Hatchback Cruze In The Works

General Motors has laid out billions of dollars to build the Cruze sedan, monies which include new engines and transmissions as well latest parts, components, you name it. Built from the ground up, Opel designers had a big hand in creating the Cruze, but soon Opel will be leaving the GM fold, likely to become a subsidiary of Magna International.

A Holden Cruze Hatchback

There is still one matter to be handled regarding the Cruze and that is to add a hatchback version to the line. With Opel out of the way, GM will need to turn to someone else to get that job done, a task that the company’s Australian subsidiary, Holden, has agreed to handle.

Holden will invest $600 million to design and build the Cruze hatchback, a car that it fully intends to sell in other markets. Hatchbacks are not popular in North America, but the car could easily be sold across Europe, South America, Asia and Australasia where consumers enjoy this sort of body design. Right now, the Cruze is being sold in South Korea, China, Australia and will soon go on sale in Europe with North American production slated to begin in April 2010.

Filling Available Plant Capacity

Likely, the Holden Cruze hatchback would be built at the company’s Elizabeth plant in South Australia, the same plant that has sent American versions of the Holden Commodore (Pontiac G8) overseas for the past two years.  With the pending demise of Pontiac and with unused capacity waiting to be tapped, the Elizabeth facility is a natural for Holden.

GM Holden sent out a news release on Monday assuring its customers that the company was not being affected by General Motors’ U.S. bankruptcy filing which took place that same day. GM’s Australia operations are fairly independent and funded separately though wholly-owned by GM. GM plans to keep Holden as part of its portfolio unlike Opel, Saab, Saturn, Hummer and Pontiac which are either being sold off or shut down.

Sales of the Holden Cruze for the Australian and New Zealand markets will begin this month. Holden is sourcing its Cruze models from GM Daewoo of South Korea.