GM Holden To Build Small Carline Alongside Best-Selling Commodore

GM Holden will build an all-new small car in Australia alongside the country's best-selling Commodore range. The second carline will start in the third quarter of 2010 with support from the Federal and South Australian Governments. The vehicle will be based on General Motors' global Delta small car platform and feature new technologies to increase fuel efficiency and reduce greenhouse emissions.

The new front-wheel-drive vehicle will be built as a sedan and hatch at GM Holden's Elizabeth manufacturing facility in South Australia. Design and engineering work will take place at the company's headquarters in Port Melbourne, Victoria. Start-stop hybrid technology and capacity to run on alternative fuels such as E85, diesel, LPG and Compressed Natural Gas (CNG) are all being considered for the vehicle's development. It will be GM Holden's first locally produced car beyond its current range of larger vehicles since the Asian economic crisis ended Vectra production in 1998. The program will require 500 to 600 existing employees at Elizabeth and is estimated to provide 500 to 600 local supplier positions.

GM Holden Chairman and Managing Director, Mark Reuss said the announcement provided opportunity to take a leading role in developing alternative fuel and fuel saving technologies in Australia for Australians. Mr Reuss said the program would be a major contributor to the economy, generating an estimated $70 million to $80 million in wages and $30 million in research and development.