Holden's global impact

By ALASTAIR SLOANE Motoring editor

Holden Australia's new V6 engine plant in Melbourne, its first new factory in 22 years, is expected to earn the company around $500 million in exports each year.

The $400 million centre will make engines for the Commodore sedan, the best-selling passenger car in Australia and New Zealand.

It will also build engines for General Motors vehicles in other parts of the world. The first of these will go to Mexico next month for use in the Buick Rendezvous crossover vehicle.

The new "High Feature" V6 is an all-alloy unit with twin camshafts and continuously variable valve timing. It can be made in capacities of 2.8, 3.2, 3.6 and 3.8 litres.

Initially, it will be built in 2.8, 3.2 and 3.6-litre units for export. The 3.8-litre engine will come on stream later next year and make its debut in the facelifted VZ generation Commodore, replacing the archaic two-valve 3.8-litre V6 in the present VY Commodores

The VZ Commodore might be the first in the 25-year history of the badge to come with a choice of V6 engines. There is speculation that the engine in the entry-level VZ Executive will be a two-valve, single-overhead-camshaft unit. More valves, camshafts, and variable valve technology will go into the engines in better-equipped Acclaim and Berlina models.

The HFV6 engine for export to Mexico for the Buick Rendezvous is a 24-valve DOHC unit with variable valve technology. The plant can offer a variety of engine configurations with fewer valves, multi-point or direct injection, as well as being compatible with future hybrid V6 powerplants. The HFV6 fits east-west on front-wheel-drives, longitudinally on rear-wheel-drives, and all-wheel drive applications.

The new global V6 plant is aiming to build 900 engines a day or 240,000 engines a year within about 12 months. It has a capacity of 300,000 engines a year.

GM chairman Rick Wagoner flew in from China for the plant's opening and described it as "one more example of Holden's expanding role within GM".

Wagoner and Holden Australia chief Peter Hanenberger - who retires next month - were in Auckland last Friday. Wagoner said there was potential for Holden to be a global source of large rear-wheel-drive GM cars.

Holden has been exporting rebadged Commodore sedans to the Middle East for the past couple of years and just shipped the first of 18,000 Pontiac GTO coupes to America.

Wagoner said Holden would continue to supply complete vehicles to other GM divisions, as well as supplying the HFV6 engines.

"We're trying to manage our brands a little more consistently on a global basis. It is great to be able to use the Holden-produced product in other brands, in Chevrolet in the Middle East or Pontiac in the US."

He said Holden would have more of a role within GM if the US and Australia signed a bilateral free-trade agreement.

"There is a lot to be gained on both sides if we can get this [free trade agreement] done. I have not followed it closely but in general I think it would open up more possibilities."

One is the likely export of a one-tonne Commodore ute, rebadged as a Chevrolet El Camino. GM product vice-president Bob Lutz believes it would sell well in the US.

Wagoner said the HFV6 engine would eventually go to most GM brands, including Opel and Cadillac.

"This is our global engine family in the size category," he said. "I guess any product might use it. Where production comes from depends on logistics. This engine will get broad-based application in parts of the world including, over time, China and Korea."

The new engine plant in Melbourne is a sister to the St Catharine's plant in Ontario, which builds the 5.7-litre Generation III V8 engine for Holden.