GM Holden Chairman and CEO Mark Reuss distanced Holden from the local production of hybrid models and committed the company to a "fuel diversity" future in Melbourne last week. And in the process, the local brand's boss made a none too subtle swipe at Toyota and the Australian Government.
Speaking at last week's launch of the updated turbodiesel Epica (more here) , the Holden boss clearly had the Japanese giant's plan to build hybrids Down Under, and the Australian Government's support of the initiative, in his sights when he cautioned the Australia auto industry against unilaterally pursuing the hybrid option.
Reuss' comments came as part of a speech that committed Holden to developing E85 compatible vehicles and a general policy of "Energy Diversity" Down Under.
"We're not going to ride any one silver bullet here into the future," Reuss told the local motoring media.
"We're at a crossroads for the company, a crossroads for the industry. At Holden we really see the future about choice.
"Pinning all your hopes on a single technology would leave you pretty exposed in the current environment. We see fluctuations almost on a weekly basis between the different alternative fuels we have available, and in some of those we don't have available.
"The past few months have really underlined how rapidly the landscape can shift [therefore] if we're to reduce our dependency on foreign oil, the future has to lie in energy diversity," the Holden chief opined.
Reuss described hybrids as financially uneconomical for most buyers and questioned the relevance of their local manufacture.
"We also believe you have to offer affordable solutions that recognise people obviously have different means and different budgets. Not everyone can afford the several thousand dollar premium currently required to buy a hybrid," Reuss said, quantifying the premium
Though Reuss did not state Toyota's Prius was his example, he quantified the premium at $17,000 [Ed: Prius is $37,400 vs Corolla $20,990] saying hybrids "don't pay" for the average person.
"As manufacturers, we really risk creating the situation where those most vulnerable to rising prices are those least able to access the new technology designed to make motoring more affordable," Reuss said.
"If we only offer hybrid technology as the only solution here in Australia in the motoring industry, we risk this whole thing [industry]. In short we'd be turning our backs on the people who will be looking to local carmakers as the most affordable solution."
Though GM Asia Pacific boss Nick Reilly famously stated earlier this year that a Commodore hybrid would be built Down Under within two years (more here), the timeline for such a program has since been extended (if not cut). Reuss says the company instead will adopt a policy of energy diversity.
"We see the future being about choice... Choice is really a style of vehicle that meets the specific needs of you and your family, or your business, but also the choice of being able to match that selection to specific fuel or powertrain technology, depending on how you use the vehicle, and how deep your pocketbook is, and what you're able to spend and use on the duty cycle of the vehicle," Reuss told the Carsales Network.
He says, however, that one of the key contributors to the development of alternative fuels is government policy that "encourages" the take up of such fuels.
"This is the classic chicken and egg scenario where each link in the chain is looking at each other to take the first step before they commit... At Holden we really aren't prepared to wait.
"[It's this] Ethanol promise that we're going after and taking leadership in, here in Australia.
Reuss has committed Holden to producing E85-compatible vehicles, in addition to rolling out improvements to its existing petrol range, plus cheaper LPG variants (in the case of Commodore -- (more here) and new turbodiesel models, such as the latest Epica.
"We have the technology for the vehicles and the development. And our local industry to produce it [ethanol fuels] is growing, but the infrastructure to deliver it is not currently there.
"[But] If you look at our petrol based supply here [in Australia]... you can rapidly displace up to ten per cent of that [total] petrol supply with ethanol today, without raising a finger or investing a dollar.
"The distribution and supply is another issue. We're working very closely with some of the petrol companies and the ethanol producers to rectify that," Reuss stated.
"We have to look to the future with E85 and it's a great opportunity for Holden to take leadership" he opined.
Though cheaper LPG models and the Epcia diesel are the only concrete examples of Holden's local fuel diversity rollout, according to Reuss the company is ready to make its play. He says all the decisions have been made and the timing is now more a case of strategy.
He says Holden will roll out cylinder deactivation (AFM in GM speak; already available on Holden-built models in the USA) on petrol V8 Commodore models "shortly".
"It's [the rollout] as our customer base wants it," Reuss told the Carsales Network.
"People have got to want to do this. I think it's a good feeling to know that you're contributing to the CO2 footprint. I think it's a good feeling to know you're contributing to the fuel economy gains. I like to drive things that are more environmental responsible where ever I am and I think [other] people do too.
"If we can offer them a way to do affordable diversity, it's very powerful," he said.
"We're not tomorrow going to ride the E85 wagon out of here and say this is the answer to everything. There's no way, it's clearly not... But it is another strategy that can help the country and the auto industry... We owe it to people to offer those alternatives and they'll help us pick which ones they want to ride."
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