Cruze to conquer Commodore?

[R-Design]

The July 2009 VFACTs results show Commodore sold 3856 units as compared to 4906 in July 2008. The Cruze on the other hand leapt out of the box in its first full month of sale with 1,982 units registered (Compared to a total of 2,132 Astra’s/Viva’s in July 2008).

As well all know the new car market has faltered in 2009 explaining partially the drop in Commodore sales. This combined with the imminent launch of their new V6 engines, and hangover from the end of financial year may have contributed to the Commodore’s tally.

The Cruze on the other hand has the advantage of being an all new model, has been heavily advertised, and complies with Government Fleet policy (4-Cylinder / Diesel). Also, the fact that Cruze will be built in Australia, has given it a ‘true blue’ Australian shine.

Overall the Large Car segment is falling while the Small Cars are shining. The export market is similar with Commodore recently losing a large contact in the USA, while Cruze is being built with export markets in mind.

What will the net effect of Holden producing the Cruze in Australia Long Term?