The Auto Writer

The rear view of the Holden Cruze sedan looks nice, but this all new model line lacks something that a lot of markets demand -- a hatchback variant.

As General Motors works its way through bankruptcy and restructuring, a number of questions remain unanswered concerning product development and distribution. With Opel about to leave the GM fold and taking with it designers who helped make important new products such as the upcoming Chevrolet Cruze, enthusiasts have to wonder where that will leave the rest of the company.

The Chevrolet Cruze is likely to become the most important new model for GM over the next several years, given its reported 40+ highway mpg, nice looks and high build quality. A lot has been said about the Chevy Volt filling that role but in reality the Volt will be a low production, pricey model that will only sell a few thousand units per month at the most, at least initially. Paying $40,000 for a Chevrolet is nuts unless, of course, that model is a Corvette. Yes, I know about the $7500 federal rebate on the Volt….

Cruze Production: In Progress Around The World

Sharing the same platform with the Volt is the Cruze which is already in production in other markets around the world. Rolled out last October as the Daewoo Lacetti Premiere in South Korea, the Chevrolet Cruze is now on sale in China and should be on sale in Europe later this summer.

This month, the Holden Cruze goes on sale in Australia and New Zealand while a plant in Lordstown, Ohio is slated to begin North American production of the compact Chevy Cruze next April. By the way, the next generation Opel Astra is also built on the Cruze platform and is now available wherever Opels (and Vauxhalls) are sold.

Holden Designers Take Over

Sorely lacking in the Cruze arsenal, at least for those markets which demand one, is a hatchback model. GM poured billions into the initial Cruze sedan but left the hatchback design for a later time. Likely, Opel designers would have handled that job too, but according to Motor Trends that job is now going to Holden, which is GM’s Australian based brand.

Motor Trends says that Holden will invest $600 million to bring the Cruze hatchback to market and will also look to export the car to other markets to fill in holes in GM’s line up. Until recently, Holden was exporting some of their models to the US (Pontiac G8, most recently) but that arrangement dried up. With the chance to design and export the Cruze hatchback, Holden can now ensure that its Elizabeth, South Australia plant is operating at full capacity, cranking out cars for the Pacific Rim as well as the rest of GM’s far flung automotive network.