Oz Report: Ford, GM Holden Big Cars Gone by 2017

Australia's iconic locally built large cars are almost certain to be phased out within months of each other at the end of 2016, News Ltd. says.

The Australian media conglomerate’s automotive website says the halt to production of the Ford Falcon and Holden Commodore will see the end of a battle that has lasted more than half a century.

It says GM Holden inadvertently confirmed the Commodore’s run is due to come to an end in an interview with Chairman and Managing Director Mike Devereux at the North American International Motor Show in Detroit earlier this month.

“(The) VF (Commodore) will run through to the end of 2016,” Devereux is quoted as saying in an interview with Australian journalists. “We have a current plan to put a second (vehicle type) into the plant before 2017.”

News Ltd. reports GM Holden has plans to build a midsize, 4-cyl. front-wheel-drive car alongside the next-generation Holden Cruze starting in 2017. But given the continuing strong growth in sales of SUVs, which now are Australia’s second-biggest market, the auto maker says it may re-evaluate its position.

“We have a plan that we signed with the government of Australia that does define two architectures,” Devereux says. “Could we change the second one if things continue to change? Yes, we could.

“VF will run into 2016, and if I had my (choice), I wouldn’t want anyone knowing or having an inkling over what that second architecture was until almost the end of VF production.

“If we did change what we’re going to build, the only reason we’d be changing it is because we thought we could (sell) more,” he adds.

The General Motors subsidiary negotiated a A$275 million ($289.9 million) co-investment package with the Australian and South Australian governments last April that would see the auto maker producing cars in the country until at least 2022.

As part of the pact, GM Holden will invest A$1 billion ($1.05 billion) in a next-generation vehicle program that includes local production of two all-new models.

“We’re taking a look at and making sure we don’t make the wrong decision,” Devereux says. “If you asked me a year ago if SUVs would go up 27%, I would have been surprised by that level of growth. But the challenge with an SUV is that there are so many of them.”

He says GM Holden has to choose two future products that are in the top 10 of sales. “There isn’t any room to pick an entry that isn’t a top-selling, well-loved vehicle in Australia.”

Ford, meanwhile, has said for some time the future of the Falcon and its Australian manufacturing operation are not guaranteed beyond 2016.

News Ltd. says the auto maker has all but run out of options because its small car, SUV and pickup for Australia’s three biggest market segments come from factories in nearby Thailand.

The newspaper group says another type of locally made Ford vehicle that could be exported is highly unlikely, given the strength of the Australian dollar.

Ford Australia’s output last year was the lowest since its manufacturing plant opened in 1960, the report says. Parts suppliers believe the auto maker will close the plant at the end of 2016 because they have not been asked for price quotes on future models.