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?

[hardlynormal]

won't those numbers be inflated simply because its a brand new car and dealers are getting stock?
not necessarily because people have purchased them?

[R-Design]

That's a fair point, but Holden has been pretty vocal about how well sales are going for this new model.

Originally Posted by CarPoint

Holden Executive Director Sales, Marketing and Aftersales, and CEO elect, Alan Batey said Holden was "very, very happy" with the Cruze's local rollout.

"It's early days but we're very, very happy. We probably have gone off much faster [than expected]," Batey told the Carsales Network.

http://carpoint.com.au/news/2009/sma...-success-16123

[Paxton]

Cruze has a large hire car following. There are also many dealer registrations to cover. I personally am yet to see one in the wild.

Holden are in enough trouble as it is. Commodore isn't making them a great deal of money, their parent company is stuffed, and they are throwing good money after bad trying to shoehorn Cruze into Elizabeth, when they have access to another GM Plant in Asia that can make the same car, just as well, for a lot less money. If building Cruze locally turns Holden a cent of Profit, I will video myself eating my old Britek hat.

[Wally]

My gut tells me me it will go well. As I mentioned recently my wife noticed the release advertising and I've heard other women talking about it recently too (in the same sentence as the Mazda). If Holden have pitched the product at women, it seems to be working.

On top of this GM are about to carryout a marketing blitz at higher than historical spending levels, with fewer brands:

"We'll heavy up on the spending," Lutz said at a press event here. "We've been spending at a level that barely sustained brand health. Now we're going to spend at a level that builds brand health."

Worldwide Hyundai-Kia have jumped into 4th place in front of Ford. They've increased sales by a million more units in twelve months, which suggests the small car takeup is on the rise.

[XR6_190]

I'll be honest, i think Cruze will sell relativey well, not because it deserves too, but because Marketing is one thing Holden does extremely well. That said, I don't think the Cruze will be a Financial success for Holden, not so long as it is built alongside the Commodore.

[JTFG]

It will do good, I saw one at the shops today, it looked pretty cheap in person (non biased opinion :P)

[Mr Hardware]

All i can see is new camira

[Mark s]

Originally Posted by Wally

My gut tells me me it will go well. As I mentioned recently my wife noticed the release advertising and I've heard other women talking about it recently too (in the same sentence as the Mazda). If Holden have pitched the product at women, it seems to be working.

On top of this GM are about to carryout a marketing blitz at higher than historical spending levels, with fewer brands:



Worldwide Hyundai-Kia have jumped into 4th place in front of Ford. They've increased sales by a million more units in twelve months, which suggests the small car takeup is on the rise.

I know of 3 such women who have ordered the new Cruize. All lease vehicles and will replace Astras.

I think smart marketing will sell this car as people will see it as a new Australian built car, 5 stars safety, Holden doing well despite global crisis, etc. You speak to 99% of people on the street and they all think that Rodeo, Colorado, Viva, Epica, Barina are all built in Australia along side the Commodore.

Only time will tell with build quality, etc if Cruize follows Epica, Viva and Barina. All of which I see as pretty much failing in Australia. One thing it has over the other 3 is looks. I personally think the Cruize looks a million times better than the 3 Daewoo's mentioned.

Still it's off to a good start.

Smart ads and how they portray a product will always sell more than a quailty product with poor marketing.

We just need to look at well VB sells to see this is true.

[Wally]

Originally Posted by Mark s

........
We just need to look at well VB sells to see this is true.

Hey don't knock Vitamin Beer.

[Mark s]

Sorry there is only 1 thing worse than "Green Death" and thats the Gold label version.

Same drink different bottle and 12 odd dollars more a carton. Yet again more proof the marketing sells. "look at me I drink beer from a bottle with a gold label"

Getting back to the Cruize, it does not suprise me that it has started well. It does look the goods over the 3 Daewoo's and your correct most women seem to like it. Even my Ford loving wife commented on how nice it looked.

If the car is reliable, comfy, etc. Then it will be a hit and will continue on down that path. I still have to wonder why GM is going down the Australia built path, when it can be produced cheaper in Asia.

Again time will tell if this is a winner for Holden both in sales and jobs within Australia. Lets hope it is for Australian jobs.

[Fordman1]

I think it will sell well.

Brand image, marketing, spin.........

Holden will sell a lot of them I'm sure and it will clean up the fleet market with them also.

The problem is this......

Unless they get a LOT of money from KRudd to offset their investment, they won't make money on any they sell.

This will get serious for them because this segment sells on price to the masses, and they won't be able to put this on the market (made locally) without losing money on every single one. Mark me words, if Ford or Toyota can't make money on a locally produced small car Holden won't....... ever.

I smell Vectra here......

They will sell lots of these until they make them locally building the brand, then they will sell lots made locally (losing a heap of $'s) before it all goes 'pear shaped'.

I give it 2 - 3 years before local production on this car is abandoned. 2014 ?

Bookmark this thread !

[Dave R]

Once they produce it locally, government will buy Cruzes instead of Corollas. At that point, I see Cruze sales exploding. Will it make profit? Time will tell.

[phillyc]

My best mate works for a multifranchise GMHolden dealer. He has sold plenty in the last few weeks.

He says that GMH have stated their intention is 2500 Cruze's a month in QLD alone. They believe it will topple C'dore for number 1.

At this stage he has a waiting time of up to November on certain colour and spec combinations with most having to wait an expected 6-8 weeks.

[Falcon Coupe]

I think the Cruze is a winner at least in the short term, the target market seems to like them, it has good features, a 5 star safety rating and is priced to sell.

[Spitfire 6.2]

At least its got a nice dash, the instruments and ICC etc look really nifty, not like the all red instrumentation in the VE. :

[schnoods]

They wont steal sales from commo's IMO.

They are a much better effort than the Epica, it will do well. the hype thats around this compared to the viva and epica is overwhelming as it seems holden havent done the "she'll be right " metallity with it.

It will be like the gemini of old as opposed the the camira...

[XplosiveR6]

The cruze will steal alot of sales from commodore, think about it, if 80% of c'dore sales are fleets, then these companies like telstra are going to see the benefits of a cheaper to buy and run car and still 'buy Australian'. In the real world the cuze isnt much smaller then the commondore so as a company/family hack it will do fine.
Which then begs the questing whats the point of the 3.0l commondore?

[Wretched]

too early to tell, i would rather wait a year.

[Ghiadude]

Originally Posted by Wally

Worldwide Hyundai-Kia have jumped into 4th place in front of Ford. They've increased sales by a million more units in twelve months, which suggests the small car takeup is on the rise.

OR cheap car takeup is on the rise- Knwon brand + small cheap econobox + slick marketing = sales

[Ducati888]

Originally Posted by XplosiveR6

The cruze will steal alot of sales from commodore, think about it, if 80% of c'dore sales are fleets, then these companies like telstra are going to see the benefits of a cheaper to buy and run car and still 'buy Australian'. In the real world the cuze isnt much smaller then the commondore so as a company/family hack it will do fine.
Which then begs the questing whats the point of the 3.0l commondore?

I disagree. If that were the case, a lot more Camrys would already be on the road. They're made in Melbourne.

[R-Design]

Originally Posted by Ducati888

I disagree. If that were the case, a lot more Camrys would already be on the road. They're made in Melbourne.

In Holden's case they've probably got a lot of their current Fleet business telling them 6-Cylinder cars are now a no go zone. Reuss said he was going to push the Commodore and 'educate' them on the 3.0l's benefits, but at the end of the day substituting the Cruze would be a simple fallback position.

Also, if 50% of Commodore sales are to Fleets that's a huge slice to lose.

[Ducati888]

Originally Posted by Boss315

In Holden's case they've probably got a lot of their current Fleet business telling them 6-Cylinder cars are now a no go zone. Reuss said he was going to push the Commodore and 'educate' them on the 3.0l's benefits, but at the end of the day subsituting the Cruze would be a simple fallback position.

What is the ratio of new cars that go in to fleets? I recall vaguely that about 10 years ago nearly 80% of new registrations of Falcs & Commos were for fleets.

I've always been at odds with claims of "Australia's favourite car" for either make when this is the case, and often the choice was one of the two brands only

[R-Design]

Originally Posted by Ducati888

What is the ratio of new cars that go in to fleets? I recall vaguely that about 10 years ago nearly 80% of new registrations of Falcs & Commos were for fleets.

I've always been at odds with claims of "Australia's favourite car" for either make when this is the case, and often the choice was one of the two brands only

Sorry, was editing my post while you were writing yours. Fleet business is gold for Australian manufactured vehicles, I agree it's what keeps them at the top of the charts.

[Dave R]

Originally Posted by Ghiadude

OR cheap car takeup is on the rise- Knwon brand + small cheap econobox + slick marketing = sales

They aren't merely selling due to slick marketing, they are actually producing decent vehicles.