GM's Holden to Build New Compact Model Based on Opel Astra & Chevy Cruze

Local design and engineering work on the Australian vehicle will take place at GM Holden's Port Melbourne headquarters in the State of Victoria. The front-wheel drive model will be offered with an array of 4-cylinder direct injected petrol and diesel engines while Holden said that it is also considering a range of alternative fuel or fuel saving technologies including E85, LPG, CNG and start-stop hybrid capability.

Further details about the compact model including its nameplate, design specifications and pricing will be revealed at a later date.

Production of Holden's second carline at the firm's Elizabeth manufacturing facility in South Australia will start in the third quarter of 2010 with support from the Federal and South Australian Governments. According to GM's Australian subsidiary, the program will require 500 to 600 existing employees at Elizabeth and is estimated to provide 500 to 600 local supplier positions.

GM Holden Chairman and Managing Director, Mark Reuss said the announcement provided opportunity to take a leading role in developing alternative fuel and fuel saving technologies in Australia for Australians. Mr Reuss said the program would be a major contributor to the economy, generating an estimated $70 million to $80 million in wages and $30 million in research and development.

"Together with Government, we are extending the scope and consumer appeal of our local manufacturing efforts," Mr Reuss said. "We have been building Holden cars to suit the needs of Australian motorists for 60 years. These plans build on that tradition. We recognise the needs and desires of motorists are evolving with growing concern around environmental factors and shifting consumer sentiment."

"Just as our leading Commodore range will continue to undergo technological development, this new vehicle will cater for growing demand for smaller cars focussed on economy," Mr Reuss added.