Holden to ditch astra?

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http://www.drive.com.au/Editorial/Ar...rticleID=62296

The future of Holden's second-best seller is under review, with currency fluctuations and commodity price increases threatening the future of the European-built Astra.

Holden has put a stop on imports of the Astra while it conducts price negotiations with Opel, the European subsidiary of General Motors that manufactures the vehicles.

Company spokeswoman Kate Lonsdale denies the two GM subsidiaries are locked in a dispute but says Holden has cancelled its April and May allocation of Astras until it conducts a review of its price structure. The decision means no Astras will arrive in Australia in June and July and could spell the end of the badge in Australia.

"The Astra is being studied at the moment and until we come to an agreement with Opel on pricing, we've placed orders on hold," she says.

The Astra situation is further complicated by the fact Opel is in the midst of a reorganisation that could see the company cut adrift from General Motors in the next couple of months as part of that
company's restructure.

Dealers are reporting the supply of Astras is already becoming restricted.

The situation is a blow to the company, which is struggling to cope with the slump in new-car sales.

Ms Lonsdale says there are still Astras available but some colours and models may prove hard to get.

The news comes as photos of the next-generation Astra have leaked to the internet ahead of the car's anticipated European launch at the end of this year.

Holden has sold a rebadged version of the European Astra in Australia since 1996 but Ms Lonsdale says the company won't reveal its plans for the car until it is ready.

"For competitive reasons, we'd rather not talk about our small-car strategy.

"Astra's a great car but it has to make business sense for us," she says.

The company will launch the Korean-built Cruze small car in the next couple of months and will also build a small car based on the same underpinnings as the Cruze at its South Australian plant from the third quarter of next year.

In Europe, General Motors sells the Cruze as a Chevrolet and the Astra as an Opel, with the Astra positioned as the more upmarket option.

The Astra is tipped to have a more sophisticated suspension set-up, more technology and a more up-market interior than the Cruze.

The same approach is possible for Australia, with Holden engineers and stylists developing a more up-market version to sell alongside the imported version of the Cruze.

Holden is committed to spending $450million on the Cruze, while the Federal Government will kick in $150million.

With that type of money, a range could be built on the same line, including a wagon and a small soft-roader. Holden currently sells the imported Astra wagon in Australia.

Holden's small-car strategy is crucial to the company's future in Australia, as sales of its bread-and-butter Commodore have almost halved in the past decade as buyers shy away from large cars.

The company's decision to sell a budget-priced, Korean-built Viva small car alongside the Astra has backfired, denting the company's small-car sales.

The Viva, introduced in 2005, was supposed to increase Holden's slice of the booming small-car market but had the opposite effect, with sales dipping while other brands enjoyed record demand.
Holden sold more than 30,000 Astras in 2005. Last year, it sold less than 15,000, while Viva sales totalled less than 6000. Sales of both cars are down about 20per cent this year, in line with the overall market downturn. The Viva has been discontinued.

Holden also replaced the Opel-sourced Barina and Vectra with Korean-built models that have been less than successful.

As the pictures show, the new Astra five-door looks like a winner.

With a longer wheelbase and wider stance than the current car, the new Astra looks sportier and is expected to be roomier inside, with improved crash protection.

In Europe, the Astra will be powered by a turbocharged 1.4-litre petrol engine or a choice of either a frugal 1.3-litre, 1.7-litre or 2.0-litre turbodiesel engine with low carbon dioxide emissions.

The Cruze will use a different 1.8-litre petrol engine and the 2.0-litre diesel.

The Astra bears a strong resemblance to the larger Opel Insignia, with its high rear end and low nose.

The range will include a sportier, low-slung and sleek VXR three-door model and a wagon. The VXR will get more aggressive styling and a more powerful 200kW version of the current Astra's 2.0-litre turbo engine.