SA in bid to build electric Holden Cruze
August 24, 2009 by Matt Brogan
The South Australian government is in the midst of making a pitch to General Motors in the US to have GM Holden build a version of its electric car at Elizabeth, South Australia.
The move to build the Volt, an electric version of the new Holden Cruze, is backed by a federal and state government lobbying campaign, spearheaded yesterday by South Australian Premier Mike Rann at GM’s Detroit headquarters, aimed at generating thousands more jobs in the country’s struggling automotive sector.
Federal Industry Minister Kim Carr, who has been working with the SA Government on the issue, will visit Detroit in October for further talks with GM chief executive Fritz Henderson.
Mr Rann yesterday held an hour-long meeting with Mr Henderson after visiting the GM Volt four-cylinder electric car pre-production plant, where he was taken on a demonstration drive. He also held talks with GM’s chief economist, Mustafa Mohatarem.
“Mr Henderson told me he was strongly committed to the company’s Australian operations and he had great confidence in the company’s Australian management,” Mr Rann said.
“They will be concentrating on the US domestic market at first for the Volt electric car, but he did point out that the Volt and the new Cruze had the same platform.”
Senator Carr was reluctant to comment on the campaign because of the complex commercial considerations involved but did note that the project had scope for several possibilities including petrol, LPG, E85, diesel and electric.
Mr Rann said the Holden Volt, due for introduction in Australia as an imported vehicle in 2012, could have a future in Holden’s expanded operations making small and large cars side by side.
The Premier said the new Holden Cruze had the same architectural base as the Volt so therefore it was technologically possible to have an electric version of the Cruze manufactured on the new production line at Elizabeth.
The Cruze, currently imported into Australia but with other versions to be manufactured here from next year, has sold about 2000 units in its first full month of sales, making it one of the top 10 selling cars in the nation.
GM has a commitment to respond to changing demands in the market and the State Government is contributing $30 million over the next four years, along with $140 million from the Federal Government.
Earlier this month, it was revealed Holden had been given a $200 million lifeline by the Federal Government as it battled the economic meltdown and an alarming sales slump.
GM Holden national media manager Scott Whiffin said the company was delighted Mr Rann had the opportunity to meet Mr Henderson.
With: Adelaide Now
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I don’t see why every one is making a big deal about Holden not being in good shape. They WOULD have made a profit this year appart from the $76 million of one of charges to shut down 4-cylinder production and spin up increased V6 production. Oh and that $200 million is like an over-draft there if you need it.
On to this car . . . if its made on the same platform why doesn’t Holden built the Volt here?
Why not? Anything to keep Australian jobs.
Despite what people think of Holden as I know there are a lot of haters on here (including me recently guilty as charged) this can only mean good things for Holden, the good people of SA and the Aussie economy. I really hope it happens.
Not going to happen, GM are struggling get the car priced under US$40k. For that sort of money in america you get a six cylinder Benz C-class or BMW 3-series.
The Volt will be a massive failure in australia. Who will pay HSV money when you can get a Honda Insight for half the price?
Jtoddy, It all comes down to Marketing.
The Insight has nothing on the Prius for fuel economy, then when you add the Volt into the mix, the fuel savings you will get from it will blow the Insight out of the water.
But I agree, that the money you save on buying a insight in the first place over a Volt will pay for itself.
However see it from this perspective:
There are people out there, quite alot actually, they WANT to spend $60K on a car in the first place.
If you Market the Volt not as a Insight beater, but as a Prius iTech or Merc or BMW Diesel beater for the same asking price, thats when people will come out to it.
Its all about being competitive in the same price market.
What Holden is going to have big issues is, is explaining how this Electric car is different from a Insight and different from a Prius.
It will be like explaing how LCD, Plasma, and OLED TV’s are different to your dumb consumer, that will be the biggest challenge.
From GMs point of view, economically this just wont work. I wish it could though, would be fantastic for SA!
A section of article from cars guide (news ltd papers)
The entry-level Prius is the most expensive at $39,990 but the Golf 103TDI with its DSG auto transmission isn’t that far behind at $35,690. The automatic model of the Mazda3 Maxx is the cheapest at $27,050. (Prices do not include on-road costs).
Toyota claims fuel consumption lows of 3.9 litres/100km but I never saw anything like that in predominantly city and suburban driving, so I’m using my test average of 4.5 l/100km.
To even things up, I’m also using my test results for practically the same five-day city/suburban cycle for the Golf and Mazda3 which are 5.2 l/100km and 9.7 l/100km respectively.
It still looks good for the Prius but there are some small-print items that need to be accounted. For example, Toyota prefers the Prius to use premium petrol that adds about 5c a litre (to $1.20/litre) to the fuel bill.
The Golf runs diesel ($1.25/litre) and the Mazda3 drinks standard unleaded ($1.15/litre). Drive 15,000km a year and the Prius costs $810 in fuel; the Golf is $975; and the Mazda3 is a hefty — well apparently — $1673.
But take purchase prices into account and the numbers crunch over to show the Prius is costing $2.72 per kilometre over a fixed 12-month, 15,000km period. By comparison, the Golf is costing $2.45 a kilometre and the Mazda3 gets that down to $1.91.
some food for thought, why waste your hard earned
Paul,
I’m well aware that it is all about marketing and the green image of the Volt that will ultimately rub off onto the rest of the Holden range.
And also not forgetting that Holden are brilliant at marketing. I know someone who bought a Holden Barina over a Hyundai Getz because they didn’t want a Korean made car, they wanted an Australian car!!!
But simply it is too expensive for the badge. Sure the car will better the fuel efficiency of the Insight, Prius and 320d EfficientDynamics, however those buying a green image don’t really know or care about the fine details. As long as they impress others it doesn’t matter if their car gets 60mpg or 230mpg. You still get the same kudos for driving a green car even if somebody else is driving an even greener car.
Ultimately Holden competes with Toyota and Honda not BMW. Holden’s green car will be seen as too expensive against other’s green cars. For those with plenty of money to spend, badge-snob + green factors are required, meaning Euro diesel or Lexus hybrid.
The Volt will sell in small numbers and only to those who are Holden die-hards. There aren’t enough of them (red inside, green outside, deep pockets) to make Volt a success even for marketing purposes.
Jtoddy I do agree with you on that.
What also needs to be noted is the fact that people are happy to spend 60K+ on a Toyota… A TOYOTA! (Prius iTech)
if people are happy to do that, they might just be happy to spend the same on a Holden.
We also need to see what Honda price their new Hyrbids at in Australia.
Remember it isnt just the Insight thats coming here next year, we have the new Sports Hyrbid the CRZ! now pricing on that one will be interesting too.
What we also need to keep remembering, is the fact that this technology, in the early stages, does not come cheap. This will be GM Groups (Holdens) first proper Electric Car, there will be many more to come (they are already in the design stages of the 2nd and 3rd Generation Volt).
With each passing generation, the prices will plummet. And they will be alot more affordable to your average Australian.
But Early Adopters, need to be there to help GM, Honda, Toyota, etc etc etc to move forward with more money.
GM have also stated they will be selling these cars at a loss! then you need to add on Government subsidies, so these will be cheaper then what they could have otherwise been.
GM is betting (very safe bet) they will make the money back on the 1st generation Volt, with the 2nd and 3rd generation Volt.
Oh, how I hate the Cruzzzzzz……. Oh sorry I fell asleep. The tail-lights look like they are grinning scarily.
jtoddy Says:
August 24th, 2009 at 10:09 am
Not going to happen, GM are struggling get the car priced under US$40k. For that sort of money in america you get a six cylinder Benz C-class or BMW 3-series.
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For $40k USD you are looking at a Merc C350 or a BMW 335i. That is significantly less than what a base model 4 cylinder 3 series or C Class costs here. You would have to be bonkers to buy some cheap quality hybrid car for that price no matter what brand it is.
There is no doubt that cars with architecture similar to the Volt will be the future of the automobile. Whether these cars ultimately get their power from improved internal combustion engines, hydrogen fuel cells or the electricity grid is not yet know.
But one can only wonder how much more money will various Australian governments give out for green window dressing. When will the Australian car industry produce real innovation, local IP or at least some jobs growth?
I fear that the only return of investment that the tax payer will receive is another photo-op for Kim Carr.
Sorry for the rant.
the reason GM wont allow Holden to build this here is because it will be taking jobs off Americans, and Mr Obama has made them top priority. I agree with above comments that if marketed properly any Holden electric car will sell. Just look at the Cruze marketing campaign. Holden sold 200 of them in their first month. Thats more than sportwagon sales for its first month. I really hope Holden build something of quality downunder to raise brand image.
Shak you;re probably right given that the Cruze is built in Lordstown Ohio in the USA.
However its also being built in St Petersburg [Russia]and Bupyeong-gu Incheon [South Korea]
Therefore; if Obamas top priority isto protect US Jobs surely he would make GM cease production of the Cruze in the other Overseas plants; and transfer it to one of the other GM plants throughout the USA that have been/are operating at less than 75% capacity
Obama would have also told GM to scrap the plan to build the Cruze hatchback at Holden in Adelaide next year.
Yet as I have said before given that the Cruze is built in 3 other countries; it would have made more sense for GM to get Holden to build the Insignia instead which is only being built in Russelheim [Germany]
Particularly as they were/are getting rid of Opel – they need a decent Mid size car throughout their range [Buick Chev Cadillac Holden]
I can’t see Holdens making batteries for the cruze. They’ll be imported into Australia, like they import the V8’s. How this is going to create jobs is very sketchy. All it will do is give Australians an opportunity to buy another electric vehicle.
If you want to buy the current Cruze, you can expect delivery maybe a week before christmas 2009.
Doesn’t really matter if holden has to import the batteries.
Add more powertrains to the Cruze line up and you’ll get more interest and sales.
So is it an Australia version of the Volt, or a Electric Cruze, they are two very different things..
I get what you mean tom, the article said both in the same line. Oh yeah wheelnut your probably right but because Holden has direct control over Daewoo they could decide to change production over when they wanted. In korea theres no shortage of Jobs so youd want to bring them here.
I will put my money on the Cruize never being wholly made in Australia. Daewoo already have a much better infrastructure in place. Why would GM invest in making a car they already make cheaper in Korea? Plus almost every thing else with a Lion badge already comes from there.
Did anyone else note the wording in the article?
“The Cruze, currently imported into Australia but with other versions to be manufactured here from next year”
Key note is “Other versions to be manufactured here from next year”
The electric Cruze is a totally different car to the Insight (mild Hybrid) and Prius (Hybrid). The Cruze will able to commute roughly 64km a day on electricity WITHOUT using a drop of petrol.
If you have to commute further a petrol generator will kick in to charge the batteries, so you could drive from Melbourne to Sydney for example.
This technology is incredible complex and much more advanced than the hybrids from Japan which still use a significant amount of petrol in day-day driving. It will be funny to think that little ol’ Australia might have the chance to build one of the most technologically advanced and one of the greenest vehicles on the planet.