• Holden counts on Colorado pick-up growth to reverse falling Australian sales
GM Holden has identified the Thai-built Colorado utility as its ‘number one’ model line with which to rebuild its business in Australia.
This follows the company’s exit from local manufacturing in October and a poor start to the year that has seen the lion brand’s sales fall 22.5 percent.
The downturn has come as Commodore sales have plummeted 55 percent to the end of April, with the switch from the Australian-built VFII model to the German-built Opel Insigniabased ZB series.
The all-new Mexican-sourced Equinox mid-size SUV has performed below the company’s expectations in such a vital segment and, crucially, as Colorado volume has also dropped off 17 percent.
Colorado’s slip has come as sales growth in the all-important ute segment overall has increased 7.4 percent this year – due entirely to an everincreasing appetite for 4x4 pick-ups.
The Holden ute has fallen from fourth in the segment last year behind the Toyota Hilux, Ford Ranger and Mitsubishi Triton to fifth as the resurgent Series III Nissan Navara rebuilds its presence – and it is in danger of sliding to seventh as upgrades to the Isuzu Ute D-max and Mazda BT-50 are felt in the marketplace this month.
Yet Colorado still stands as Holden’s top-selling vehicle – ahead of the Astra small car, Commodore, Equinox and other key models such as the ageing Captiva seven-seat SUV.
GM Holden senior manager of product marketing Andre Scott identified the ute as the most important model for the company going forward.
“As part of our strategic focus for the year, we’ve identified a few core car lines to focus on, and Colorado is definitely number one within that,” he said.
Mr Scott said that given the ZB Commodore and Equinox – the company’s other two pillars – are relatively new models in the Australian market, they will need time to gain a sales foothold and grow volume, so the responsibility for an immediate impact fell to the Colorado.
He said the ute should be among the top three performers in the segment.
“In 2017, Colorado finished in fourth place, and I think Colorado deserves to be in the top three,” he said.
“That’s the holistic statement in terms of volumes and where we should be in the segment, and there’s absolutely no reason why we shouldn’t be in the top three at any given point.”
VFACTS sales figures to the end of April show that Hilux, 16,230, and Ranger, 13,664, remain the dominant forces in the category and Triton, 7870, has pulled well ahead of Colorado, which has recorded 5407 new registrations so far this year.
Navara is ahead of the Holden ute with 5699 units year to date, with Dmax, 5108, and BT-50, 4424, close behind.
Mr Scott said the primary focus would be on increasing 4x4 sales, which was reflected in the current sales split with 4759 4x4s sold compared with 648 4x2s.
The most popular current variant is the high-series LTZ dual-cab.
He attributed Colorado’s slow start to 2018 to a lack of visibility, with the new Equinox launched in November and Commodore, February, getting the lion’s share of marketing attention.
However, a big-budget new advertising campaign that started in March – launched with the tagline ‘Not to be outdone’ – is expected to put the Colorado back into the minds of potential buyers.
“This campaign is something that is really long-term for us, it’s a platform,” Mr Scott said.
“This is a big deal for us in maintaining a consistent message and market about what Colorado stands for.”