Holden at crossroads on Commodore cross-over

HOLDEN is pondering a radical change in direction for the next generation VE Commodore wagon due in 2006, by turning it into a multi-purpose vehicle to exploit the worldwide cross-over boom.

Holden chairman and managing director Peter Hanenberger cites the Volvo XC90 soft-roader and the pumped-up Chrysler Pacifica wagon as examples of where the Commodore load hauler might be headed.

But conflicting with this plan is the fact that the standard utilitarian Commodore wagon is worth a significant 18,000-20,000 domestic sales per year and is a key component of Holden's fleet strategy.

Ford Australia is also considering the future of its Falcon post E265 AWD production in 2004. Some media reports have already speculated there will be no traditional Falcon wagon beyond the current generation.

Quite possibly the Commodore wagon may continue in its traditional guise for domestic consumption with the more international taller, shorter cross-over morphing out of Holden's first crack at the sports wagon market with the four-wheel drive wagon due in late 2003.

In terms of expense, having one "super wagon" capable of fulfilling all requirements would be Holden's preferred option, that way minimising development costs and assembly line complications.

But that level of flexibility may simply not be achievable, meaning multiple variants may have to be developed.

"There is still good discussions going on between marketing, engineering and planning - and we have some preliminary meetings of the board on this but we have not reached a conclusion yet," Mr Hanenberger said.

"We are looking at a way to continue with a conventional wagon, or go more to the direction that Volvo is doing, or the Chrysler Pacifica.

"That's what I am talking about and that's the battle we are fighting at the moment."Aiding the possibility of building more variants is that the architecture underpinning VE will be much more flexible and adaptable than the current V/W car platform used for locally built Holdens.

That means increased opportunity for the use of different exteriors - a development policy Holden is already embracing - and a higher degree of interior innovation than we will see in the wagon that comes in 2003.

The other vital ingredient to remember about VE is that it will be designed as a true global car, with the fuel tank located ahead of the rear axle and incorporating the latest international safety and design technology.

That means a cross-over would potentially offer significant export opportunities into a market segment that is rapidly growing worldwide, and is attracting attention from most manufacturers.

"With the volumes we can expect in Australia you couldn't support lots of niche vehicles," said one Holden source.

"But we are hoping not to be restricted to Australianvolumes going forward."

NEW MODEL FLOOD

HOLDEN'S expansion into locally-built four-wheel drive vehicles is just part of another new model flood in 2003 for Australia's sales leader.

The schedule over the next 12 months or so for Holden looks something like this:2002:

• VY Commodore - September
• Combo van - October
• Rodeo light commercial range - December

2003:

• Vectra new generation - first quarter
• Monaro update incorporating VY Commodore changes - first quarter
• Cab-chassis utility - first quarter
• WK Statesman/Caprice - March/April
• Astra variants (CDX and Turbo hatch and convertible) - first half
• 2WD Cross8 crew cab - mid-year
• All-wheel drive wagon - September
• VYII Commodore - third quarter
• 4WD Cross8 crew cab - second half

It is a roll-out that has Holden's executive director sales and marketing Ross McKenzie confident the company will maintain the sales momentum which saw it claim sales leadership last year and continue to stretch that lead in 2002.

In particular, Mr McKenzie is excited about the opportunities offered by the V8 two and four-wheel drive Cross8 crew-cab, which was previewed at this year's Melbourne motor show.

Mr McKenzie also revealed the cab-chassis one-tonner would actually have a 1.25-tonne capability, meaning it can still carry a full one tonne load with a tray, two passengers and a load of fuel on board.