By on September 17, 2009

Left Holden the bag?

The Freep has dubbed Chevy’s Next Big Small Thing a “hit” on the grounds that it’s big in Australia. The only problem? It’s not really selling all that well. Towards the bottom of its write-up, the Freep reveals that GM’s Holden division sold 4,826 of the US-bound Cruze in the last three months. Center for Automotive Research president David Cole reckons those numbers “kind of give you a clue as to what the potential could be” when the Cruze arrives stateside. If that’s true, the Cruze is a loser. Not only has Toyota sold 7,550 Cruze-class Corollas in the last two months, the Mazda3 and Hyundai i30 are also the segment’s fastest growers.

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41 Comments on “Cruze Hype Falls Down Under...”


  • avatar
    brettc

    I can’t see the Cruze (what a GD stupid name) selling that well in the U.S. We’ll see what actually happens when it’s available, but with all the better competitors out there in the same class, why should anyone buy a Cruze unless it’s heavily discounted? If it actually does manage to get 40 US MPG, then I could maybe see it being somewhat competitive.

    If only GM had done incremental improvements on the Cavalier – like what’s been done with the Corolla, Civic, and now Elantra. If that had occurred since 1982, GM might be in a slightly different situation.

  • avatar
    geeber

    The numbers get confusing, because the article mixes time frames.

    Here is one example:

    The volume of Cruze cars sold in Australia is much smaller, with 4,826 Cruze cars sold in the past three months. (emphasis added)

    The overall small car market in Australia was 19,211 in August, according to the Federal Chamber of Automotive Industries. (emphasis added)

    We have three months of sales for the Cruze, but when the total small car market is discussed, the only figure is for August. Which, if one doesn’t read carefully, makes the Cruze’s sales total look impressive in the context of the total small car market.

    On the other hand, the car hasn’t been on sale that long, and it is already among the top 10 sellers in Australia. So it must not be a total flop.

  • avatar

    4826 Cruze cars in 3 months is 19000/year in Australia. If australia’s population were equivalent to that of the US, at that rate you’d be talking more than 250,000 a year. Sounds like a success to me.

  • avatar
    NickR

    WTF is the emblem in the middle of the grille? From here it looks a like a retriever trying to hump a basketball.

  • avatar
    catpdx

    Maybe they should name it the snooze

  • avatar
    salhany

    That’s the Holden logo (a lion holding the world or something like that).

  • avatar
    Autosavant

    The cruze should easily get 40 MPG HIGHWAY, but if you want 40 MPG average, it might not.

    I consider the Cruze a far more important Vehicle for the profitability of that bankrupt Government Motors so-called company than the Stupid Volt.

  • avatar
    Autosavant

    “If only GM had done incremental improvements on the Cavalier –”

    It did, and that is the problem, it is a 27 -30 year old platform, and it was never any good to begin with! The competition will eat you alive when the CObalt is essentially an impoved 1982 Cavalier! It should, and it has!

    That’s why Toyota and Honda sell (together) 700,000 civics/corollas to the Cavalier/Cobalt’s current dismal sales rate (100k a year?)

  • avatar
    jpcavanaugh

    If those 3 months of sales divide out equally (and they may not) and with August total sales of 19211, the Cruze was under 8.5% of the August small car market. If GM is supposed to be such a big player in Austrailia, this would not seem very encouraging.

  • avatar
    brifol5

    Isn’t the Cobolt a slightly improved Ion rather than a Cavalier? Not that it’s any better a position to be in.

  • avatar
    KalapanaBlack

    Autosavant :
    September 17th, 2009 at 3:17 pm

    “If only GM had done incremental improvements on the Cavalier –”

    It did, and that is the problem, it is a 27 -30 year old platform, and it was never any good to begin with! The competition will eat you alive when the CObalt is essentially an impoved 1982 Cavalier! It should, and it has!

    That’s why Toyota and Honda sell (together) 700,000 civics/corollas to the Cavalier/Cobalt’s current dismal sales rate (100k a year?)

    The Cavalier was on the J-Body platform. The Cobalt is on the Delta platform that replaced it. The two have nothing in common.

    The Delta was developed globally for the Cobalt, Ion, and Opel/Vauxhall/Holden Astra.

    Of course, the 2004 Cavalier/Sunfire were on a modified J-Body platform. GM did keep in it production too long, but 2004 was the last time it was produced.

    And, although GM no longer use Greek characters to classify their platforms, the Cruze is an evolution of the Delta (and was in development as “Delta II” until just before launch), so it shares quite a bit of DNA with the Cobalt/G5/Pursuit/Ion/HHR.

    Does anyone know if they ditched the old-school twist beam rear axle yet? I’m hoping the Cruze has an independent rear.

  • avatar
    chinar

    thats 4826 units in the first 3 months of launch for a brand new nameplate with no hatch version and the 1.4 T yet to come

  • avatar
    AthensSlim

    KalapanaBlack :

    The Cavalier was on the J-Body platform. The Cobalt is on the Delta platform that replaced it. The two have nothing in common.

    The Cavalier and Cobalt may BE on different platforms, but when I got stuck with a Cobalt as a last-minute rental a month or two back (a bright red coupe with a big-ass wing on the back. Color me embarassed…), it sure felt like a mild evolution of the last gen Cavalier.

  • avatar
    psarhjinian

    Does anyone know if they ditched the old-school twist beam rear axle yet? I’m hoping the Cruze has an independent rear.

    There’s nothing wrong with a twist-beam rear axle in this class of car. It saves weight and opens up trunk space.

    And it can handle. Case in point: Honda Fit.

  • avatar
    redshift.flipgear

    I think the Cruze managed 1,971 units in August while the Corolla sold 3,659.

    The Mazda3 sold 2,898 the Lancer 2,171, and the i30 2,105.

    But there has to be a little more analysis given that rental passenger car purchases were up 14.3% in August.

  • avatar
    Styles79

    Having seen one yesterday, and read a few reviews, I think that you’ll find the reason it’s in the top 10 in Aus is partially simply because A. Holden is still very strong in Aus. B. I’d put money on most of those cars that have been sold being fleet/government purchases. This is conjecture, I don’t have figures.

  • avatar
    Stingray

    Does anyone know if they ditched the old-school twist beam rear axle yet? I’m hoping the Cruze has an independent rear.

    There’s nothing wrong with a twist-beam rear axle in this class of car. It saves weight and opens up trunk space.

    And it can handle. Case in point: Honda Fit.

    And saves costs…. lots.

    I think it’s crap.

    If you want to see a really compact arrangement, see the frenchy… for example, a Peugeot 405 with the 3 torsion bars (2 springs, 1 interconecting) and see how wide can your trunk be.

    It’s almost invisible from outside too.

  • avatar
    George B

    “If only GM had done incremental improvements on the Cavalier –”

    I’ve driven both a rental Caliber and a rental Cobalt. The Cavalier was pathetic. Worse than my beater car at the time. The Cobalt is a significantly better car than the Cavalier, but the competition also improved. The Cruze may do ok in the US if it improves in the Cobalt without moving up in price.

  • avatar
    gromit

    The Cruze is already on sale in Australia? Haven’t seen any on the roads yet. Maybe they’re so dull they go unnoticed.

  • avatar
    mtypex

    I find the ‘retriever and a basketball’ comment on the Holden logo to be hilarious.

    The Cruze really needs to improve on the Cobalt to win. The Caliber isn’t a good comparison, because Chrysler is toast and/or Fiat will be replacing Chrysler’s junk with, uh, Italian junk. New Focus is forthcoming … does GM want to be in the game or not?

  • avatar
    BDB

    From all reports, it’s not going to be able to hold it’s own against the new Focus, that’s for sure.

  • avatar
    Blue387

    Who the heck named this thing the Cruze?

  • avatar
    pacificpom2

    My son-in-law to be has bought a CD with the 1.8l motor. Drives ok, interior is a little bit more upmarket than the local I30/Kia whatever.
    He bought the car in July and it was delivered 6 weeks later, any orders now have a 8 to 10 week delay, perhaps that explains a slow start to sales (which is counted on registration of the car). As for the rear suspension, I’ll have to have a look. Also saw and HEARD a diesel variant last week. I was looking for an old gemini diesel until is passed by at low revs. Very old school sounding clattery diesel. Must have good soundproofing in the cabin. Even the toyota aircraft tow tugs I drive don’t sound that bad.

  • avatar
    Greg Locock

    “4826 Cruze cars in 3 months is 19000/year in Australia. If australia’s population were equivalent to that of the US, at that rate you’d be talking more than 250,000 a year. Sounds like a success to me.”

    Your maths is more or less correct, your logic is awful. Australians buy far more small cars than USAns, so your 250k number implies that USAns suddenly start buying small cars in huge quantities, something they have yet to do.

  • avatar

    The Cruze would do better in Australia if there was a hatch. Corollas are nearly all hatches here, and so are the competitors (e.g. i30 only comes in hatch form).

    Small sedans are completely pointless when compared to the same model with a hatch. I’m surprised Holden has sold as many as it has.

    My guess as I’ve not seen a single Cruze yet is that they have been bought en masse by rental fleets. Rental folks don’t come down here all that often.

  • avatar
    FreedMike

    I cannot believe some of these comments…the car’s the ninth best seller in that country in its third month in production, it hasn’t even been introduced here, and you’re trashing it already?

    I mean, has anyone who’s damning this car before it’s even been introduced actually DRIVEN the thing?

    Seriously, the GM hating is getting old.

  • avatar
    FreedMike

    catpdx :
    September 17th, 2009 at 2:56 pm

    Maybe they should name it the snooze

    Perhaps, but in this class, the best-driving car isn’t necessarily the best seller. Cases in point: the Mazda 3 and VW Rabbit. If you drive the cars in this class (and I have), you’ll find both are radically better drivers’ cars than the big sellers in this segment.

    And yet, the two dullest drives – the Corolla and Civic – rule the sales charts. Go figure.

  • avatar

    Andrea Matthews here from Holden.

    I wanted to clarify a couple of points made in this post and the subsequent comments.

    In August, Holden sold 1,971 Cruze units in Australia, making it the 8th best selling car in the country, no small feat for a car that was only launched in June.

    We’ve been restricted by our levels of stock and we’re currently in the process of adjusting our stock to cope with the high level of demand.

    We also recently conducted a survey of new Cruze buyers which illustrated a very high level of satisfaction from owners with over 95 per cent stating they would recommend the vehicle to family and friends.

    All in all, it would be fair to say we’re thrilled with how well Cruze has been received in Australia….

  • avatar
    PeteMoran

    I mean, has anyone who’s damning this car before it’s even been introduced actually DRIVEN the thing?

    Seriously, the GM hating is getting old.

    Dang that “Perception Gap”.

    The people who have driven it in Australia don’t like it.

    “The Cruze ticks many of the smallcar boxes. But its petrol engine misses the mark by a fair way, which detracts from what is a competitively priced small car with more than a few redeeming features.

    A generous assembly of standard fare, good safety and respectable road manners make up some points but-for now-the Cruze falls short of more polished competition.”

    Holden also have the “Holden Owners Grant” cash-on-the-hood promos going right now. I can’t remember when they started but I can’t remember not seeing that promo either.

    @ NickR – brilliant!

  • avatar
    V6

    i find this all rather irrelevant. being in the top 10 for car sales is hardly a flop, it sells a lot more than the euro Ford Focus.

    personally i wouldn’t be buying a Cruze right now because Holden are going to start producing their own small hatch based on the Cruz/Astra, launching next year i believe. hopefully it’ll fix the engine issues.

    local mag compared 12 or 13 small cars in this class, the Cruz with the 1.8 & 6 speed auto got the worst fuel consumption by a fair margin

  • avatar
    TonyJZX

    here’s a few pointers for people who’ve only seen this car on the web…

    the car is ugly

    the car is a sedan in a segment dominated by hatches

    the car is a daewoo

    the car has a horrible 1.8 litre petrol

    the car has a horrible VM motori diesel

    the car is overweight at 3,100 – 3,300 lbs

    the car has an uncompetitive warranty

    the car has possibly the worst dealer network

    on the plus side i think it has a nice interior

    this car would be the very very very last choice i would buy… it isn’t even a good rental car

    no-one really likes this car but it’s been pushed on every market like an unwanted arranged marriage

  • avatar
    Mirko Reinhardt

    Different markets, different tastes, different preferences.

    This August, in Germany, Toyota sold 1,055 units of it’s Auris model, which is the European version of the Corolla.

    Volkswagen sold 31,527 Golfs in the same time frame.

    By applying the same kind of logic as TTAC does here, Toyota sales would have to suck in America.

  • avatar
    FreedMike

    @ Pete Moran:

    From that review, it sounds like there’s quite a bit to like about this car, but they’d prefer a bigger engine. Well, shit, who doesn’t want more engine in ANY car? And unless Toyota ships nothing but hopped-up Corollas to Australia, let’s remember that model ain’t exactly a Ferrari Enzo wannabe.

    And, based on the sales numbers, the Cruze is far from a sales dud – it outsells the Ford Focus, a car from a highly established Australian brand, and a product many journalists count as an elite small car.

    Is the Cruze going to drive like a downsized BMW 3-series? No, but here in America, neither do the best-sellers in this segment – the Corolla, Honda Civic and Ford Focus. In fact, all are notably dull.

    The key for success for the Cruze is for it to be reliable and agreeable to drive. If it is, it’ll carve a niche for itself here.

  • avatar
    FreedMike

    Mirko Reinhardt :
    September 18th, 2009 at 6:10 am

    Different markets, different tastes, different preferences.

    This August, in Germany, Toyota sold 1,055 units of it’s Auris model, which is the European version of the Corolla.

    Volkswagen sold 31,527 Golfs in the same time frame.

    Just curious…is the pricing for Japanese cars in Germany affected by tariffs?

  • avatar
    PeteMoran

    @ FreedMike

    There are more reviews than just that one. Many of them essentially saying the same thing; it falls short, buy a Corolla, Civic, i30 etc.

    The sales are artificial for two reasons; new model hype (such as it can be for a rebadged Daewoo), and cash-on-the-hood.

    Well, shit, who doesn’t want more engine in ANY car?

    More more more! Yeah, I knew there was a reason my baseball cap just didn’t feel right; I need a 10-gallon Stetson.

  • avatar
    raast

    GM and small cars.
    LEARN from history.
    Ya think?

  • avatar
    rnc

    Just curious…is the pricing for Japanese cars in Germany affected by tariffs?

    I don’t think so, I believe it is more of a case of Toyota having to establish a dealer network from scratch (In Japan dealers can’t sell more than one brand on lots, very effective in keeping out competition as buying land to start dealer would be very expensive(veiled protectionism)), Japan wanted to do in EU what it did in US (using established dealers), EU said you open your dealers we’ll open ours, Japan declined, so EU put same rules in place for Japanese.

  • avatar
    ton12

    “Perhaps, but in this class, the best-driving car isn’t necessarily the best seller. Cases in point: the Mazda 3 and VW Rabbit. If you drive the cars in this class (and I have), you’ll find both are radically better drivers’ cars than the big sellers in this segment.
    And yet, the two dullest drives – the Corolla and Civic – rule the sales charts. Go figure.”

    That one is easy to figure. Shoppers in this class mostly want fuel economy and reliaibility. Mazda 3 is not great in MPG compared to sub-compacts, and the the Rabbit/golf never has been reliable. But I think you already answered you question: Those that want a fun car to drive (smaller part of this shopping class) will go with VW or Mazda.

  • avatar
    TonyJZX

    if you buy a cruze over a Ford Focus you are nuts

    granted Ford aren’t great at marketing their strengths here and the current south african made Focus isn’t all that great… but what small car is all that great?

  • avatar
    FreedMike

    PeteMoran :
    September 18th, 2009 at 10:18 am
    The sales are artificial for two reasons; new model hype (such as it can be for a rebadged Daewoo), and cash-on-the-hood.

    …and speaking of “cash on the hood,” you do realize that GM’s not the only manufacturer doing that, right?

    http://www.edmunds.com/incentives/RebateController?step=1&setzip=80134&tid=edmunds.n.incentivesindex.incentives.1.1.*#toyota

    The Corolla, the best selling compact in America, also carries a rebate. The second best seller, the Honda Civic, has cash on the hood in the form of special financing and leases (my mom just bought one and got a phenomenal lease rate).

    Why are we trashing GM for doing what every other manufacturer does?

  • avatar
    Pch101

    Why are we trashing GM for doing what every other manufacturer does?

    It’s apples and oranges. Domestic incentives are well above anything offered by Toyota or Honda: http://www.edmunds.com/help/about/press/156366/article.html There’s no comparison, and you’re being disingenuous in your efforts to equate the two.

    The key for success for the Cruze is for it to be reliable and agreeable to drive.

    That isn’t nearly enough.

    If GM wants to restore its reputation quickly to that of the good ol’ days, then it needs to make best-in-class cars. Not just average, but clearly outstanding, so that the consumer believes that it is worth taking a risk.

    GM does seem to be making real strides with interiors, which is good. But this car has been almost universally panned for the motor. Even for buyers who aren’t enthusiasts, a mediocre engine is going to be a turnoff, because the responsiveness and sonic qualities of the motor are important in forming impressions of perceived quality. A company with a reputation for poor quality can’t afford that.

    The domestic fans need to realize that “good enough” isn’t. To rise back to the top, they need to be the best and prove themselves, year in and year out, until buyers have their trust restored. Part of that will require having a best-in-class four-cylinder normally aspirated gas engine, and GM doesn’t have any such thing to offer to North Americans.

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