Holden considers home-grown 4WD

HOLDEN is considering a dramatic solution to its lack of a compact four-wheel drive competitor: build one itself.

The new car could be approved by the Holden board of directors as part of the overall 4WD program plan within two to three months, according to chairman and managing director Peter Hanenberger.

The compact 4WD would be aimed at the part of the market currently dominated by the Honda CR-V, Toyota RAV4 and Subaru Forester.

Holden is forced into this course of action because there's nothing on the horizon from General Motors divisions or partners such as Isuzu and Suzuki which can be re-badged and sold here, while it is locked out of Subaru technology.

The Holden 4WD system is being developed under the Commodore long wheelbase platform with a wagon expected around 2004, and possibly a ute as well.

The compact plan calls for the 4WD system to be combined with the Commodore short wheelbase platform, clothed in five-door crossover metal and powered by the new HFV6.

It would not be expected until mid-decade when the new generation Commodore platform is due.

"Once you have four-wheel drive you can use it everywhere and that's a decision of the board and marketing, how many derivatives do we do?" Mr Hanenberger said.

He confirmed a compact 4WD is a favoured proposal: "That's what we hope to do." Aside from the valuable local sales boost, building a compact 4WD could provide export opportunities for Holden in other right-hand drive markets, where GM's lack of such a vehicle is making an impact.

The 4WD system is being developed locally and is designed to be easily transferable. Mr Hanenberger said it could exploit electronic aids to replace traditional 4WD componentry.

It is known that Holden has been developing a dynamic stability control system that is expected to debut on the Zafira mini people-mover and go into the VY Commodore.

Such a system could be easily adapted to include the type of hill descent control and electronic diff lock already being used by 4WDs such as the BMW X5.

Mr Hanenberger said finalisation of the 4WD business plan was still a challenge for Holden: "We want it. It's only can we afford it?" "We have a couple of more meetings over the next 60 to 90 days with our board - it will be an Australian decision and then finally we have to go to the Asia-Pacific strategy board, but there is no hassle that we wouldn't get that (approval)." HOLDEN SHOOTS FOR NUMBER ONE
"We should be number one this year by a wide margin," says Holden executive director for sales and marketing Ross McKenzie of the 2001 new vehicle sales race. Holden lost out in 2000 to Toyota after a year-long sales battle.

"I would be very surprised if we're not (number one)," he said.

Mr McKenzie is basing his aggressive stance on the expansion of the Astra range with the arrival of the City, SRi, Coupe and Convertible versions of the smash-hit little car and a sales boost of light commercials and four-wheel drives now that marketing has been taken back in-house from I-GM.

Mr McKenzie is looking to increase Astra sales from just under 20,000 in 2000 to beyond 30,000 in 2001.

Commercials and 4WD sales are forecast to jump from 24,000 to 32,000, mainly thanks to increased Ute and Rodeo sales.

In total, Mr McKenzie is shooting for as much as 22 per cent of the market, which works out at more than 170,000 sales if Holden's new vehicle market forecast of 775,000 cars is accurate.

"Number one is not an end ambition in itself," Mr McKenzie said.

"But it should be the end result of all the things you do right."