Holden's Exporting

A review from an American motor magazine mentions the Pontiac G8 (nee Holden Commodore) as "The BMW that Pontiac always wanted to build." Nice praise for Holden's design and manufacturing quality.

Ultimately though local manufacturing, and maybe even engineering, is dependent upon Australia feeding a niche requirement that can be exported as a niche domain. Otherwise car manufacturing will only exist in Australia with government subsidies.

The days of manufacturing providing secure and well paying jobs are gone. Holden is more an engineering division in GM now and occupying a similar service based model as Lotus does. The maintenance of those engineering jobs probably require Australia to demand niche car platforms like the mid-sized RWD V8 platform (Zeta) or a smaller RWD platforms (Torana).

Ford Australia is toast. They will most likely become a successful import company like Toyota, Honda and other are. Politicians need to stop supporting car manufacturing and let the market decide if it is feasible or not.

Pontiac G8 from jalopnik's photostream

Via Kicking Tire's movers and losers, the Pontiac G8 has been sitting on lots for 16 days; tieing it with the Toyota Camry Hybrid and only the Toyota Prius beating it with 15 days spent on the lot. As Kicking Tire's notes the Pontiac G8 is still new to the market having only been on sale for three months in the US.

More July 2009, Commodore coming to the US as a Chevrolet with the death of Pontiac.
ranomatic: Interesting. After my TDI stopped on the freeway two times in a week, I spent some time looking around for a new car. My brother has a G6 and my sister has a Vibe, so they both wanted me to look at Pontiacs. The G6 isn't too bad, but Saturn has a newer version (Aura) of the same car and Chevy has a version newer than that (Malibu). All are Opel Astras in one way or another. The Vibe is a (in my opinion) better looking Toyota Matrix. Neither seem to fit me, but who know? I might change my mind.

Other available Pontiac cars include the Solstice sprts car, the G5 which is a rebadged Chevy Cobalt and the Grand Prix which is being replaced by the G8. The Grand Prix was never a big seller, but with a base price about $5k higher, the G8 is probably going to have problems out-selling its predecessor. Kicking Tires also lists the G8 among the New Models Not Breaking Through in Tough Market.
cam: I think the G8 will be like the Mustang and the Ute in Au; one where the large majority bought are V8s. People will probably buy them as performance sedans. They arent going to be big sellers like the Camry or F150.

A friend in Phx got a Solstice. It is a nice car. I prefer the looks of the Saturn Sky though. Lots of convertibles in Phx. Must be the weather.

What do you think you might end up with? Lotus Elise? You are probably over-due for a super fun car ;)
ranomatic: The Solstice is nice - kind of a Corvette junior. The 'vert top is not as good in Virginia as it would be in Arizona. Back in the day when we had a Del Sol, I don't remember more than a dozen days when I really wanted to be out with the top off. That Lotus is very nice, but a little extreme. I might actually look around for a second hand GTO. The railroad fleet vehicle look could come in handy.

Right now, VW repaired my EIGHT YEAR OLD TDI under warranty. It will probably pay me to keep it until the warranty expires.
cam: Wow, how long is the warranty on it? That is pretty good.
ranomatic: 10 years/100,000 miles on the powertrain. The engine is known for out-lasting the car and 250,000 rebuild cycles are common, so they weren't taking too much of a chance. I didn't even consider this a factor when I bought it.

Long version of the problem I had and its resolution:

It was traced to a VW service part failure. At 60,000 miles I had the timing belt, tensioner, and water pump replaced. Only the belt itself was scheduled, but the cost difference to replace the tensioner and water pump is so low, I had them done as well. The new version of the belt and tensioner has an 80,000 mile service life. The water pump has no scheduled maintenance and is usually considered a break-fix component.

The first time the car stopped running, they diagnosed a failed injection pump (an $1800 part!). The injector pump is driven by the timing belt. While installing the pump, the replacement tensioner was found to be defective and replaced. No charge for fixing these, but I was concerned. They couldn't tell me why the tensioner failed. They also told me the injector pumps never fail while the engine is running. They always fail at the start/stop boundry, just like code :).

The car stopped again after driving just about 120 miles. This time, the new tensioner failed and damaged the timing belt. The theory is that there were bad tensioners in the stockroom. The injector pump failure may have been caused by improper tension on the belt, or it may have been just a premature part failure. We'll see. The thing runs great now.
cam: Cool
ranomatic: Note also that the G8 (the subject of your post) has a 5 year 100,000 mile powertrain warranty. They also plan to release the G8 Stort Truck soon. GM hasn't had a ute to sell since the old El Camino.

What is General Motors Selling?

The October 2008 production and sales break-downs for GM are in their investor section. This contains information on what brands are selling what volume and what cars/trucks are selling the best from GM's inventory. Of the GM brands active in the US, and there are a few, Chevrolet was the best seller by a long shot:

So what does GM sell the most of?

The Silverado and Sierra are the same truck just with a different badge. Of the Australian connection the Pontiac G8 (Holden Commodore) sold 1,082 units in October 2008 which isn't that much, but then, Saab sold a grand total of 1,659 in the same month. Of the Corvette marque there were 1,170 sold in October.

It looks like, that even with higher oil prices, the SUV and full size pickup is still the most popular of GM's offerings. I suspect those that are attacking the manufacturers in the US for not making fuel efficient cars that people want to buy are projecting what they think GM should be producing rather than the reality of what US consumers actually buy.

It is easy to forget that Toyota and Nissan both offer full size pickup trucks in the American market. They are locally built as well. The Ford F150 outsells the Toyota Camry. The Ford pickup is the best selling vehicle in America.
Lee Malatesta: Of the 152,101 vehicles Toyota USA sold in October, 30,556 were Camrys and 27,386 were Corollas.

Compare this to 132,838 in US sales for Ford, of which 43,324 were F-Series pick ups. I don't how much of that 43k figure is represented by the F250 and F350 lines, but its clear that the F150 isn't outselling the Camry by all that much.

Not to mention that Ford and GM are offering almost 10k in cash to new truck buyers. I think what you're seeing right now is mostly fleet replacement by business owners.
ranomatic: I've driven both the Malibu and Impala. Other than being slightly small, the Malibu is superior to the Impala in just about every way. So why is the Impala outselling it at a 2 to 1 rate?
cam: I have no idea. Police cars? Fleets? According to the wiki:

The Impala was selected as the 2006 and 2007 Fleet Car of the Year by Automotive Fleet and Business Fleet magazines and won the 2006 CAA Pyramid Award for Environmental Initiatives for the launch of its new Ethanol Powered E-85 model.

This made me laugh though:

Those who drive Chevrolet Impalas have also complained that the flow of traffic seems slower when in the car than when driving something different (other than a Ford Crown Victoria), most likely the result of surrounding drivers mistaking Impalas for plain-clothes police cruisers - the vehicle is extremely popular for law enforcement.

Same issue white Holden Commodores have in Australia.

cam
ranomatic: A co-worker and I drove a dark gray Impala from Houston to Dallas. We had a portable GPS unit mounted to the center dash. The whole thing looked very police issue. Even though the speed limit is at most 70MPH, free-flow traffic normally moves faster, maybe 75-80MPH.

You could tell how often drivers look in their rear view mirror. The answer is not very. We could cruise for 10 minutes minutes at a time at free-flow speeds. Then, someone would look back. When that happened, their first reaction would always to tap their brakes. Next, they would coast slowly down to the 65MPH speed range (below the legal limit, although probably showing the 70MPH on their speedometer - we used GPS to measure speeds; it became a game for us). At this point, we would become a rolling roadblock moving at 65MPH. Several minutes later, the other driver would pull into one of the slower lanes and we would pull past them. There would be no eye contact. We would pass and pull into the slower lanes as well, cruising at free-flow speeds again.

Lather, rinse, repeat.

Pontiac G8 GXP (Holden Commodore + HSV)

The Pontiac G8 GXP is starting to make the rounds of the US automative magazines, websites and blogs. It is to pretty much universal acclaim, and why not, it is a kick-ass muscle car with all the functionality of a large four door sedan. This is the same reason why it is popular in Australia as the SSV and the various HSV models.

Pontiac G8 GXP via Autoblog.

Holden's focus on quality in the 90s is paying off as well. Prior to the adoptions of the Deming Way in Australia, manufacturing was shoddy, of high variability and consequent poor quality. That has largely been fixed in Australian manufacturing:

Inside, the car is nice - and we don't mean "nice for a Pontiac." Since it will probably come up at some point, no, the interior isn't fastened together with the Absolutely No Play Allowed tolerances and super soft touch materials for which the Germans are credited.

The Pontiac G8 GXP is carrying the LS3 engine. This is a small block Chevrolet V8 that pumps out 415 hp in the GXP's case. The same engine in the Chevrolet Corvette is tuned to 430 hp. The small block chevy is a fantastic engine. It has tonnes of torque, is pretty much effortless in its application of power and is extremely economical for what is a V8 engine. I regularly get 23 mpg in normal driving. With highway driving it is often in the 29-30mpg.

HSV GTS via Steve Kay's photostream

The Pontiac G8 GXP is a mix of the Holden Commodore SSV and some of the HSV bits and pieces. With the price of a gallon of petrol dropping it may be more appealing to American car buyers, then again, those that buy muscle cars or sports cars tend not to be too concerned about the cost of gas. By American standards it is an expensive car, clocking in around the 40K mark; but for someone who wants a four door muscle car, as opposed to the Mustang-Camaro-Challenger style, then there is not much choice; the Cadillac CTS-V, the Dodge Charger and now the Pontiac G8 GXP.

It will probably find a durable niche in the American car buying public.

Holden Commodore Coming to the US as a Chevrolet Caprice (Not Pontiac)

The auto blogs are agog with the statement from Bob Lutz that the Holden Commodore nee Pontiac G8 won't go the way of the dodo with Pontiac and will be slotted into the Chevrolet line up as a Caprice. Bob Lutz was quoted as saying:

The last time we looked at [the Pontiac G8], we decided that we would continue to import it as a Chevrolet. It is kind of too good to waste.

David Welch at business week bemoaned the passing of the Pontiac G8 stating that it was an example of all that was wrong with GM and why it was in such a state. The G8 was an excellent car on a new platform that was selling well and it was going to be junked along with Pontiac. Welch writes:

As General Motors barrels through bankruptcy and ditches the long-troubled Pontiac brand, along with it goes the G8 sports sedan. What a shame. The car started in price at $28,000 and the sticker price got close to $40,000 if you bought the high-powered GXP model. When is the last time a Pontiac sold for that kind of sticker price? You'd have to sell two G6 coupes to get that kind of money.

Not only is it a premium car, but it is selling well to:

Sure that last-minute rush pushed sales up. Still, G8 sales rose 150% last month. Pontiac, which everyone knows is dying, sold nearly 16,000 G8s this year. That's more than Acura sold of its top-selling TL sedan and Infiniti sold of its G37 sedan. In other words, GM had a sporty sedan that was appointed with luxury amenities and sold at top-shelf prices. And out it goes.

I am sure Holden will be happy that the Commodore will continue to be imported to the United States. To be truthful it made more sense as a Chevrolet than a Pontiac anyway.

Update: Not so fast. Official corporate speak:

As part of its reinvention, General Motors is exploring every opportunity of effectively utilizing its global portfolio of vehicles, facilities and talent. While this exploration includes the possibility of extending imports of Holden vehicles (such as the recent Pontiac G8) to North America, no decision has been made at this time.

Basically nothing. Sounds like Bob Lutz and Fritz Henderson are having a power battle.

Update II: And now it isn't coming to the US at all. Lutz is quoted as:

The G8 will not be a Caprice after all. I'd mentioned it, and said we were studying it, giving it a serious look, because a car like the G8 was just too good to waste.

That's all still true. But I have to say that, with my new "marketing" hat on, upon further review and careful study, we simply cannot make a business case for such a program. Not in today's market, in this economy, and with fuel regulations what they are and will be.

The existing Pontiacs are it. Looks like Henderson won that internal power struggle.

Holden Commodore Coming to the US as a Chevrolet Caprice Police Car

It looks like Holden have managed to sell the Commodore into another niche market since Pontiac was axed. This time it is being sold as a fleet vehicle to the Police Forces in the United States as a Chevrolet Caprice fleet car. Rather than the Commodore it is the long wheel base version.

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