Holden's world view

By ALASTAIR SLOANE

Holden is talking to its General Motors parent about producing the next-generation VE Commodore platform in America to underpin new cars from Buick, Chevrolet and Pontiac.

The deal is the first step towards Holden becoming GM's global development centre for rear-wheel-drives, a responsibility that would extend to having a key role in American vehicle manufacture.

Holden chairman and managing director Peter Hanenberger met with GM vice-chairman Bob Lutz and key production executives in Detroit last week, after the Monaro-based Pontiac GTO was unveiled in the US.

The GTO is being built at Holden's plant in Adelaide and will go on sale in America later this year. Holden will export 18,000 GTOs annually, an initial import quota set by the United Auto Workers union.

Other next-generation Holden models seen as suitable for American production around 2006 and beyond include the Commodore ute as the reborn Chevrolet El Camino and the long-wheelbase Statesman as the Buick Road Master.

Hanenberger is also keen to find a place in the American market for the forthcoming all-wheel-drive, four-door Cross8 ute, but reaction from Lutz and his executives to the vehicle has been low-key. The Cross8 will go on sale in New Zealand later this year.

The VE Commodore platform will be introduced in Australia in 2005 and has been specifically developed for global use to fit rear-drive and all-wheel-drive.

Lutz has talked for some time about exploiting Holden's rear-drive expertise within the GM empire, and the flexible VE platform opens up new possibilities.

At the GTO unveiling he said: "They [Holden] just do probably - from a value standpoint - the world's best rear-wheel-drive car, because they achieve extremely close to the dynamic excellence of a BMW for a far lower cost."

Hanenberger said Holden was looking at export opportunities "to join the list of Australian companies which can truly lay claim to being global businesses".

Holden production at the Adelaide plant would increase from 132,000 vehicles to around 200,000 by 2008. Exports would move from 29,000 in 2001 to an expected 50,000 by 2004 and 70,000 by 2008.

"We need to do this because having a purely domestic focus is not sustainable in the long-term," Hanenberger said.

"We are also setting our sights on new markets to become a global operator in our own right.

" China, Korea, the United Kingdom and Europe are all being considered.

"Our involvement in Daewoo gives us a foot in the Korean door, and there is plenty of interest in long-wheelbase cars to China, perhaps 10,000 a year.

"Again, we need to balance demand expectations against manufacturing capability. Uncontrolled growth would be far more damaging in the longer term than no growth.

"We're competing on the world stage now and we're a dwarf player again. But we're aiming to harness that size as a strength and we believe we're gearing up for the challenge in the right way.

"There is no reason in the future why we cannot become the Volvo of Australia - a global contributor to the industry in niche segments with a strong domestic base."

Rival Ford Australia is also looking at a market for the heavily updated BA Falcon platform in America. Ford HQ in Dearborn, Michigan, approved a "paper study" a couple of months ago into the Falcon's suitability for the US.

Ford president Nick Scheele confirmed the study and said he was cautiously optimistic.

"We are going to take a look and we are in fact going to get several vehicles over here," he said.

The topline BA uses Dearborn's 5.4-litre V8, which triggered American interest.

"For the first time now we've got something that does not have a unique powertrain," said Scheele, referring to Australian-only engines.

The Australian-built GTO, with its 5.7-litre V8 Corvette engine, received an immediate approval rating in America.

Lutz said it was "everything we hoped it would be, and more. This latest GTO will carry on the proud tradition of a legendary line".

American marketing whizz Jim Wangers, who helped to make the original a success, said Holden had done a sensational job.

"The decision not to go retro was a good move. This car is understated and tasteful, yet very capable. It has all the heart and soul of a GTO."

The original GTO inspired the term "muscle car" when it debuted as a high-performance option on the 1964 Pontiac Tempest.

Originally scheduled for only 5000 units, more than 30,000 Tempest GTOs were ordered in 1964 alone. Before the GTO ended its production in 1974, more than 500,000 were sold.