Holden to remain fair dinkum, mate
BY NEIL MCDONALD | 23rd Feb 2006
At the launch of the new Korean-sourced Barina sedan last week, Mr Batey indicated that the company would remain true to its roots. Asked if the day would come when Korean-made Holdens would outnumber other areas of Holden business – like the Australian-built Commodore – he was strident.
"No. I don’t think so," he said. "The DNA of what we’re doing here in Australia, as I’m learning very quickly, is amazingly strong.
"My job is to grow, protect and build on the Holden brand and I’ve got to tell you that, from a sales and marketing perspective in my 26 years with GM, I’ve never seen better foundations than what I’ve seen here." Mr Batey said that Holden was working within a global company to ensure its Australian requirements were "in" at the engineering, design and validation stages "to make sure that when we deliver the product it meets our customer expectations".
The arrival of the new VE Commodore, which is due around September, would also help rekindle the flame for large cars, he said.
"We are very confident that when we launch our new large car it will bring large-car buyers back," he said. "Extremely confident." Last year, Holden replaced its European-sourced Barina hatchback for a GM Daewoo-built "Barina" hatch (based on the Daewoo Kalos), and introduced the Daewoo-built Viva small car (a rebadged Lacetti).
Holden has dropped the Euro-designed (and Thai-built) Zafira mini-MPV and also intends to axe the Belgian-built Vectra, with the latter likely to be replaced by a Korean-sourced model based on the new Daewoo Tosca (left).
The forthcoming large 4WD based on the S3X concept car and a compact 4WD based on the T2X concept, both shown at this month’s Melbourne International Motor Show, will also be sourced from Korea.
The new Barina hatch and sedan are sourced from GM Daewoo’s Bupyong plant in Korea and will also be built from completely knocked down (CKD) kits in Thailand, China and India.
Analyst Tony Robinson from Melbourne-based independent fleet risk management company Sureplan accepted that Holden’s employee discount move last year and increasing diversity of product were necessary moves to survive in a changing Australian market.
But he said the message from fleets and novated fleet owners was that brand loyalty was dead and motherhood statements were no longer valid.
Buyers were no longer easily wooed by "football, meat pies, kangaroos and Holden cars,"he said.
"One of the things that has suffered most in Australia is the loyalty to a brand. It’s so commercialised these days – it’s ‘commodisation’ of the car market. As a consequence of that, brand loyalty has gone and people are now being educated on pricing and value." Mr Batey said Holden’s diversity of product was good for the brand and a secure footprint for the future.
"The best thing about Holden today, though, is we have never been better positioned to be extremely strong in four or five of the most important segments of the market, whereas 10 years ago perhaps if you asked the consumer ... you have one word to describe Holden, what would it be, probably he’s going to say Commodore," he said.
"Maybe in the future if you asked that question, maybe it’s going to become more difficult, which is positive for us. So we’re well positioned.
"To give you another perspective though, GM Daewoo exports more cars to other parts of General Motors than the rest of General Motors put together..." As a result, the importance of GM Daewoo in the growth of the auto giant in the Asia-Pacific region and around the world was very relevant, he said.
A continuing strong economic outlook has buoyed Mr Batey’s upbeat assessment of the large-car segment.
"The economy will grow this year at around three per cent on the back of continued low inflation and employment, strong household consumption and low interest rates and sustained strong business investment," he said.
"Our economic outlook is really very solid and that’s a good sign for the motor vehicle industry.
Our forecast is again for the market to challenge one million units ... and with petrol pricing still quite high the market will continue to change shape."
Vectra replacement to follow VE Commodore
CONTRARY to earlier reports of a mid-year unveiling, Holden’s successor to the slow-selling ZC Vectra will not be released before the VE Commodore’s expected September debut."I suspect we’ll see Commodore first – it’s more important to us," GM Holden chief Denny Mr Mooney told GoAuto at the Melbourne motor show earlier this month.
Sourced from GM Daewoo in South Korea, the next "Vectra" is expected to debut at the Australian International Motor Show in Sydney in October.
It is unclear whether Holden will continue with the Vectra nameplate for the front-drive, Camry-sized four-door sedan, or use the international moniker Tosca.