Holden Cruze 2016 News

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Ford Falcon, Territory and Holden Cruze lines cease today as auto manufacturing in Australia winds down.

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Holden’s car assembly line in Elizabeth will stay open until late 2017 as planned, but the blue-collar workforce will be trimmed from 1200 to 800.The last small car ever made in Australia, the Holden Cruze, will reach the end of the line in December, axing an estimated 400 jobs in the process.But the Holden factory at Elizabeth on the north-west outskirts of Adelaide will continue to make Commodore sedans, wagons and utes until late 2017, as planned.Production-line workers were told of the widely-expected decision at a meeting at 2:30pm on Friday, at the end of shift.Holden had forecast since 2014 that production of the Cruze would end about a year before the Commodore.The model will be replaced by the Holden Astra, which will be imported from the UK.The company says it made the announcement at least six months ahead so that suppliers had certainty until the end of 2016, and could restructure their business to operate until production of the homegrown Commodore ends in late 2017.Holden Executive Director of Human Resources, Ashley Winnett, said: “Our number one priority is to support our people – this is a difficult time for all those in the Holden family.”Every Holden worker has access to transition services and up to $3000 in approved training, as part of Holden’s $15 million contribution to the Federal Government’s Growth Fund for former factory workers.Holden currently builds about 240 cars per day and the Cruze represents about one-in-three of vehicles made.Further job cuts at local parts suppliers to Holden are expected.However, of all the cars assembled locally, the Cruze had the highest foreign content. About 70 per cent of Cruze parts are sourced from overseas.The relatively low amount of local parts content in the Cruze -- and the declining production volumes -- means its departure is unlikely to affect the continuation of Commodore production until the end of 2017.Ford will be the first of Australia’s three remaining car manufacturers to close its factories.Ford’s Broadmeadows car assembly line on the northern outskirts of Melbourne and the Geelong engine and stamping plant are due to close on October 7.The Ford shutdowns will end 91 years of production in Australia for the US car giant, and end 56 years of car-making in Broadmeadows.Holden will be next to close its car assembly line, in late 2017, followed by Toyota.The Toyota Camry assembly line at Altona, on Melbourne’s western outskirts, will be the first factory Toyota has closed anywhere in the world.Fast facts: Holden CruzeThe Holden Cruze was originally imported from South Korea. But during the Global Financial Crisis in late 2008 and early 2009, a deal was struck between then Prime Minister Kevin Rudd and then Holden boss Mark Reuss to build the Cruze sedan and hatch locally.“This is an epic day," said Mr Reuss at the June 2009 announcement designed to secure Holden’s manufacturing future. "We are safe, we are part of the new GM."Holden had received $149 million from the Rudd Government’s “Green Car Innovation Fund”. The Cruze qualified because it was a fuel-efficient four-cylinder car. The scheme was also used to fund the four-cylinder Ford Falcon, diesel-engined Ford Territory and Toyota Camry hybrid."We're fortunate to have a Government and a Prime Minister that actually cares about manufacturing," Mr Reuss said at the time.The first Holden Cruze went into production alongside the Commodore to help boost output at Elizabeth in late 2011. At the time the Holden factory employed 2300 workers and built 430 cars per day.More than 125,000 locally-made Holden Cruze sedans and hatches have been sold since 2012; the 100,000th was built in November 2014.The first Holden small car to go into production was the Torana, in 1967.The last small car Holden made in Australia prior to the Cruze was the Gemini, in 1987, also made at Elizabeth.

The industry does not know what to make of Gerry Dorizas' sudden departure but time will reveal all.Time will tell us why Gerry Dorizas left the top job at Holden suddenly.In the meantime the dealers that have carried the brand with outdated cars will need to do even more heavy lifting.Mr Dorizas had barely been in the top job at Holden for more than a month when he boldly declared that the once proud brand would return to Number One and topple Toyota by 2020.It was a big call because Holden sales had just hit a 20-year low, and it hadn’t been at the top of the charts for 11 years.Behind the scenes, Mr Dorizas began blaming dealers for the company’s woes.In one of his so-called motivational speeches to the dealer network, he told them to sell more cars. If only it were that simple.The dealers quickly got off-side, but they continued to slave away selling a model line-up that has been left largely unchanged over the past few years.Sure, Holden sales are up 1.3 per cent year-to-date in a market that is down 2 per cent. But most of that growth has been disguised by the Commodore’s bounce back from the previous year’s record low.Holden has a handful of ‘new’ cars coming next year; but they’re simply rebadged versions of selected Opel models that were withdrawn from sale last year after just 11 months. Another monumental General Motors misstep.Holden won’t have any all-new-from-the-ground-up cars until early 2016. That’s when the new Captiva is due to arrive, ahead of the imported version of the second-generation Cruze sedan.In the meantime, Holden dealers will be pushing out the same metal it has been trying to move for the past few years — against competition with newer models and a more diverse range.Holden dealers don’t deserve the blame for the company’s current predicament. They deserve a medal, because without their tireless efforts with an ageing product range Holden would be in much worse shape than it is today.

The much anticipated sibling to the locally-made Cruze hatch and sedan will join the popular line-up early next year delivering a highly specified, flexible and safe, stylish vehicle.Cruze Sportwagon will be available in two models, a CD with the choice of two fuel efficient engines, a 1.8 litre petrol engine or a 2.0 litre turbo diesel, or a premium CDX with a 1.8 litre petrol engine.The entire range boasts generous load space, Bluetooth connectivity with voice recognition, cruise control and iPod integration with steering wheel controls as standard. The versatile Cruze Sportwagon boasts the same safety features and robust body structure that earned the Cruze sedan and hatch a five star safety rating from the Australasian New Car Assessment Program (ANCAP).Safety features include six airbags, rear park assist and electronic stability control including anti-lock braking system and traction control. Prices and full specifications and features will be announced closer to the start of sales. 

Holden boss Mike Devereux this week confirmed the small car - to be built in Adelaide from March - will get an optional 1.4-litre turbocharged petrol engine.  The powerplant is from the Opel "Family Zero" series. One derivative is used in the Chevrolet Volt hybrid. "It's a great engine in terms of economy and performance and it's the first new powertrain we'll be introducing for Cruze," Devereux says.  "We have previously confirmed that both petrol and diesel models will be built at Elizabeth - sedans start in the first quarter and that awesome-looking hatchback in the second half." Mr Devereux says Cruze production was secured for Australia by a $179 million grant from the Federal and South Australian Governments which was in addition to "hundreds of millions more from Holden" to make Australia's only locally-built small car. He says the current Cruze, launched in June last year, "has performed phenomenally well so far.  "It's our second-best seller, it cracked the top-five and outsold established nameplates like Falcon several months this year," Devereux says. "We've sold 26,253 units to November, which is up nearly 20 per cent on last year, and we're forecasting nearly 28,900 (28,848) for the full year." He says making the Cruze in Australia allowed Holden to give people an option to buy a locally-made small car that had been engineered for Australian conditions.  It ensures a more stable workload for our employees and has created new business opportunities for our local suppliers," he says. Holden says the future is rosy. It will add 165 employees to its Elizabeth plant and launch 10 new models - new and refreshed - in the next 18 months. "This year we see a total car market in Australia of 1.034 million," he says.  "Total sales for Holden this year will be around 133,800 - up 12 per cent on last year - which is a pretty solid performance. "We'll finish 2010 with about 12.9 per cent share - on par with last year. The market is good, but it's tough. We're not in the business of chasing market share. "Next year we think the market will grow around 10 per cent - so we're looking at about 1.045 million.  We think that growth will come from new models - including Holden launches like the local Cruze, Captiva and Barina - and good economic conditions."