for new revenue streams. But we decided instead of just arguring against the tax we should come up with a new proposal."Most major car brands presented arguments against the LCT increase, and were joined by industry bodies including the Federal Chamber of Automotive Industries.Mercedes-Benz compiled its carbon tax proposal with a staged introduction which would more than offset the potential gains from the LCT. It also believes that the downturn in luxury car sales since the end of June means the proposed increase could easily be wiped out, just as an increase in the 1980s was revenue negative and eventually reversed.Mercedes says the carbon tax, similar to one in Britain, must be introduced to force buyers and carmakers to think green.It believes the threshold should be set at 119 grams of CO2 per kilometre by 114, with a gross polluter level set at 200 grams. Many luxury and performance cars today are at more than 300 grams."Some of the politicians might doubt us at the moment, but it is a genuine approach to finding a solution to the biggest challenge the automotive industry will face for the next 10-15 years," von Sanden said."We have had informal discussions with our colleagues and find a fair bit of support there. Judging from some immediate reactions from the politicians there is a fair bit of interest."Mercedes already offsets the emissions of every car it sells for the first six months by 115 per cent and is pushing hard for greener models in coming years, including a plug-in electric Smart car from 2010.Von Sanden admits the Federal government could easily come back with a double whammy, with both an LCT increase and a new carbon tax, but backs his submission on the green road."Of course, we believe it. We put our name to it. Carping from the sidelines is not very attractive," he says."You can disconnect the discussion, and I think you should. If we stopped all of a sudden on the carbon tax that would be a pretty opportunistic approach."The result of the Senate hearing is expected on August 26 and Mercedes is hoping for a move on a carbon tax by next year."We would basically like to see it starting next year. We made a proposal of phasing out the LCT, and replacing it with the luxurycar(bon) tax," von Sanden says.But he says the impact of the proposed LCT increase had already hit luxury brands."We had a drop in the order intake of nearly 40 per cent since the start of July."You could call it a disaster, but to be honest we didn't see it only in cars above the threshold. It was across the range."There is a concern from the impact of interest rates and concern about the economy. All of us talking about the LCT and its inequity has reminded people there is a luxury car tax."When you put import duty, GST and LCT together it's compounding at the rate of 10 per cent, 10 per cent and 25 per cent. There is a resistance to paying such a high percentage of the purchase price to the government." 

The ageing Australian population is reducing demand for traditional Aussie sixes.Fuel prices have hit hard in the Falcon-Commodore-Aurion class, slashing sales and contributing to demand for LPG conversions, but new research also points to a change in buying patterns.Demand for traditional family cars is falling with younger buyers, according to Roy Morgan Research.It says there is a growing divide between young and old.Its latest research reveals the percentage of 25 to 34-year-olds among people intending to buy a new large car has been in steady decline in the past five years, and now represents only 16 per cent of car-buying `intenders'.The percentage of large-car `intenders' for people over 50 has grown from 32 to 40 per cent during the same period.“Some may consider this shift in age group to be a positive in the context of Australia's ageing population, because there will be more potential buyers in the older age groups, but the bad news for the local manufacturers is that the older owners are hanging on to their cars much longer,” says Sak Ryopponen, of Roy Morgan.“The 65-plus age group are the least likely to have bought their vehicle one year ago and most likely to have bought it nine or more years ago, followed by the 50-64 age group.”Research also shows buyers in the Gen-X age group are being drawn to imported cars.They are also looking much more closely at greener car choices, including diesels.“It would seem that the days of the traditional Falcon versus Kingswood/Commodore families are rapidly becoming folklore rather than fact,” Ryopponen says.“Our research shows professional young urban males in particular are more likely to be opting for the likes of smaller Euro diesels, rather than following their father's brand and model loyalty in the large-car segment. As Australia's population continues to age, the challenge for the local manufacturers is to bring younger buyers back into large cars, otherwise they face a continuing decline of private purchases.”He says changes to powerplants in the locally made cars, with Holden about to introduce cylinder de-activation on the Commodore and Toyota committed to a Camry hybrid from 2010, are a step in the right direction. 

Car sales were at record levels for the first half of the year, but that isn't expected to last.As Ford and GM Holden struggle with their toughest challenges in more than 25 years, there is no sign of any overall slump in new-car showrooms.The Commodore and Falcon are doing it tough, but small-car sales are booming, compact four-wheel drives are going well and there is a growing trend towards work-and-play pickups by Tuppies - or Tradie Urban Professionals.The Tuppie trend is as obvious as the showroom total for the Toyota HiLux, Australia's No.2 seller in the first six months of the year. It even beat the Commodore, though the baby Corolla did best, to record its first half-year term as overall No.1.Toyota continues to power ahead and has experienced the best results in its history, helping to drive a string of records for the overall motor industry."We're up 9.4 per cent for the year. But we always want to do better and while we're running well ahead we're happy," the head of sales and marketing at Toyota Australia, Dave Buttner, says.The overall figures at the half-time break in this year's showroom battle include record sales figures for June, a record for the year so far and a record performance for a financial year of 1,068,301.But things do not look as bright for the second half of the year, even though all industry analysts are forecasting a full-year total of about 1,060,000."There will be a lot of competitive pressures. Prices are likely to stay where they are," Federal Chamber of Automotive Industries chief executive Andrew McKellar says."The June figures need to be seen in a broader context. We have come from a situation where the market was growing at about twice the rate of the national economy ... we have seen growth rates fall from 8.9 per cent to 3.5 per cent this year."This is much more in line with growth in the general economy and a much more sustainable position."So there are plenty of winners, but there are losers, too. Nissan and Honda trail last year's half-yearly totals. They have held their places in the top-10 sales chart but clearly need new models to compete with their rivals, as Honda's impressive effort in June - when it cracked 6000 sales for the first time in a month thanks to the new Accord and Accord Euro - prove.But what can we see in the results, beyond the inevitable stuff from Toyota?New vehicles are still up to 30 per cent less expensive to buy today than they were 15 years ago and strong competition, the growth of turbodiesels, improved safety and equipment levels are driving new buyer inquiry.June had a record 106,541 sales, up 1444, or 1.4 per cent, on the same month last year, and a record for any month in Australian motor-vehicle sales history.Toyota is now more than 60,000 ahead of its nearest rival Holden, with a tally of 127,440 sales.Last month it became the first company in Australia to sell more than 25,000 vehicles in a month when it recorded 25,600 sales.As it did in 2007, the Corolla is storming ahead, outselling the fleet favourite, the Holden Commodore, but it is the HiLux that has surprised pundits.In April the HiLux knocked off the Holden Commodore as the country's best-selling vehicle and end-of-financial-year deals helped push its sales to 4530 last month, with a yearly tally of 22,132.Toyota's success has a lot to do with its market clout and penetration in just about all vehicle segments.It has cars from the economical Yaris to the V8 turbodiesel LandCruiser off-roader and its split strategy of the Camry four-cylinder and Aurion V6 seems to be paying off, even if rivals refer to the Aurion as the Camry V6.Other Toyota strengths are its strong marketing, and knowing its buyers.But with rising fuel prices, tightening credit and interest-rate issues, it is not alone in predicting some softening in the run to December.But Toyota is buoyed by a strong order bank for many of its cars, including the HiLux and Corolla, and analysts say the company's pricepoints and reputation will hold up well against outside issues facing the car industry.The Corolla is the company's hottest property. It became Australia's best-selling car in the first half of the year, the first time Corolla, or any Toyota, has topped the country's new-vehicle sales chart at the half-way point of a year.Australian motorists bought 24,415 Corollas in the first six months of this year - an increase of more than 7.3 per cent on the same period last year.Corolla was the best-selling vehicle last month, with 5023 sales, followed by the HiLux, with 4530.The Holden Commodore was third last month, posting 4274 sales for a six-month total of 23,323 cars - 1092 fewer than Corolla.Yaris, 2770, Aurion, 2552, and Camry, 2261, were among the top 10 sellers last month. Prado, 1749, led the SUV market.Toyota's market share so far this year is 23.5 per cent, a slight gain of 1.3 per cent on the same period last year.Holden's overall share is down 2.1 per cent, which will be worrying the bean-counters.Despite having a strong sedan, ute and long-wheelbase line-up, the company's South Korean strategy has some holes in it.Sales of the Viva sedan and wagon are down more than 14 per cent, and the Barina is struggling.Only the Captiva and Epica seem to be working out.The Captiva has found 5633 buyers this year and even the lukewarm Epica has lifted numbers to 1332, up from 1096 for the same time last year.By contrast Ford's Euro small cars like the Focus and Fiesta have performed well, achieving sales of 8561 and 3866 respectively.Even its new mid-sizer, the Mondeo, has snared 2518, with Ford underestimatingd demand for the turbodiesel model.The late arrival of the new FG Falcon meant that June results of 3483 were about what the company expected.Ford's Broadmeadows factory is ramping up production of the G Series sedans after starting with the base XT model and dealers are reporting strong interest and growing orders for the G Series cars.Luxury-car sales, too, with the impending rise in the luxury-car tax, shot up last month.Audi, BMW and Mercedes-Benz all report strong June sales in a pull-forward of sales before the new tax comes into effect.Mercedes-Benz sold 2054 vehicles, Audi 907 and BMW 2258.The arrival of the new Jaguar XF bolstered Jaguar's June result, with 124 cars sold; and even Land Rover shifted 491 vehicles. REPORT CARDSmall cars GOODCompact 4x4s GOODPick-ups GOODSedans POOR How the makes and models compareTOP 10 MAKES (June)1 Toyota 25,6242 Holden 11,9683 Ford 10,2864 Mazda 75245 Mitsubishi 83366 Nissan 53527 Honda 62178 Hyundai 54479 Subaru 411610 Volkswagen 3305 TOP 10 MAKES (YTD)1 Toyota 127,4402 Holden 67,1233 Ford 54,4694 Mazda 42,4935 Mitsubishi 35,1676 Nissan 30,8007 Honda 30,1688 Hyundai 24,4179 Subaru 20,80610 Volkswagen 16,407 TOP 10 MODELS (June)1 Toyota Corolla 50232 Toyota HiLux 45303 Holden Commodore 42744 Ford Falcon 34825 Mazda3 32866 Toyota Yaris 27707 Mitsubishi Lancer 26678 Honda Civic 26449 Toyota Aurion 255210 Toyota Camry 2261 TOP 10 MODELS (YTD)1 Toyota Corolla 24,4152 Holden Commodore 23,3233 Toyota HiLux 22,1324 Mazda3 17,4585 Ford Falcon 14,7816 Toyota Yaris 13,7047 Toyota Camry 11,7718 Toyota Aurion 11,3879 Honda Civic 10,89710 Mitsubishi Lancer 10,498 who's hotSUZUKIJune was the 19th straight month of cumulative increases for Suzuki, which has cemented a place as one of Australia's fastest-growing brands.A total of 2419 Suzukis were sold last month, making it the best month in the company's history with a 2.2 per cent gain over the previous high-water mark in June last year.Another record result confirms Suzuki is now being considered against the historical volume players in the Australian market, Suzuki Australia general manager Tony Devers says.Like so many others, Suzuki is cashing in on successful new models, including the SX4, though the baby Swift - a former CARSguide Car of the Year - is still the bedrock for the brand. It has also claimed a 21 per cent increase for Grand Vitara, and the tiny Jimny four-wheel drive, which has been relaunched in 2008, is up 35 per cent.Suzuki sold 12,140 vehicles in the first half of the year, an 11.3 per cent increase on last year."With rising petrol prices having a noticeable effect on customer choices, Suzuki is perfectly positioned to offer a range of vehicles offering great fuel economy, superb build quality and terrific value for money," Devers says. MAZDAMazda is well on track for an 80,000-plus year. Better than its most ambitious target.Last month it sold 7524 vehicles, up 8.5 per cent on the same time last year.The Mazda2's tally of 1540 is a record for the nameplate and even the ageing Mazda3 continues to perform well, selling 3284 last month.The Mazda3's year-to-date sales of 17,458 makes it the third best- selling car - not vehicle - in Australia behind the Corolla and Commodore. SUBARUAll-wheel drive continues to be Subaru's trump card.It achieved a record of 4116 vehicles last month, with an overall lift in sales of 6.4 per cent for the year so far.The new-generation Forester was a star performer, with 1668 sold, an increase of 13.2 per cent.Impreza continued its strong start with 1031 sales, up 16.0 per cent. The refreshed Tribeca also performed well, with 161 sales, up 47.5 per cent.Liberty and Outback sales of 788 and 468 respectively contributed to the impressive result. who's notSSANGYONGThis brand is struggling, with sales down 25 per cent this year despite a revamping of its model line-up.A lack of cohesive marketing, low dealer numbers and quirky styling continues to dog the brand. Only 920 have found homes so far this year. SAABWhat can we say?With only two models in the line-up, the 9-3 and 9-5, Saab needs an injection of product right away.It's coming, in the form of a new four-wheel drive and small model but they are some way off.With sales of only 806 so far this year, it makes you wonder why GM Premium Brands bothers with the Swede. RENAULTEven tough sales have improved 2.2 per cent overall this year, the French carmaker's typically arrogant attitude to the Asia-Pacific market is working against it.The new Laguna and Clio sports model give it some hope, but only if the French executives get out of their ivory towers in Paris and come have a look at our market for a better understanding of what it needs to survive and prosper. PEUGEOTThe model changeover from the 307 to the 308 may have upset Peugeot's strong run, but sales are off 17 per cent this year.The 207 is a strong card and once the 308 becomes more widely known for its quality and driving experience we suspect things will pick up.The 407 is in desperate need of some strong marketing. NISSANLook beyond the nameplate and there are some strong individual performers, like the the X-Trail and Navara.But the Tiida still mystifies people, a Pulsar by any other name really. The miniscule Micra is picking up some well-earned praise for its price and packaging, so there is some hope.The Dualis has fallen short of the mark, though, and essentially Nissan still has to climb out from its tag as a four-wheel-drive brand if it wants to improve.Sales have slipped 4.3 per cent this year. LEXUSTreading water a bit with sales up only 0.3 per cent this year, the six-model range is strong on quality but short on driver involvement. The IS and GS are perhaps the exceptions. They are competent, but not engaging cars, and the volume RX series is due for replacement soon. It cannot come soon enough. CITROENAgain, the French! Some perky little performers in the C3 turbodiesel and C4, but it seems Aussie buyers prefer Japanese.Citroen sales are off 13.5 per cent on the same period last year.The Grand Picasso is the only interesting one to watch. ALFA ROMEONothing wrong with the product but others do it better and more aggressively.Alfa importer Ateco Automotive has sold 717 Alfa Romeos this year, down 25 per cent on the same period last year.The arrival of the sexy Mi.To could spur things on for the brand. 

UTES are almost compulsory for Jason Hodges. As resident gardener and landscaper on Better Homes & Gardens a workhorse is his first choice. He says he has always owned and driven utes. Hodges' long-term relationship with utes has gone hand-in-hand with his lifestyle. But he does have others in his life -- a 1967 convertible Mustang and a 1963 two-door Falcon - which come out for special occasions.What was your first car?An HQ Kingswood ute. It was white with a blue tarp. I was 17 and I loved it because it was a ute not a car. The worst thing about it was everyone wanted to borrow it, or borrow you, when they moved house.What do you drive now?A metallic blue Commodore ute. I've had about 12 utes. I've had Holdens, Toyotas and Fords, but nine out of the 12 have been Holdens. I also own a 1967 convertible Wimbledon white Mustang and a 1963 two-door Falcon. I usually drive the Mustang to golf on a Saturday or if I'm quoting for a job. I also take it on dates, if I can get one. I'm not sure if the Mustang impresses on dates. I think it can be too showy, whereas the 1963 Falcon, because it's Australian, is a little more understated.Do you have a favourite drive and who would you take?Up to the Hunter Valley from Sydney. I normally go up there with mates. We have dirt bikes up there so I'm usually go there with a bloke, not a girl.How far would you drive in an average year?A lot. I'd do about 35,000km a year.Do you have a favourite motoring memory?I love road trips, especially up to Nambucca Heads or Crescent Head. I've enjoyed them as a kid and an adult. I drive to Tamworth for the Country Music Festival every year and I sleep in the back of the ute. As I've become more recognised for being on TV, people stop and ask, "Where are you staying?'' And when I tell them, "In my ute'' they look a bit surprised. We usually go to the Olympic town pool for a s- - -, shave and a shower. People don't expect me to do that, but I'm still a lad.What would you buy if money was no object?A 1967 convertible Mustang.What music is playing in your car?I like mellow, chilled-out music like Jack Johnson, Pete Murray, Missy Higgins, Lee Kernaghan or Troy Casser-Daly.How much is too much for a new car?I've never bought a new car, but I don't know how much is too much. If it does the job and it makes you happy, you enjoy it and it de-stresses you when you're in traffic ... you can't put a price on that.What should be done to make driving safer?We should be tested more often, not just when we get our licence. I'm sure I have bad habits after driving for 18 years without anyone testing me.Are you sponsored by a car company?No. But it would be nice.

Unless they conduct major overhauls of their existing models, Australian carmakers will have difficulty meeting Industry Minister Kim Carr's target.

With Commodore sales down 24 per cent this year, Holden is examining ways to sustain Elizabeth production and complement its local and export business.This may mean a small car being built alongside the Commodore and Statesman.GM group vice-president and Asia-Pacific boss Nick Reilly confirms a rethink is happening.“We're certainly looking at offering a different portfolio, which we've already started to do,” he says.Reilly admits that, in the longer term, “one likes to think you're manufacturing to suit the domestic market, and that has clearly changed”.“In my view, that change is not going to be reversed. In fact, it may even go further than it has already. Longer term, I think we do need to consider what we make here.”However, he's cautious about what may eventually be built.“I can tell you, sitting here today, we have no plan to bring in a different model or a different vehicle.”Reilly says Ford Australia's decision to start building the Focus at Broadmeadows from 2011 makes sense “in the way the market has gone”.A decision would be made “in two to three years” about which manufacturing direction Elizabeth would take.“We have to also know what the long-term outlook is for the current products we produce here in our export markets.“Are they going to stay with those products? Are they going to stay with Holden-sourced products? These are the sorts of decisions made globally in GM.“We have to see what we're going to be called on for export business, then build into that the rest of our manufacturing plan.”Reilly says GM-Holden's current export business is strong, and he expects it to remain strong for now, despite the effect on exports of the strong Australian dollar.GM-Holden exports the Commodore and Statesman/Caprice to the Middle East and the US, where the Pontiac G8-badged Commodore sedan is now on sale.Despite the high dollar, Reilly says no export program is in doubt, “but if the Aussie dollar goes up another 25 per cent, I can't tell you what we might have to do”.Reilly says the Elizabeth plant was recognised in GM for its low-cost, low-volume expertise.“I think one of the most significant things about manufacturing here at a profit is it has as much to do with the supply base as it has with us.“I think we know how to make 20,000 or 30,000 or 40,000 vehicles and be quite efficient at Elizabeth.“But you also have to locally source at least 50 or 60 per cent of the vehicle in order to make it locally viable.“So we do need a supply network that can provide competitive quotes on components.“We have good relations with suppliers here, but if they're going to bring in new components and new sources of supply, they have to be competitive enough so they can export as well.“One of the things we're hoping for with the Federal Government automotive industry review is that it's not just a matter of the OEMs, it's very much a matter of the supply base staying competitive.” 

Reilly is in Australia for a series of meetings and had good and bad news when interviewed this week.He said the strength of the Aussie dollar meant local component suppliers were having trouble clinching export orders, something essential if Australia was to keep a viable manufacturing base.Holden's manufacturing plants were working at near-capacity with nearly 50 per cent of production being exported, but component suppliers had to have other outlets if they were to stay profitable.“We need a supply network that can provide us with competitive quotes on components,” he said.Quite a few component suppliers have gone to the wall recently.“Obviously that's a concern. The exchange rate is not helping them. If they are going to be competitive, generally speaking, they will need some export business as well.”He said as far as Australia was concerned the Commodore was here to stay, at least in the short and mid-term. HSV would continue to build big V8 performance cars although there was every chance there would be fewer of them in the future; and he admitted GM had been caught short by Toyota's successful sales push and the market's acceptance of a small hybrid Prius.In GM's case, he said, hybrids would almost certainly be first seen in large cars rather than smaller ones because it was where the biggest fuel and emission savings could be made.He said GM had not been idle when it came to alternative means of vehicle propulsion citing GM hybrid systems in buses and large SUVs, and the fact that the Volt, an all-electric GM car, will go on sale globally in 2010.Hybrids, he said, made sense environmentally but not economically, and he stressed GM was not putting all its eggs in the hybrid basket. Liquefied petroleum gas, compressed natural gas, fuels with 85 per cent ethanol and diesel all had a part to play when it came to alternatives.He said there was every chance a hybrid Commodore would appear at the same time as a diesel-powered version, though neither of those options was likely for a couple of years.He said the market segments in Australia had changed rapidly which had not helped the large car. “We are looking at offering a different portfolio (of vehicles) which we have already started to do. We don't have to change the manufacturing because we are now up to nearly 50 per cent being exported,” he said.His faith in the large car was reinforced by sales figures for Buick.“The growth in top-end large luxury cars in China is huge. We sell, now, more Buicks in China than we do in the US,” he said. “The same in India. But these markets do have segments that are emerging that are low priced. You have to be able to compete . . . and that is a change for GM.” 

A diesel version is also likely while a four-cylinder turbo-charged model was a “sensible suggestion” said Nick Reilly, General Motors Group vice president and president GM Asia Pacific.Mr Reilly said that, like the car industry in general, GM and Holden were keen for the federal government to offer incentives for people to shift to more environmentally-friendly vehicles.“The quickest things we can do are with alternative fuels such as CNG or LPG. Those would be our priorities,” he said.“Diesels we already have in several of our cars in Australia.“We don't yet have a diesel in a Commodore but that will come.”Mr Reilly said GM's strength in hybrids was in larger cars and he expected a hybrid Commodore to be one of the first off the production line.“I would put a time frame on that of probably a couple of years,” he said.Holden's commitment to a hybrid Commodore comes on top of the work Toyota has done on producing a hybrid version of the Camry in Melbourne.Mr Reilly said Holden needed both a diesel powered and a hybrid CommodoreHe said alternative-powered cars would likely be offered in addition to existing petrol-powered models.What do you think about hybrid cars, bio fuels and all things green? Take our survey and have your say!