Cruze success threatens Epica
“I can see a time when Cruze will be eating Epica’s lunch,” newly-installed GM Holden Boss Alan Batey says. “Cruze has really surprised us at how well it has been selling early in its market life and with the localisation of the car next year I can only see that getting better.”
Off the record, Holden insiders concede that the Korean made Epica has not come up to expectations despite a recent round of revisions and that it is facing a rocky future in light of the Cruze’s quick acceptance by the market.
There were only 148 Epicas sold last month, against almost 2000 of the Cruze. Even more telling was that demand for the Epica was down almost 50 per cent against the same month last year, a possible pointer to buyers seeing a more attractive alternative in the Cruze.
“To be honest Cruze has wildly exceeded any expectations we had,” marketing boss Philip Brook says. “I know it is early in the game but we have already done a customer ring out and the response (from 245 new owners) was unbelievably positive.
“Even the things we thought may have been a bit of a problem aren’t. They love the styling, the size, the price … it just ticks all the boxes. Normally you would expect answers like ‘love the styling … but’ or ‘think the price is great … but’. This time there are no buts.” Brooks declined to suggest Epica was a disappointing performer, saying only that: “we didn’t really have that many expectations for it.”
The fact that buyers have taken to the Cruze with such enthusiasm just as it arrives from Korea could yet prove something of a thorn for Holden with plans to re-style and re-launch the car with a ‘more Aussie’ look next year. The Australian-designed and built models will include a sedan and a hatch to be constructed at the company’s Elizabeth factory in Adelaide and it would be a huge embarrassment if it was the imported model buyers continued to demand.
However, there is still conjecture over how much of the car will be sourced and manufactured in Australia and how much will be imported from Korea where the Cruze is currently made. “If it was possible of course we would like to have 100 per cent of any car sourced and built in Australia,” Batey says. “Unfortunately it is not and while as much of the componentry as possible will be Australian made there is inevitably a percentage of the components that will be imported.”
While nobody from GM is prepared to put a percentage figure against just how Aussie the Adelaide Cruze will be best estimates appear to fall in the 50-60 per cent range. The body panels for the hatch and sportswagon will be pressed in Adelaide, interior fittings and trim are also likely to be sourced as much as possible from Australia along with glass and bulky components such as fuel tanks which are costly to ship.
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Cruze success threatens Epica
