Not too long ago, we heard news that Holden would cease producing cars in Australia by 2017. While that seemed like the death knell to some, it didn’t mean the brand was going away. If anything, Holden is planning a comeback of sorts. After having its market share chipped away by the likes of Toyota, Holden chairman and managing director Gerry Dorizas is quoted as saying the company going to be Australia’s #1 brand by 2020.
“The strategy or the point where we want to go is to go back to number one. In a boxing match there’s 12 rounds … I think we’ve gone through the eighth round. There’s still some rounds to go, but we’ll be back.”
Fourteen years ago, Holden had a 25 percent market share, but today the brand is struggling to reach 10 percent. A lot of this has to do with shifting demand to smaller vehicles and SUVs, according to Drive.com.au. In comparison, Toyota’s is currently just under 19 percent, but it has been as high as 22.
“The market shares are going to start levelling out,” Dorizas said. “I don’t see that we’re going to be 20 percent … I believe that it will be 15 percent one brand, 14 percent the other, so everything will come closer together.”
Dorizas realizes that the key to increasing sales is for Holden to adjust its product line, especially for younger consumers, and a “more focused dealer network.” He said, “Of course, we need the product strategy which is being deployed. We need the focus, together with the network, we need our focus as well. We have to refocus, it’s going to take time, it’s going to take a lot of work. I believe the notion of ‘no worries mate’ is not the identification of how we work. We will work hard, and we need to get the credibility back.”
He also said that the demise of Holden’s manufacturing in Australia would not hold it back. “We have always been an Australian brand, we will always be historically an Australian brand. The experience of the customer makes a brand, the correct product within the segments make the brand and also the best partners [dealers] … make the brand. In Australia Holden is Holden, so there is history behind it … we will come back.”
Comments
THIS GUY IS A MORON!!! Holden was number one because of it’s Australian cars and not imports!!! People bought imported Holdens because they thought they were Australian!!!
He also expects to do this just 3 years after manufacturing and engineering are gone!
I agree it does sound a bit much, and I do not know the market there.
When will all manufacturers sell only imported vehicles?
Per the article it says they did not have all the segments covered, especially the small car and I would guess small CUV’s which per the article is the major part of the market. Is this true? Has Holden not had competitive small cars and CUV’s?
If not and they do start entering the “hot” segments they have been missing, it seems to me a couple points of market share could be taken back from the other manufacturers.
Toyota will always be no.1 – they have every segment covered, EVERY. Holden has Barina (Spark) Barina (Sonic) and Cruze. Trax just launched and Captiva 5 has been here a while. Out of all of them, only Cruze sells well and why is that? Because it is Australian made. Cruze series 1, which was imported while the Holden plant was tooled for production, sold terribly. None of the above sell good either. There are just way better options.
Holden fans aren’t too happy over these comments and feel insulted, many complaining or laughing at the gm of Holden via social media. Should have put either an Aussie or a GM executive working at Holden in charge, at least they aren’t as stupid as this guy.
ABSOLUTELY NO CHANCE – AT ALL !
This guy must think we are a bunch of muppets. Fair dinkum, I have not heard so much hot air since Kevin Rudd was Prime Minister. In my opinion, until Holden shows some loyalty and respect to its customers, market share will continue to decline. As a personal example, I recently took my SS for its 2nd service. I had to take it back three times, due to stupid mistakes by the dealer technician. I contacted both the dealer and GMH HQ advising them of my dissatisfaction. They could not give a stuff was their collective responses!! I just ordered a new VF for work. It is going to take 3 months before I get it. It will be my last Aussie built car, and based on the current lacklustre, non Commodore range, more than likely my last GM product for some time. If GM keeps serving up inferior product, history will be the judge and Holden a distance memory in the Australian consumers mind. Lift your game GM and get a grip on reality!!
Funny how I get thumbed down for putting out the truth
I agree that to take Toyota in Australia would be a tall task with their sales nearly twice #2 Holden.
But I see that they could gain some ground and shore up the number 2 spot easily. They have a good hold at number two and gaining ground is realistic as I see GM delivering many of the products that a small market like Australia could not support on their own.
With new product from Buick/Opel and other models that would do well like the new Camaro and some of the Cadillac they will increase share. The growing mid size pick up I think could use a boost with the new improved version coming to America. The greatest advantage Toyota has is their small trucks as they are one of the top sellers in the country.
If GM can cut into that they can gain some market share.
I know that they like their Utes there but Toyota still sells more trucks there than GM sold Utes.
I think some of the new products that will be there will shock some folks as they will get the cars they could only read about in the past.
There is more to this market than a RWD sedan.
The real key will be for the new Cruze to compete with the Mazda 3. I am not sure what to expect with the new Cruze but it will be key down under since it is the top seller.
The Cruze won’t sell anywhere near what it did as the Aussie made one. The Aussie one has local engineering along with manufacturing keeping it in the top sales despite being ancient in design and having the interior quality of a prison. Local manufacturing made it a top seller when it was relatively modern and despite terrible Korean engineering and material quality.
As for Colorado, we get the global version. It has a terrible interior and boring design compared to the North American one. Toyota Hilux sells well because it is the king of reliability in the segment and looks decent. The Ford Ranger is a close second because it has the best looks and was designed and engineered here by Ford AU.
Holden can not hang on to no.2. How far it will drop depends on whether we get Opels (drop a few places) or Korean crap (drop way down)
Matt it is time you accept the fact more than a Australian can design a car or truck. Also you need to understand that more than Australia can build a car and truck.
The folks there for such a small market have done a good job but the cost to support such a small market is much too high for the return.
I can see the North American Colorado coming there soon as the next gen for your market.
You also have to get over the Korean prejudice as they are building cars as good as many makers now. I hate to say it but it is true. Also their stylist has taken over in many models including the present Camaro and Corvette were Korean.
You can say what you want about your imports but many of them are your best sellers and the people in your country are buying them and even made one number one.
The fact is in the global market the cars and trucks being built can be designed, styled and built anywhere. Most design centers are very talented and the staffs are moved around to nearly each one to get a better feel for the markets. Sorry you have Americans and Koreans working there and we even have Aussies here working with Koreans in Detroit and they all have a few Germans.
Time to grow up and deal with the way things are. You can make all sorts of claims and lose what little credibility you have left or you can grasp reality.
The fact is you will be getting some very good cars in spite of your feelings and a more diverse product line than Holden could ever offer on their own.
We have gone through the same thing here in America a while back and we are still here and we now have cars that are world class to buy. I never though there would be a Camaro that could out lap a Lamborghini at a track but it will. I never though a Corvette would do what it can today. Who ever though a simple sport model of a Cadillac is claimed to be more fun t drive than a BMW? We would never have gotten these without global design.
While you may not like the Cruze it is a very good seller every where else and is the second best selling Holden. The next one we still need to see but I have hopes they have taken it to the next level since the one we have now was really a pre GM bail out design. I am expecting the refinement to be taken to the next level.
Matt I do not want you to take this as an attack but you need to grasp the realties of what is really going on globally. Companies are working as one now not as a group of separate companies. It is either a global market for all MFG or they just stop selling down under. At one time I think you market was the 10th largest and it has dropped much from that high. At the rate it is going I can see even some automakers even leaving your market at is not worth the cost to even import if they do not turn the numbers.
I see a lot of things here I have not liked too but you have to look at the big picture and have a full understanding what all it at stake.
Scott, I suggest you check some of the Holden Korean range reviews by our motoring critics. They do not come out very well. As an example, the Bu has been belted in the press as a very ordinary car compared to the other mid range vehicles. Also the Australian public is not that enamoured with the Korean product.
GM has some way to go to win back public confidence. Unlike Ford and Toyota, GMH was first to manufacture here and become the public champion for many decades. Time will tell what the future for GMH will be, but please give me US or Europe product over the lame Korean range!!
In summing up the posts to date, GMH supporters are still smarting from the recent announcements. Holden is really no longer an Australian icon and that wound will take some time to heal.
We will never get the NA Colorado even if we deserve it, it would be too expensive for GM to do. The next Cruze will flop unless it is manufactured here for the final few years of local manufacturing for reasons I have already stated.
Again you just do not get it. Australians have not special skill to build cars that no one else has. If anything your resources are even more limited do to the small market.
If you guys has something special there all the Mfg would not be leaving.
GM has a lot of confidence building to do globally. That is not a Australia issue but a global issue.
We get some of the Korean cars here too in the Spark and Encore and there are no issues here with either. The Spark is what it is a cheap car and the Encore has turned into a very popular and reliable car here.
We see no issues with any of the Korean cars here. Generally they are the smaller cheaper models and while not the fanciest they run and are reliable as anything else here.
Generally you get what you pay for,
I just dumped the cheap OE Handkook tires off of my GMC. They were crap not because they were Korean but they were crap because they were a cheap OE tire.
I am not defending the Koreans but the assembly process is the same no matter if it is Korea, Germany, Mexico, South Africa or the United States. The process and line is designed the same. The only variables are generally paint shops depending on the rules and regulations of that country as to how new and difficult it is to paint. You may also have a few more auto welders in a newer shop. But most are up to date anymore.
The Cruze is a lower price compact car and is what it is. If you do not like it that is fine but it is about what it is and not where it is built that is the issue, it is just not a car you like.
The 2.0 Turbo in my daily driver was built here in the states but the last year of my model they came from Germany. You know what? The engines are identical one is no different than the other. Why because they are built to the same spec.
Plants have no idea of where they are and the process can be handled buy any race. I believe you are just mad at Korea for taking your MFG from you. We had the same thing here for year too when we lost many jobs over seas.
Scott, you need to be more to the point. I believe that the next Holdens will be based on the OPEL range (Buick in the USA and China – where GM shifted 1million of them last year). Having said that the Commodore and Falcon were and are very good cars and punch well above their weight ($$$). Toyota and Nissan offerings are poor substitutes. Holden (GM Management USA???) broke things when Commodores kept growing in size. No-one have ever explained why a commodore needed to be that much larger then a BMW5 or Merc E class (or Passat / Audi 6). And then there’s the snob factor – ASPIRING australians want to drive Euro imports – and there is very little that one can do to counter the snob factor – it doesn’t matter that OPEL gets better reliance results in Europe or that Ford often out perform the Germans in the USA for Faults
It is going to be difficult for GM. Car brands are a bit like sporting teams at times. When something like what has happened happens they are going to lose fans. Have you even had a major sporting team relocate to another state in the US? Reminds me of the Swans football team here in Aus. I wasn’t even born at the time and I’m not from the East Coast so I’m not 100% sure what went on, but I have a fair idea that they lost a lot of their original supporter base in Melbourne and I know it took them a long time to build up a new supporter base to a decent level in Sydney. GM can expect the same.
GM are just going to have to keep working on their products to ensure they are competitive. If they can make their bread and butter models competitive and bring in some decent hero models to draw people to the brand (Camaro, Corvette, future Alpha RWD range, they could easily get a few thousand half-ton truck sales a year if they can get a decent smaller diesel engine like RAM have) they might just have a chance of keeping number two.
Scott, you don’t get!
It is not about quality, it is about pride and morals. Aussie buy Aussie made not just because of quality assurance but also because they know they are supporting employment etc. Why is Chrysler advertising the fact they make cars in america? The Cruze Series 2 meant Aussies who want to buy Australian didn’t just have to buy a medium size car, large cars and a medium SUV.
I was just at my local dealer an hour ago and was talking to a sales guy. He said “all the cars they offer are dead in sales”. Only the Captiva 7, Trax, Cruze and Zeta platform cars were selling to a sufficient degree.
And that is why a imported Mazda 3 is your number one selling car?
The buy America thing here only works with a small part of the buyers anymore as they still flock to the imports and most have no idea where they are made nor care. I see the same thing happening there.
Once GM closed up and Toyota leaves they all are going to be imported anyways.
Ford has not closed their doors when they moved production.
Like I have said We here in America have all been through what you are just starting to go through. As you can see many have already changed their minds and many more will as time goes on. They are not going to walk.
I think when GM brings in product your market could not have before or support on their own many will change their tunes. That is what happened here.
Years ago we would never have sold a Australian designed with Detroit help built in Canada Camaro and today people buy them and have no clue or care. Even moving it back to the states will make little difference as the car is what people buy not the location of the plant anymore.
Probably because the Mazda 3 is the better car. GM created a cheap feeling, terrible handling car. Holden managed to make it exciting with SRi and SRi-V as well as the sportier design and the hatchback. Holden was then able to fixed the handling with the MY14 update but by then it was too late and the reputation was tainted. With the news of manufacturing going, many have felt they don’t need to buy the Cruze now and sales dropped, it fell from #4 to #10. It is still hanging on because it is still manufactured here. Because you didn’t lose your industry, people are easily fooled by the Camaro, GTO, G8 and SS as being all American but ANY Holden product from 2018 onwards will never be seen by the general public as being Australian. Unlike Ford Au, GM can’t use the designed and engineered tag, just designed – but even then people here are smart enough to know there is still manufacturing and engineering origins to consider. With the Ford Ranger and the SUV twin to follow, Aussies at least see them as Australian cars manufactured overseas but that will not be the case with any future GM products.
GM will sell a few SS’s and a couple of Camaro’s here because of the strong love for high powered RWD’s but Holden will never be in the top 5 again. Ford will sell a few Mustangs, a heap of Rangers and a fair few Focus’ but it will never be in the top 5 again either. I think they are 6th at the moment.
Currently, top 4 stands as:
1. Toyota
2. Holden
3. Mazda
4. Hyundai
I predict in 2020:
1. Mazda
2. Toyota
3. Hyundai
4. Nissan or VW
I think you will see Holden holdin’ its own in the top 3. Ford seem to have deserted Australia
MAtt
I think in 5 years things will be much better than you think in terms where GM is at. The market there will have sailed for a while and the cars we have here in some model closer to that your cars are. How many Asian RWD do you have?
Also you can not fool us on the other cars while part of their content may be a little different the cars them selves here are selling well. Hell the Cruze we have is a old and selling in numbers greater than all Holden sales combine. Now this is also going hand in hand with great review’s by many in the non pro GM media here. too.
We too thought back in the 1980’s when we had a Chevy Citation and Corvettes with only 180 HP the end had come and we had nothing to look forward too. Out best selling cars were Honda Civics and Chrysler mini vans. Today it is a expensive but wonderful market to.
Hell my little HHR SS 2.0 Turbo 4 cylinder has 300 HP and it is my daily beater here to drive to work. It was 20 years ago a Corvette could not make that power. Add to it the little SS will drive circles around many cars with GM Performance Divisions Tuned suspension on it. I as never an HHR fan but when I drove it I was sold and today I know what is possible.
The fact is no major MFG will build cars there and I feel for you. But he truth is you will have many good solid amazing cars that would have never been sent there if you had your own industry.
Like I have been saying we here in America and been there and seen it before. Think of this as not the end but a new beginning and with it the things you could never have before.