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Holden's Small Car Renaissance Takes Shape


October 2005
 Filed under: GENERAL MOTORS CORPORATE Car News | GENERAL MOTORS CORPORATE Headlines
Holden has shown the scope of its small car renaissance in 2005 with the launch of the new age Barina and all-new Viva nameplate. Holden has delivered eight new cars to market in the past four months, including two fresh nameplates in the Tigra hardtop convertible and Viva small car. The breadth of car launches across four car lines makes good on Holden’s promise to Australian car buyers that 2005 would be its Year of the Small Car.
GM Holden Chairman and Managing Director, Denny Mooney, said the company introduced such a large number of cars in such short time to build one of the newest and broadest ranges of four-cylinder cars of any manufacturer.

Mr Mooney said Holden had determined to focus on small car strength in 2005, following the renewal of its light truck presence in 2003-2004 and prior to launching an all-new Commodore in 2006.

He said Holden remained Australia ’s largest passenger car brand in 2005 and its small car strategy was designed to build on that leadership.

“We always promised a lot would come in the way of small cars in 2005 and we’re making good on that promise,” Mr Mooney said.

“We have followed through on a strategy which allows us to meet the premium and value ends of the market with equally compelling cars.

“There are very few brands with Holden’s strength and depth of engineering expertise to be able to ensure that these different vehicles all share a common feel and driving experience.

“We believe this is what will set our new small cars apart from their competitors and protect our leadership in the passenger market.

“It is crucial in times of strong market growth to have a broad footprint to meet many different needs and we are well prepared for those conditions.”

Holden’s small car revamp includes the Astra Coupe and Astra Wagon in July, Tigra convertible in September and most recently the Viva sedan, hatch and wagon and Barina hatch in October.

The first new series Astra, the hatch, was launched in September last year, a turbocharged coupe variant will be arriving in 2006 and other variants such as a retractable hardtop convertible are under consideration.

Holden Executive Director Sales and Marketing, Ross McKenzie, said Holden’s four-cylinder focus in 2005 had already borne fruit with Holden light and small car sales up 38 per cent in the year to August.

Mr McKenzie said Holden’s four-cylinder strategy highlighted a growing split between value and premium buyers within the small car market and Holden could participate strongly in both areas.

“There is no question in my mind that these new cars are going to influence the structure of the light and small car market,” Mr McKenzie said.

“Barina will enter what is currently a two-horse race in the light car market while Viva will join Astra, which is our second-strongest seller after Commodore, in the small car segment.

“It means fantastic choice for buyers and a real boost to our desire to be able to meet any need with a Holden vehicle.

“It also means Korean and Japanese brands, taking advantage of exchange rates making it cheap to import their vehicles, will be challenged as we switch to similar sources for some of our small cars.”

“Barina and Viva are sourced from General Motors’ operations in South Korea, where GMDAT is producing four out of every five cars for export markets around the world.

“Astra and Tigra are sourced from Europe, reflecting their place in the upper end of the small car market and ability to compete with virtually any premium small car in the market.”

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