After getting a $1 billion “investment” from both GM and the Australian government, Holden will be starting their first post-funding project; designing two new cars for the Chinese market.
While production will take place in China, design and development work will take place at Holden’s technical center in Port Melbourne, Australia. Those models will be developed for Shanghai General Motor, but no technical details were announced. Presumably, they will be smaller and more economical than the Holden Caprice-based Buick Park Avenue (above). Australia’s car industry is in a precarious position, with sales of large, Australia-derived V8 sedans (like the Holden Commodore and Ford Falcon) declining, while small cars, like the Holden Cruze and Mazda3 are gaining ground. Holden’s area of expertise will have to shift if this trend continues, and what better use for one of GM’s best subsidiaries than to focus on its biggest market.