Crossover craze hits General Motors

FORCED to rethink its strategy in the face of slowing sales and rising fuel prices, General Motors has announced it will double its number of entries in the fast-growing "crossover" vehicle segment to 14 during the next four years.

The auto giant’s vice-chairman of product development, Bob Lutz, said crossovers would account for more than 2.5 million sales in the US this year, and could grow to 3.5 million units by 2010.

Over this timeframe, GM plans to boost its share from 14.4 per cent to 20 per cent.

GM is developing four- and six-cylinder luxury crossover vehicles and a new family of medium-sized crossovers that will be designed for sale throughout the world.

Expected to include a vehicle for the Saab brand, these mid-size crossovers will be in addition to those already under development for Opel and Holden/Chevrolet, which have been shown publicly in concept form as the Antara GTC and S3X, which will become Holden's local rival for Territory in 2006.

Izusu takes charge

ISUZU Motors Ltd has taken 100 per cent ownership of its truck operations in Australia following its purchase of General Motors’ 40 per cent stake in the company.

The transaction, and therefore actual change in ownership from Isuzu-General Motors to Isuzu, was completed last week and, according to Isuzu, will allow it to work more closely with its Australian subsidiary on sales and new product initiatives.

Formed in 1989, I-GM was a joint-venture company responsible for the distribution and marketing of Isuzu (Holden-badged) light commercial vehicles and 4WDs and Isuzu trucks Down Under.

Holden managed the business until 2001, when responsibility for the LCV business transferred back to Holden, leaving I-GM to concentrate solely on trucks.