Growth plan links SSX to HSV

HOLDEN Special Vehicles could be building unique sheetmetal vehicles in the second half of the decade as part of plan to broaden its appeal and sales internationally.

And the all-wheel drive SSX hatchback concept revealed at the Sydney motor show last year could be the first car to get the green light.

HSV's future has been the subject of internal debate and discussions since 2001.

Last year's appointment of Ray Borrett as director of performance products and racing is an indication of how seriously Holden is taking the issue and the launch of the $215,000 Monaro-based 427 shows there is already a desire to grow the company.

For the past few months the options have been studied by former Holden and South Pacific Tyres executive Rob McEniry.

Back at Holden as a consultant, he made his recommendations to the board about a month ago.

His study is believed to have covered off crucial areas such as HSV building bespoke vehicles, sales targets, export opportunities and the way Holden should structure its involvement with its hot-rod partner.

His proposal is believed to have been signed off in principle.

Of course, HSV is owned by Tom Walkinshaw via a private company and he has assured Holden it is not tied up in the imbroglio that is the bankrupt TWR Group.

It does not appear that there is any concrete plan for Holden to take over control of HSV at this time.

Mr Borrett confirmed the expansion plan was underway and that SSX was under consideration to be built solely as a HSV vehicle.

"Ideally we'd like to see those sorts of products with a HSV badge on them, but whether it's that one or something else I am not going to tell you," he said.

"We are looking at various scenarios for HSV to have more individual products.

We have a plan that's been put to the board and ticked off by the board.

"SSX is an obvious example of that type of vehicle that is a derivative of a platform that's unique. But to find the wherewithal to make those sort of things happen with the investment involved, the tooling involved and such low volumes that we have in Australia, it's very difficult.

"You have to think long and hard and how you are going to do it and is there any export potential - and all those sorts of things. You have just got to get the volume up."With Holden stretched to the limit by the upcoming all-wheel drive introductions, the changeover to the HFV6 drivetrain in 2004 and the all-new VE bodyshape in 2006, HSV doing bespoke bodyshapes appears to be a post-2005 consideration.

But why embark on the project at all if it is so difficult to make financial sense?"HSV does a terrific job in satisfying a niche in the market where their products currently reside - 3500 cars a year in the ClubSports, R8s, those sorts of things, and then you do the 427 which is the absolute ultimate," Mr Borrett said.

"There is a gap in between and you go to look at how you can do some products to satisfy that gap, and if you look at all the imports you've got to figure out how you can do a product that's going to challenge the imports in a serious way."Mr Borrett said a key to HSV increasing sales would be exports.

"Export is a critical part of the growth strategy because the market in Australia is just not growing," he said.

"You can expand to an extent but if you really want to get some significant growth then you have got to export, and there's no reason why HSV can't follow on the back of Holden's export programs.

Mr Borrett said a worldwide target of 10,000-15,000 vehicles for HSV was "in the ballpark".

* HSV will not reveal its Caprice-based long-wheelbase Grange performance car until August.

* The all-wheel drive system that Holden will initially use under the forthcoming crew-cab and wagon models is tipped to have the generic name "Cross Trac".