Holden to build small car

GM Holden will possibly follow Ford down the path of diversifying local production by adding a small car to its local build program in the future.

A decision will be made in the next two to three years on the product mix of vehicles that GM Holden will build in Australia and a car other than the Commodore is likely to be added to the production mix.

In Melbourne for a series of high level meetings with senior Asia Pacific GM executives, GM Group vice president and president GM Asia Pacific, Mr Nick Reilly, told a media briefing that GM Holden could build a smaller cars alongside the Commodore at the company’s production plant at Elizabeth, near Adelaide, in South Australia.

Mr Reilly said GM Holden had come through a particularly tough couple of years as the Australian car market had made an irreversible change away from a predominantly large car market.

“That change has happened and I don’t see it being reversed,” he said, acknowledging, perhaps for the first time publicly, that GM Holden faces a very different future.

Mr Reilly said, “I would like to make that decision in the next two to three years, not really before that because we also have to know what the long term outlook is for our current products, especially those in export markets, are those markets going to stay with those products or not.”

Questioned about how Australian production of a smaller car would fit in with the company’s current policy of building its smaller cars for the region at GM-DAT in South Korea he said there would not be duplication.

© Source: caradvice
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